Metacon announced on Friday that it has received a 1.2 MEUR (~13.2 MSEK) customer payment from Motor Oil and that 0.99 MEUR in previously restricted bank funds have been released. The inflows relate to the ongoing 50 MW electrolysis project in Greece. In our view, the news is a positive confirmation that the project execution is progressing as planned and provides a welcome addition to the company's liquidity position. The announcement does not trigger any estimate changes.

Welcome cash inaflow supports project execution

The 1.2 MEUR payment is tied to equipment manufactured at Metacon's facility in Patras and delivered to the Motor Oil project in Corinth. Furthermore, the release of the 0.99 MEUR bank guarantee, which was linked to the delivery of technical documentation, frees up previously restricted cash. As we have stated before, large projects such as the Motor Oil project, typically require significant working capital. This is partly because Metacon’s customers often require guarantees backed by locked capital, and partly because Metacon generally needs to pay its suppliers before receiving payments from customers. We view the news positively, as it confirms that the project is proceeding according to plan while generating cash flow that helps the company execute its order backlog. The company also noted that assembly and manufacturing are progressing well, and deliveries are scheduled to continue throughout the summer.