Pryme N.V. - Q4 2022 trading update, update to the 2023
financial calendar, and new sales contracts
Rotterdam, 16 March 2023
Trading update
As the Pryme full year (“FY”) 2022 audit process is expected to be completed at a later stage,
Pryme N.V. has decided to provide the following preliminary estimates and unaudited figures
for Q4 and FY 2022:
• Q4 2022 and FY 2022 revenues of EUR 0 million as expected as the commercial
production from the Company’s first plant is only expected to commence in Q3 2023 as
previously communicated.
• Q4 2022 EBITDA loss of approximately EUR 1.4 million and FY 2022 EBITDA loss of
approximately EUR 4.5 million. The EBITDA figures are almost identical to the EBIT
figures as no material depreciation or amortization has started as production startup
has not yet taken place.
• Positive Q4 2022 cash flow of approximately EUR 0.7 million and positive FY 2022 cash
flow of approximately EUR 3.3 million. The breakdown of the Q4 and FY 2022 cash
flows is as follows:
o Q4 2022 cash outflow from investments of approximately EUR 8.4 million and
FY 2022 cash outflow from investments of approximately EUR 21.6 million.
o Q4 2022 cash outflow from operations1 of approximately EUR 1.4 million and
FY 2022 cash outflow from operations1 of approximately EUR 4.5 million.
o Q4 2022 positive cash flow from financing activities of approximately EUR 8.2
million and FY positive 2022 cash flow from financing activities of
approximately EUR 25.6 million. The main items for the FY 2022 figure are the
net cash flow from the equity increase through the 2022 private placement and
subsequent offering of approximately Euro 17 million and gross proceeds from
the sales and leaseback for plant equipment of around 8 million.
o Q4 2022 positive cash flow from changes in working capital1 of approximately
EUR 2.3 million and positive FY 2022 cash flow from changes in working
capital1 of approximately EUR 3.7 million.
• The outstanding spending on the Company’s first plant as of the end of 2022 is
estimated to amount to around EUR 9.7 which will largely be spent before the end of
Q2, 2023.
• Ending Q4 2022 cash balance of approximately EUR 11.5 million.
• Ending Q4 2022 equity balance of approximately EUR 39.7 million.
• The quarterly operational run-rate for cash spending amounted to approximately
EUR 1.4 million in Q4 of 2022. This is expected to increase to a quarterly run-rate level
of approximately EUR 2.8 million by the end of Q2 2023 before the commercial
production commences and the run rate is expected to improve.
• The Company has not yet received the EUR 2.3 million advance payment in
conjunction with the EU Horizon project. It is expected that this payment will be
received shortly.
1 Note that accrued expenses have not been deducted from the cash flow from operations. This is neutralized
by correcting for this through the effects of the accrued expenses on the changes in working capital.
The construction of the Company’s first plant, Pryme One, is on schedule and is expected to
be completed around the end of Q1 2023. This will be followed by a period of commissioning
until approximately the end of Q2 2023 with limited production of salable pyrolysis oil during
Q2 2023. It is estimated that commercial production will start in Q3 of 2023. This timeline is
unchanged from previous communications.
The Company has entered into two additional sales contracts with customers in Q1 2023. For
details see the appropriate section below.
Update to the 2023 financial calendar
Given this trading update, the Company has decided to update its financial calendar. Instead
of a separate Q4 earnings announcement, the Company will provide further information on
the Q4 and FY 2022 in conjunction with the publishing of the annual report. This will also
include a bridge from the Dutch GAAP based figures to IFRS as the company is planning to
convert from Dutch GAAP to IFRS.
Supply contracts with two additional customers with deliveries starting in 2026
Pryme N.V. has entered into two separate agreements to supply pyrolysis oil from its second
plant for deliveries starting 2026. These agreements are with leading companies in different
parts of the circular plastics value chain. The deliveries under these agreements will be
predominantly from Pryme’s contemplated second plant and cover around 1/6 of its capacity.
These supply contracts have a market-based pricing formula and are conditional upon the
timely construction of and production from this second plant.
These agreements are complementary to the existing supply agreement with the company’s
current main customer for pyrolysis oil from the company’s first plant and lead to a more
balanced customer portfolio for Pryme.
Pryme is excited about the strong customer demand for its products from various parts of the
value chain. At this stage, even before activities for the company’s second plant have
commenced, Pryme has entered into agreements to sell a significant portion of the output
from its first two plants. This is a solid indication of the market demand for Pryme’s leading
advanced recycling technology that enables circular polymers from residual plastic waste
streams that cannot be mechanically recycled.
This information is considered to be inside information pursuant to the EU Market Abuse
Regulation and is subject to the disclosure requirements pursuant to section 5-12 the
Norwegian Securities Trading Act.
This stock exchange announcement was published by René de Graaf, General Counsel at
Pryme N.V. on 16 March 2023 at 08:00 hours CET on behalf of the Company.
About Pryme | www.pryme-cleantech.com
Pryme N.V. is an innovative cleantech company focused on converting plastic waste into
valuable products through chemical recycling on an industrial scale. Its efficient and scalable
technology is based on a proven pyrolysis process that has been further developed and
enhanced with proprietary characteristics.
The company is currently building its first plant in the port of Rotterdam, with an initial
annual intake capacity of about 40,000 metric tons, which will start production in 2023