(BFM Bourse) – The water desalination specialist is taking a break on Monday morning, a week after a remarkable arrival on Euronext Growth. With tensions over water resources, Osmosun is developing a promising topic.
Osmosun is taking a breather after a stormy debut on the stock exchange. The water desalination specialist’s share is now down 10% at €10.88 after starting the day at a high and peaking at +14.3% around 9.30am. On Friday, the company closed sharply higher by 20.74%, taking its gains to 86% in its first week as a listed company.
Despite this pause this Monday morning, Osmosun shares are still trading well above their initial price set at €6.50 for its IPO last Monday on Euronext Growth, a section dedicated to small and medium-sized companies.
Coping with water stress
It must be said that the company is developing a promising topic, namely the treatment of sea or brackish water to make it drinkable. Especially since water is a necessary resource for life, but unfortunately it is not infinitely expandable. Population growth and climate change are increasing pressure on existing water resources.
Several countries around the world are actually facing episodes of unprecedented heat. A temperature record was set in China this Sunday, and Europe, known for its mild climate, was not spared. Temperatures are rising in the Mediterranean region, with a heat wave expected in the southern part of France on Tuesday or Wednesday.
In this context, water stress is increasingly felt. Water stress describes a critical situation in which available water resources are less than demand. Mandarine Gestion recalls that “40% of drinking water globally is expected to disappear within 30 years due to global warming and pollution”.
In fact, the IME (Institute of Mechanical Engineers) reports that the need for water – to meet human demand for food – could reach 10 to 13.5 billion cubic meters per year by 2050, around three times the current amount.
In this context of water scarcity and risk of water scarcity, seawater desalination has indeed emerged as a preferred and abundant solution, as nearly 70% of the planet is covered by salt water. However, this process, proven for several decades, consumes a lot of energy and releases a significant amount of greenhouse gases.
And that’s where Osmosun comes in. The company has deployed a technology that removes salt and other impurities from sea or brackish water using reverse osmosis. This technology, which is used by most desalination plants in the world, consists of filtering the water under pressure, trapping the impurities so that only water molecules can pass through.
However, the device developed by Osmosun does not require batteries, which are usually used to store electricity when the sun goes out on cloudy days or when night falls. For Osmosun, which is the only company in the world to have mastered this patented innovation that allows units to manage random changes in available energy, this is a real technological feat.
Osmosun Group hopes to increase its turnover to more than 20 million euros in 2025 and to 48 million euros by 2027. Last year, the group achieved sales of 4.6 million euros. The company also aims to improve its profitability over the period and increase its adjusted Ebitda (gross operating income) margin from 4.3% in 2022 to more than 10% in 2025 to reach more than 20% in 2027.
Sabrina Sadgui – ©2023 BFM Bourse