Good morning, and welcome to the presentation of M Vest Water's first quarter 2026 results. My name is Tor Olav Gabrielsen, and I'm the Executive Chairman of M Vest Water. I'm also joined by our CFO, Morten Hilton Thomassen, who will take you through the financials and summarize the key takeaways from today's presentation. Please note that the webcast is being recorded. The replay, including the presentation slides, will be available at our website later today. Here you can also find our first quarter report for more details. Before we begin, please note that the following mandatory disclaimer applies to everything presented today. We will start with a brief overview of recent highlights, followed by a short introduction to our company. We will provide an update on our business activities and financials.
Please submit your questions via the Q&A panel, and we will address them during the Q&A session at the end of the presentation. Total revenues for the first quarter of 2026 amounted to NOK 5.8 million, up from NOK 4.3 million in the same period last year, representing a year-over-year growth of approximately 35%. In March, we have received a purchase order from our business partner, Downstream Marine, for the delivery of a flotation unit to a Norwegian salmon slaughterhouse, owned and operated by one of the major seafood companies. Aquaculture is a profitable standalone business segment with strong visibility into future earnings. Our ambition is to reach annual revenues of NOK 100 million-NOK 150 million from this segment during 2028-2030. Based on our current projects and our existing order book, baseline annual revenues are projected to exceed NOK 30 million in 2026.
This outlook is expected to strengthen further, supported by the ongoing tender activity and strong demand from our solution for both existing and new customers. We have two important pilots to complete, one in Saudi Arabia and one in Germany. The pilot for a major oil producer in Saudi Arabia, originally planned for completion during the first quarter this year, has been put on hold pending stabilization of the geopolitical situation in the Middle East. In Germany, the paid long-term pilot at the large-scale METHA dredging plant in Hamburg started in Q4 2025, but was temporarily paused by the operator due to technical maintenance of the plant. The pilot is scheduled to resume in May and is expected to run throughout the second quarter.
Finally, I would like to mention that we have now moved into new premises in Bergen, increasing our capacity for chemical production and storage to support a higher activity level we foresee over the next five years. M Vest Water develops green technologies for water and wastewater treatment, helping industries address water pollution challenges. Our two main products are NORWAFLOC, a green and biodegradable chemical, and NORWAPOL, a high-performance filtration technology. In addition, we deliver equipment and complete solutions combining chemical and technical expertise to meet our customers' needs. We have established facilities in Norway and Germany and operate in the U.S. and Middle East through partnerships and agents. More than 80% of the world's wastewater flows back into the environment without any water treatment, and about 1 million-3 million tons of nano and microplastics are released into nature annually.
The paradox is that for decades, the chemicals used to treat wastewater are synthetic and thereby directly contributes to nano and microplastics being released into the environment. The world is facing a growing water crisis driven by climate change, urbanization, and increasing competition for limited freshwater resources. This is leading to environmental challenges such as more pollution, higher water consumption, and ultimately increased scarcity of clean water. M Vest Water's mission is to innovate eco-friendly water treatment solutions that minimize the impact of hazardous chemicals and support a circular economy. Our solution is natural-based products that replace microplastic-based chemicals and enable the sustainable reuse of valuable sludge. Let's move on to the business update. The global water treatment chemical market is growing steadily and is expected to reach $50 billion by 2028. Our priority business areas are oil and gas, municipal wastewater, dredging, and aquaculture.
These are large water-intensive industries facing increasing pressure to reduce emissions to the environment and reuse water to a far greater extent than they do today. With our patented and proven technology, combined with a scalable capital-light business model, we are well-positioned to capture growth as industries invest in water treatment, reuse, and circular solutions. In the Norwegian oil and gas market, M Vest Water supplies two water treatment facilities with our technology and technical services.
Both these facilities treat highly oil contaminated water from oil production in the North Sea with excellent results. These installations provide stable and growing revenues and serve as an important commercial and technical references. Over the past year, we have focused on establishing our presence in the Middle Eastern markets. Our approach has been twofold: winning contracts to pilot our technology and securing participation in tender processes for long-term deliveries of our products and solutions.
Two important pilots were planned in the Middle East in 2025. The first is an assignment to qualify our technology at an oil treatment facility in Saudi Arabia. I will return to this on the next slide. The second was a green de-oiler technology pilot carried out in collaboration with a national oil and gas producer in Oman. The pilot was executed in October 2025. M Vest Water's products demonstrated effective de-oiling performance. This verification required reducing the emulsion breaker dosage during the test. The operator could not reduce the optimal dosage during the execution, limiting our ability to document the full potential effect. The pilot confirmed that M Vest Water's product meets the customer's key objectives and performance requirements. Our chemicals were evaluated as performing equal to the incumbent synthetic products for oil and water removal.
Even though the pilot did not have optimal conditions to fully demonstrate the performance potential of our products, M Vest Water is now prepared to participate in future tenders for this and other projects in Oman. In March last year, M Vest Water announced that a large oil company in Saudi Arabia has decided to qualify our technology at a major oil field. The pilot was initially scheduled for June 2025, but was postponed due to geopolitical situations in the region in the time, the 12 year [day] war. The next available execution window was Q1 2026, and the pilot was rescheduled accordingly. In February 2026, M Vest Water and our partner, Enviro-Tech Systems, mobilized equipment, NORWAFLOC products, and personnel to the site in preparation for the pilot.
Following the outbreak of the war in February 28, our focus shifted to personnel evacuation, and the pilot was placed on hold again. At present, the field remains shut down due to the absence of export routes for the produced oil. Consequently, a stabilization of the geopolitical situation and reestablishment of the export route is necessary to execute this important pilot. For our German business, the ongoing and paid long-term pilot at METHA is currently our most important priority. To our knowledge, we are still the only provider of a 100% natural products to replace synthetic chemicals within the dredging industry. Our main goal is to convert their ongoing qualification work into a long-term supply contract in the large-scale dredging market, hopefully within this year.
I would also like to highlight that our natural products can be used in several other industries, which represents a significant business potential for M Vest Water in the longer term. METHA is a flagship in the dredging industry, recognized for its scale and leadership in sustainable dredging management with a strong ambition to eliminate the use of synthetic chemicals in sludge dewatering. We have collaborated with METHA since 2022. In the first full-scale test in 2023, we achieved a 25% substitution of synthetic chemicals, meeting METHA's mandates and validating the performance of our natural-based alternatives. With increasing regulatory pressure from the German authorities, we further developed our solutions. In 2024, we achieved a technological breakthrough with our new natural products and can now replace 100% of synthetic chemicals.
In 2025, we initiated a structured test program to qualify the products at METHA. In the third quarter, we received an order for the final qualification step, a paid long-term pilot which started in Q4 2025. In first quarter 2026, the operator temporarily paused the pilot due to the need for restoration and maintenance of the plant's existing dewatering equipment. We expect the pilot to resume in May and continue throughout second quarter. Upon successful completion of the final qualification step, and provided that both METHA's and Hamburg Port Authority's expectations are met, M Vest Water will go into further commercial negotiations regarding long-term contracts with METHA. The latest news in aquaculture is that our strong collaboration with Downstream Marine resulted in yet another equipment order in March. The delivery is to a Norwegian salmon slaughterhouse operated by one of the world's leading seafood companies.
The slaughterhouse is expanding its capacity and preparing to meet future strict discharge requirements. The delivery is planned to be installed in Q3 2026 and includes a flotation unit with the potential for additional sales of a dosing system and M Vest Water's natural water treatment product, NORWAFLOC. Our latest technology, a sensor-based adaptive water treatment solution, provides 24/7 real-time monitoring, track progress variations, analyze data trends, and proactively adjust system parameters to sustain optimal performance. These efforts are key to maintaining M Vest Water's market-leading position. These technology advancements developed in 2025 resulted in two new contracts before the end of the year. The equipment deliveries started in the first quarter and are expected to be complete during the second quarter. I would also like to mention that in parallel, we are exploring sludge dewatering solutions for the industry.
Wastewater treatment and sludge management are closely linked, and M Vest Water is actively researching improved dewatering methods to ensure a more complete and integrated approach in future systems. As mentioned, aquaculture has become a profitable standalone business segment with good margins and good visibility in the expected revenue going forward. By maintaining our leading position, we have a good visibility into future expansion as the implementation deadlines for EU regulations approach. Based on our current information, the majority of these factories are expected to implement water treatment solutions between 2026 and 2030. To date, the only two mandated slaughterhouses, both completed in 2024, chose to integrate NORWAFLOC from day one, and the third mandated facility is in the recipient of the recent equipment order from Downstream Marine announced back in December 2025. Moving forward, our goal is to capture the market as the deadlines approach.
M Vest Water estimates our market potential to be NOK 100 million-NOK 150 million in annual recurring revenues. In addition, approximately NOK 300 million-NOK 500 million in regulatory compliance measures and equipment. The rollout of new solutions is also driving increased demand for related service and maintenance. Our vision remains high, and we are targeting a 70% market share within 2030. I will now hand it over to Morten, who will provide you with an update of the financial and wrap up the presentation with a few key takeaways. Thank you.
Thank you Tor Olav. Let's start with the P&L statement. In the first quarter, the revenues were NOK 5.8 million, up from NOK 4.3 million in the same period last year, which is a year-over-year increase of 35%. EBITDA was negative, NOK 4.7 million, and in line with the first quarter of 2025. Net loss was negative with NOK 5.6 million. We expect the revenue growth to continue as we will have two equipment deliveries to be completed during the second quarter. Our revenues consist of chemical sales, equipment sales, as well as services related to process optimization and technical support. In the first quarter of 2026, chemical sales represented 70% of total revenues, and sales to the aquaculture segment accounted for 80% of the revenues. Our steady growth in chemical sales and recurring revenues is perfectly illustrated by the chart to the left.
The right chart, divided into each industry's contribution to our total revenues, illustrates how aquaculture has been our primary growth driver during the last three years. During this period, we have also continuously supplied two oil and gas treatment plants with chemicals and technical support. Looking at the balance sheet, operating cash flow in the quarter was NOK -2.3 million. Our capital-light business model is reflected in a consistently low CapEx. During the quarter, about NOK 1 million were invested in patents and test equipment to support ongoing projects, optimization, and improved water treatment performance for our customers. The company has a credit facility of NOK 8 million issued by the bank, of which NOK 3.3 million was drawn as end of the quarter. In February, we secured a NOK 10 million credit facility from our largest shareholder. At the end of the quarter, NOK 1 million was drawn.
The loan is convertible and secured and has a one-year duration. Interest-bearing debt was in total NOK 4.3 million and includes both the overdraft on a credit facility from the bank and the drawn amount of the shareholder facility. We appreciate the trust from our main shareholders. Combined with expected revenues and our existing bank facilities, the shareholder credit facility strengthens our liquidity position and support continued execution of our ongoing projects and strategic priorities. Let's take a look at our financial performance since 2023 and our growth predictions over the next five year period. As mentioned, aquaculture has become a profitable standalone business segment for M Vest Water. Our company has more than doubled its revenues during the last three years, from NOK 11 million in 2023 to NOK 26 million in 2025, with the aquaculture segment being our primary growth driver.
In this market, we have strong visibility into the implementation timeline as salmon slaughterhouses are required to install water treatment solutions under the new regulatory framework. This visibility allows us to plan and scale chemical production in line with expected deliveries. Our leading market position supports high growth ambitions over the next three to five years. Toward the end of this period, we expect the aquaculture segment alone to generate annual revenues in the range of NOK 100 million-NOK 150 million. Dredging and oil and gas, on the other hand, are markets with significantly greater revenue potential but involve much longer lead times. M Vest Water remains confident in the relevance of our solutions in these markets and the revenue potential moving forward. However, important pilots need to be completed before we can provide any revenue predictions for these markets.
For the present year, based on current projects and our existing order book, we expect baseline revenues to exceed NOK 30 million. This projection is expected to strengthen further, supported by ongoing tender activity and solid demand from both new and existing customers. Finally, here are the key takeaways from this presentation. M Vest Water is confident that with our patented and proven technology, combined with a scalable capital-light business model, we are well-positioned to capture growth as industries invest in water treatment, reuse, and circular solutions. Our excellent partnership with Downstream Marine has resulted in yet another new contract during the quarter, confirming the industry's trust in our solutions. Today, the aquaculture segment represent a profitable business area and generates stable and recurring revenues for our company.
At the same time, we are experiencing a growing order intake and have strong visibility into our future earnings in the upcoming three to five year period. For the current year, 2026, based on project execution and our existing order book, we expect baseline revenues to exceed NOK 30 million. It is important to note that we expect this outlook to strengthen further as we progress through the year, supported by ongoing tender activity and increasing demand from both existing and new customers. Our ambitions remain high, and we aim for the aquaculture segment alone to generate annual revenues in the range of NOK 100 million-NOK 150 million within 2030. Our international growth initiatives within dredging and oil and gas continue to represent substantial long-term value for our company.
M Vest Water is fully focused on a successful execution of current and upcoming pilot projects in Germany and Saudi Arabia, with the ultimate goal of converting these into long-term supply contracts. I will now hand it over to Fearnley for questions and answers.
Very good. That concludes the presentation of the results, and we'll now move over to the Q&A session. As a reminder, if you have any questions, please post them through the Q&A chat function, and we will try to cover as many as possible. Starting off, we have a question relating to growth and the aquaculture segment. Your baseline revenue guidance of NOK 30 million for 2026 implies meaningful growth from 1Q's annualized run rate of roughly NOK 23 million. Can you please walk us through the specific contracts that bridge that gap through the remainder of the year?
I think, I don't want to go into the specific contracts, but I can say that it's mainly driven by the aquaculture and that we are seeing that as we implement these solutions, the clients see the need to actually both in terms of increased spending of both equipment, sensor, for instance, sensor and automatic solutions, and also increased chemical consumption as they also increase the production at these slaughterhouses. This NOK 30 million that we provided a couple of weeks ago as some kind of a baseline, that is also, as Morten Hilton Thomassen pointed out, a baseline which we are expecting to be raised during this year. This baseline was based on the first quarter, what we saw in the order book and expected revenues for the year at that point in time.
That will be real in the future, as we progress forward, obviously adjust that. We have an expectation for that to be increased.
Okay. Thank you, Tor Olav. One more question related to aquaculture. What is the current status of enforcement of discharge regulations for salmon slaughterhouses? Are the new requirements already being enforced?
Yes, they are being enforced. However, as, they have certain implementation dates, set out by the authorities. As they reach these deadlines, they need to be within those parameters and implement their solutions. This is a license to operate. The slaughterhouses that have already implemented our solutions, like Morten said, the two mandated, slaughterhouses, they're also being followed up by the authorities. This is, regulations that is being followed up by both the authorities and the industry as we progress. We expect, the industry to actually also, be implementing these solutions as they reach the deadline. Yes, it will be enforced.
Okay. Perfect. Thanks. On liquidity, I believe that's best directed towards you, Morten. You had NOK 4.3 million drawn across your credit facilities at quarter end against total credit facilities of NOK 80 million. How many quarters of runway do you believe you have before potentially having to seek additional funding, or do you expect to be cash flow positive before that point?
I think what we have stated earlier also is that, we expect to be cash positive within 2027. Of course it depends on how many contracts we win. To add on to one of the questions here is that we also have a new client, another salmon slaughterhouse that we will get revenues from in second quarter this year. Then in the end, I think the success we have on sales will actually determine the time, the timeline, going forward, during when it comes to cash. We have not planned for any rise of capital as for today.
We are confident with the situation.
Okay. Thank you, Morten. One more question related to growth. You mentioned a goal of NOK 100 million to NOK 150 million in annual aquaculture revenues by 2028 to 2030. Can you please give us a sense of how many installations that would employ and how far along you are today in building that customer base?
We pointed out in the presentation of the two mandated slaughterhouses, they have chosen to implement our solutions. The third one, which is also mandated for the next step, they are currently receiving the equipment needed for operating our solutions. We expect them to be implemented within this year. Total installation that we target varies between 19-12 installations in Norway, which are representing approximately 80%-90% of the slaughtered volume of salmon.
Okay. Perfect. Thank you. Some questions here related to oil and gas and dredging. First of all, on the Saudi Arabia pilot, is there any visibility on when the field could reopen? I understand that it's very hard to for you to predict. Either way, do you have a new target execution window? Also, if the current situation remains unresolved, at what point does this sort of opportunity risk becoming stale?
First one first. What we have, we are continuously dialogue with the agent. They confirm that this national oil company will execute the pilot as soon as possible. When the plant is up and running, we will have our scheduled pilot. The reason for why the shutdown, that is because one of the streams from this field is going into the refineries on the east side of Saudi Arabia. One of this refinery was actually hit by some of the missiles from Iran. Hopefully, we think that during second quarter or third quarter, we will have executed this pilot.
Okay. Thank you. On METHA, when the pilot resumes in May, what is the specific timeline to completing the qualification process? What also further on to that, what would a successful outcome mean commercially in terms of contract size?
Once the pilot is finished and we have our findings from that pilot, we can go directly into commercial negotiations with the plant for implementation of the first production lines that they have. They have in total five production lines, two chamber filter press lines, and the three belt filter press. We will seek to implement this solution on the chamber filter press, firstly, as the first step. In total, we believe that there could be a potential upwards to around EUR 1.5 million annually, but we need to actually complete the pilot and look through the findings to see how much they will consume of our chemical and our solutions.
Perfect. Thank you. One final question here, related to pilots as well. Once you execute the pilots, should we expect any ramp up in costs while that happens?
No, not a large ramp up. When we start a pilot in for the METHA, it's not a large ramp up in cost. For some of the pilots going on in the Middle East, there will be some mobilization cost, but that's mainly related to our field engineers that will actually participate in the pilot. We have already sent down our NORWAFLOC products, and our partner, ETS, have already also sent down the equipment, which is still on site at that terminal. Some travel and cost and cost related to personnel being sent down there.
Okay. Perfect. Yeah, I think we've reached the end of the questions, so, thank you all for contributing and for participating, and thank you for letting us host your quarterly presentation. With that, I'll leave the word back to you, Tor Olav and Morten for some concluding remarks.
Thank you very much, Nicolai, and thank you very much to Fearnley for hosting this presentation. As always, you are always welcome to contact us directly for a presentation or a visit at our production facilities here in Bergen. Thanks, everyone.