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Ocean Sun reported a net loss of $6.5 million for the third quarter of 2025, alongside a total income of $2.4 million. Despite innovative strides in floating solar technology, the company’s financial performance fell short of market expectations, leading to a 6.56% drop in its stock price. The stock closed at $1.3, nearing its 52-week low of $1. The company continues to focus on expanding its market reach in island and nearshore solar projects.
Key Takeaways
- Ocean Sun reported a $6.5 million quarterly loss.
- Total income reached $2.4 million, with $300,000 from license revenue.
- Stock price declined by 6.56% following the earnings announcement.
- The company is advancing its presence in the floating solar market, with projects in Maldives and upcoming ventures in Brazil.
Company Performance
Ocean Sun’s performance in Q3 2025 reflects its ongoing challenges in achieving profitability despite expanding its project pipeline. The company’s focus on island and nearshore markets, such as the Maldives, underscores its strategic direction. However, the financial loss indicates that these initiatives have yet to translate into positive cash flow.
Financial Highlights
- Total Income: $2.4 million
- License Revenue: $300,000 from Alotta projects
- Net Loss: $6.5 million
- Net Cash Flow: -$5.3 million
- Cash Position: $11.9 million at quarter-end
Outlook & Guidance
Ocean Sun is poised to complete key backlog projects and expand its footprint in island and resort markets. The company anticipates increased interest following the successful Maldives project. A leadership change is also on the horizon with a new Chief Product Officer expected to join in January.
Executive Commentary
CEO Kristian Tørvold emphasized Ocean Sun’s competitive edge, stating, "Ocean Sun’s patented technology is the world’s best FPV technology." He highlighted the potential for significant energy cost reductions in island markets, noting, "With Ocean Sun’s solution and storage, islands that have been paying $0.30-plus per kilowatt-hour will see a dramatic reduction in energy prices."
Risks and Challenges
- Financial Sustainability: The company’s ongoing losses may impact its ability to fund future projects.
- Market Competition: Increasing competition in the renewable energy sector could affect market share.
- Project Execution: Delays or cost overruns in new projects could strain resources.
- Regulatory Environment: Changes in energy policies could impact project viability.
Q&A
During the earnings call, analysts inquired about the Maldives project, which combines a 2 MW solar installation with a 3 MWh battery, powering a resort 90% of the time. Questions also focused on ongoing projects in the Philippines and Turkey, and the anticipated impact of the new Chief Product Officer on the company’s strategic direction.
Full transcript - Ocean Sun As (OSUN) Q3 2025:
Kristian Tørvold, CEO, Ocean Sun: Welcome to the presentation of Ocean Sun’s third quarter results. My name is Kristian Tørvold, and I am the CEO of Ocean Sun. Today, as always, we’ll first talk about Ocean Sun in brief before going through a few updates and project developments. Then Karl will present the financials. Ocean Sun’s patented technology is the world’s best FPV technology. It offers low CapEx due to low material use, fast and easy installation, and lean transportation. It sees high efficiency due to the PV panels being water-cooled. The structure, derived from Norwegian maritime heritage, offers a seaworthy solution. At Ocean Sun, we are making solid progress with our floating solar solution for islands and nearshore markets. The 2 megawatt Suniva Seeker project in the Maldives is nearing completion, and once announced, this will be the enabling solution for resorts and island nations to convert from diesel gensets to renewable energy.
With Ocean Sun’s solution and storage, islands that have been paying $0.30-plus per kilowatt-hour will see a dramatic reduction in energy prices. Reduction in diesel consumption, and reduction in pollution. Through this, we are enabling local infrastructure such as coal storage and other business. At Ocean Sun, we’re really excited about providing this opportunity, and we’re confident that our robust floating solar technology will be a big part of the solution for thousands of inhabited islands around the world. On that note, we are in several dialogues with Indonesian developers exploring floating solar for their islands. We are also working with key Indonesian energy stakeholders and recently met many of them at the Indonesia-Europe Business Forum in Oslo. It’s clear that Indonesia is moving towards greening their islands, and Ocean Sun is looking to be a big part of that.
We also signed an MOU with an Indian counterparty that is also focusing on powering islands in India. Lastly, we showcased our technology at the annual Resort Island Expo in Malé, in the Maldives. The progress we have already had in the market has been very inspirational for the many expo visitors. As mentioned in last quarterly report, Ocean Sun has signed an MOU with the city of Jotmir to assess the feasibility of a 25 MWp floating solar project. This initiative aims to support Ukraine’s energy recovery and resilience, leveraging Ocean Sun’s robust floating solar technology. As part of our commitment, Ocean Sun is participating in the REBUILD UKRAINE event in Warsaw in mid-November, joining the Norwegian delegation to engage with stakeholders and further explore opportunities to contribute to Ukraine’s sustainable energy future.
In Q3, we also launched our new website, designed to better showcase our technology, project, and value proposition. This new website has already resulted in increased traffic and very positive feedback from partners, clients, and industry stakeholders. Please, I urge you. If you haven’t already, go have a look. We have also had considerable progress with our REA1 project in Brazil. This project is focusing on the development of a new fixation method for panels in benign waters. Together with the Norwegian research institution IFE, we have completed a solution that is ready for field testing, and our Brazilian partners have now selected a site for the demonstration system, which is planned for installation early next year. This project will be our first in Brazil, but it will also be an important showcase for the Ocean Sun solution for benign waters globally.
Project-wise, there are only a few changes since last quarter, as we are working to complete the construction of key backlog projects. Our focus remains clear. We are concentrating on tier two opportunities, and we are advancing in the resorts and island markets. Once the Maldives project is commissioned, the world’s first of its kind, we are in no doubt that there will be considerable interest for similar opportunities from the Caribbean, Africa, and Southeast Asia. At Ocean Sun, the focus is clear. We are working hard to win and complete more rings on the water. We are confident about what the upcoming quarters will bring.
CFO or Financial Analyst, Ocean Sun: Yes, taking a quick look on the financials for the quarter, we recorded an income of $2.4 million in Q3, and this includes $300,000 in license revenue from the projects we have completed with our partner, Alotta. Alotta is making good progress with Ocean Sun’s technology in the aquaculture sector and announced two new projects, one in Norway and one in Chile, during Q3. We’re very excited by this and, like, the progress with decarbonizing the aquaculture industry. The quarterly result ended at negative $6.5 million, and thanks to positive working capital effects, the net cash flow was negative $5.3 million. That leaves us with a cash position of $11.9 million at the end of the quarter. With that, we open up for Q&A. Let’s see if we have any questions here.
Any comments on Aboitiz Power’s participation in the GEA4 auction with the Maget project in the Philippines, as well as updates with your Turkish partner regarding the Manisa Demir Körpü Dam? Sorry about the pronunciation.
Kristian Tørvold, CEO, Ocean Sun: That’s very good questions. We are working very closely with SNAP in the Philippines. We will hopefully bring more updates on that in the coming months and quarters. In terms of the collaboration with our partner UGIS in Turkey, there is currently a tender for Demir Körpü Dam. Yeah, it’s about 45 megawatts, which we are involved with, but there’s no tender decisions yet, and the documentation is still not completed.
CFO or Financial Analyst, Ocean Sun: Good. Rouel is asking, what revenues can we expect Ocean Sun to recognize on each of its projects?
Kristian Tørvold, CEO, Ocean Sun: It depends a bit on which project we’re talking about. On the project that we’re developing in, for example, island resorts and such, we will have revenue both for the pre-engineering. Then we’ll have revenue from the license fee, and then we will also have revenue from the on-site supervision during the project. We can consider considerable revenue from these projects, but of course, it depends largely on the size of the project.
CFO or Financial Analyst, Ocean Sun: Great. The next question is, in the last report, you mentioned that the CPO, David, will leave the company. Have you found a replacement?
Kristian Tørvold, CEO, Ocean Sun: Yes, we have found a great replacement who will join Ocean Sun January 1. We are very excited and will soon also announce who that is. It will be a great contribution to the Ocean Sun team.
CFO or Financial Analyst, Ocean Sun: Great. A question on Suniva. How many % of the total power need will the solar plant give in the Maldives?
Kristian Tørvold, CEO, Ocean Sun: The two-megawatt peak power plant and three-megawatt hours of battery will run the resort once completed about 90% of the time, leaving the gensets as backup power. The batteries will be fully charged on a sunny day from the two megawatts in about three hours. It is a very efficient system that we’re building.
CFO or Financial Analyst, Ocean Sun: Great. That was the last question.
Kristian Tørvold, CEO, Ocean Sun: Thank you very much for this Q3 report and the presentation. Any questions, of course, we are always ready to talk, so please reach out. Thank you.
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