Release Date: August 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Horisont Energi AS (FRA:9GJ, Financial) has made significant progress on commercial agreements for various new projects.
- The company has reduced costs by 50% compared to the same quarter last year, leading to a reduced loss of NOK29 million.
- The Barents Blue project has generated substantial local interest and support, creating several hundred new jobs.
- The company has received the status of a project of mutual interest from the EU for the Gismarvik project, which could lead to EU funding.
- Horisont Energi AS (FRA:9GJ) has strong support from local communities and stakeholders for its projects, enhancing its market penetration and sustainability credentials.
Negative Points
- Despite progress, the company acknowledges that some stakeholders are impatient for more news and results.
- The capital runway remains a concern, with the company actively exploring additional funding options.
- The timeline for key projects like Barents Blue and Polaris has been extended, potentially delaying returns.
- The company faces challenges in achieving commercial maturity for its projects, which is crucial for moving forward.
- There is uncertainty regarding the award of new CCS licenses, which could impact future project developments.
Q & A Highlights
Q: Did Horisont Energi apply for the new license alone or with other companies?
A: We are only able to comment on our own application. We will not comment on whether we are applying alone or with other companies at this time.
Q: Can you elaborate on the secured indicative offtake term sheets for ammonia?
A: We are working with a group of companies for offtaking ammonia, securing the full required offtake. This is due to our high level of sustainability and taxonomy compliance, providing us an advantage over US and Middle East competitors.
Q: What is the timeline for the Final Investment Decision (FID) for Barents Blue and Polaris projects?
A: The FID is expected in late 2025 or 2026. We have aligned the scope and schedule across the projects, which has led to this updated timeline.
Q: How does the CO2 terminal capacity compare to other projects?
A: Our terminal has a maximum capacity of 24 million tonnes, serving both our own and third-party systems. This is larger compared to other terminals, which typically have a capacity of 5 to 7 million tonnes.
Q: Does the agreement with PGNiG include a clause about payment to draw some?
A: We cannot comment on this as it is confidential.
Q: What can you say about your partnership with E-ON?
A: Our partnership with E-ON is strong and ongoing. We are working with them in the ammonia, hydrogen, and CCS spaces, and are revising our partnership agreement on CCS this fall.
Q: What are your expectations regarding the new CCS license application?
A: We expect the license to be awarded within 2024. We believe we have a strong application with high commercial maturity on the customer side.
Q: Why are you not buying shares if you believe you are creating value for shareholders?
A: Due to external commitments that precede my employment with Horisont, I cannot buy shares in publicly traded companies. My agreement with Horisont is based on this assumption.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
