Eco Wave Power cuts costs in 2024, projects in focus

Wave energy developer Eco Wave Power has presented its 2024 financial results, highlighting cost reductions, revenue generation, and a strengthened financial position.

The company raised $3 million through a registered direct offering, bolstering its financial resources. Operating expenses fell by 7%, marking a cumulative 32% decline since 2022. 

Net cash used in operations dropped by 30% ($784,000). Cash and deposits increased to $9.3 million as of December 31, 2024, up 11% from the previous year.

Eco Wave Power recorded its first wave energy project revenue of $168,000, alongside $225,000 in other income, bringing total revenue and income to $393,000 – up 21.7% from 2023. 

The company secured multiple grants, including support from Innovate UK’s Energy Catalyst Round 10, the Interreg Atlantic Area program, and the ILIAD Consortium under the European Green Deal initiative.

“As we look back at 2024, I am proud of the significant progress Eco Wave Power has made in both financial and operational aspects. Our team has worked tirelessly to deliver on our strategy of efficiency, innovation, and growth, which has positioned us strongly for the years to come,” said Inna Braverman, CEO of Eco Wave Power.

“In terms of our financial performance, we made remarkable strides in strengthening our position. We reduced operating expenses by 7% and net cash used in operations decreased by 30%, which demonstrates our commitment to cost control while advancing our projects. Our cash reserves increased by 11%, highlighting the financial stability we have built.”

Operating expenses totaled $2.46 million, down 7% from 2023 and 32% from 2022. Research & development (R&D) costs increased 4% to $536,000 due to higher payroll expenses. 

The company said it expects further increases as it rolls out projects in the U.S., Portugal, and Taiwan. Sales and marketing expenses dropped 19.7% to $301,000, mainly due to lower payroll and travel costs.

General and administrative expenses slightly increased by 0.5% to $1.77 million, driven by higher payroll, travel, and depreciation costs. Future growth is expected to drive further increases in this category. 

Net loss from a joint venture rose to $79,000, up from $19,000 in 2023, mainly due to costs linked to the Jaffa Port project and its connection to the power grid.

Operating loss decreased by 3% to $2.34 million. Net financial income was $230,000, down from $547,000 in 2023. Net loss increased to $2.1 million from $1.87 million in 2023, the company noted.

Eco Wave Power repurchased 7,625 ADSs (61,000 common shares) for $50,000 in September and December, recording the cost as treasury shares deducted from equity.

The company ended the year with $9.3 million in cash and deposits, including $7.8 million in cash and equivalents and $1.5 million in short-term bank deposits.

In terms of recent news coming from Eco Wave Power, in February, the company started infrastructure upgrades at its 1 MW wave energy project in Porto, Portugal. In August 2024, the company launched its first MW-scale wave energy project in Porto, Portugal. 

The wave energy developer also signed a memorandum of understanding (MoU) with Bharat Petroleum Corporation Limited (BPCL) to explore the potential of wave energy in India.