Norwegian floating solar specialist Ocean Sun has released financial results for the first half of 2021, showing an increase in net loss compared to the results posted a year before.
The company’s operating income was NOK 3.6 million ($391,000) in the first six months of 2021, as opposed to NOK 3.9 million ($436,000) recorded in the first half of 2020.
The income primarily relates to grants from the European Commission for the BOOST project , and the research council of Norway, Ocean Sun said.
The net loss for the company amounted to NOK 7.4 million ($827,000) during the period, which is an increase from NOK 4 million ($446,000) posted in 2020.
According to Ocean Sun, the increased deficit compared to previous periods is primarily due to increased cost from upscaling of the business.
Personnel costs increased due to two new employees in Norway during the second quarter, in addition to board remuneration for the period leading up to the annual general meeting being paid out in that period.
A consultant has also been engaged to assist on the BOOST project increasing the project related expenditures.
Further, Ocean Sun’s China office has expanded, employing a supply chain specialist to further strengthen our relationship with important Chinese suppliers.
In addition, the company had one-off costs during the reporting period of approximately NOK 0.7 million ($78,000) related to upgrading the Magat pilot with the latest technology .
While this upgrade was not contractually required, it is valuable to demonstrate the Magat system’s performance with the latest qualified technology, Ocean Sun noted.
Cash and cash equivalents amounted to approximately NOK 89.3 million (around $10 million) as per 30 June 2021, of which NOK 0.8 million ($89,000) was restricted cash.
The equity ratio was 95.8% and the company had no interest-bearing debt, and as such, is well capitalized with available liquidity to support current operations and future growth, Ocean Sun said.