The Lolland-based development company Floating Power Plant A/S ended the financial year 2023/24 with a loss of 12.2 million kroner. This is evident from the recently published annual report.
The loss is almost double compared to the previous year, where the deficit was 6 million kroner.
The company, which develops floating energy platforms at sea with wind, wave, and hydrogen technology, had only a modest gross profit of 963,000 kroner. On the other hand, personnel costs amounted to 8.6 million kroner, and financial expenses totalled 5.2 million.
Development costs - but generates no income
Floating Power Plant still has no significant operating income. The values lie in development projects, patents, and investments in subsidiaries. The intangible fixed assets are recorded at 85.3 million kroner, while the subsidiaries are valued at 15.4 million.
- Development of new technology is expensive and time-consuming, says communications manager Morten Loftager Egedal.
The company's equity is negative at -15.3 million kroner. There is also significant short-term debt, and the annual accounts are submitted with reservations for continued operations. According to management, operations depend on the company raising new capital in 2025.
- This is not unusual for a technology company, and we need a lot of capital at this stage. But everything is going according to plan. We hope that by 2028 we can break even or deliver a small profit, says Morten Loftager Egedal.
Financing under negotiation
After the end of the financial year, the company has raised 2.6 million in new capital and taken out 4.3 million in loans. A larger financing package of up to 182 million kroner is under negotiation and divided into two stages. The first part, approximately 26 million kroner, is close to being closed.
Part of the financing is through a potential main investor, who is also a customer. A new project in continuation of the planned demonstration plant near Gran Canaria is under planning.
According to the management, there is a possibility of up to 35 million euros in tax credits in Spain, which can improve the project's economy and make it easier to attract investors.
