Eco Wave Power Global AB (WAVE:NASDAQ) announced Q4/24 financial results "that were a bit better than our expectations," reported Alliance Global Partners Jeff Grampp in a March 5 research note.
"The company ended 2024 with a healthy liquidity position," wrote Grampp.
89% Uplift Possible
Alliance maintained its $14 per share target price on the Israel-based clean energy firm, now trading at about $7.40 per share. The target implies is a potential return of 89%.
Eco Wave Power remains a Buy.
Financial Highlights
Grampp presented the key takeaways from the wave energy tech company's Q4/24 financial results. Revenue came in at $168,000 ($168K), more than triple that of Alliance's $50K estimate.
Similarly, operating expenses during the quarter were better than Alliance expected, at $500K versus $700K.
"The higher revenue and lower opex drove a narrower Q4/24 operating loss of $400K compared to our estimate of $700K," wrote Grampp.
At quarter's end, cash and short-term deposits totaled $9.1 million ($9.1M), consistent with Alliance's estimate. This is sufficient to fund operations through 2026, Grampp purported. His cash burn estimates are $2.6M for 2025 and $5.6M for 2026, the latter due to capex for the Portugal project.
During full-year 2024, noted Grampp, Eco Wave Power lowered operating expenses by 7% year over year (YOY), for an overall 32% reduction since 2022. Also, the company decreased its cash used in operating activities by 30% YOY.
Project Developments
Grampp provided the latest news on some of the company's wave energy projects. Its pilot project at Israel's Port of Jaffa became operational around the clock in late December. The project's capex has remained below Eco Wave Power's target, 4% of capex annually.
At its project at the Port of Los Angeles in California, the company is ready to move into the parts procurement and installation phase. It is just waiting on receipt of the final permit.
For its first megawatt (MW)-scale project, in Portugal, the wave energy company engaged a local engineering firm to finalize the civil engineering design and load calculations for the floaters. This work is expected to be done soon. Eco Wave Power aims to complete the first 1 MW at the project next year, and remains on track to do so.
"WAVE now has five projects in various stages across three continents, demonstrating an increased level of activity that we expect to push the company towards fully commercializing its wave energy technology," Grampp wrote.
Stock Data
Eco Wave Global has 5.83 million shares outstanding. Its market cap is $40.95M. Its 52-week range is $1.01−17.63 per share.
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