Q2 2026 Keo Capital AB Earnings Call
Speaker #1: Presenterar sin delårsrapport samt de ledningsförändringar bolaget gjort och kommer att göra under året. Som vanligt, när vi sänder live kan ni som tittar live ställa era frågor, och det gör ni då i chatten.
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Speaker #1: So, it's a great pleasure to welcome back Roberto Marchioro, Chief Operating Officer. And a warm welcome to Pablo Ribas, Chief Executive Officer, I should say.
Speaker #1: Miles Molyneux, CFO, and David Tomasino, CEO for Keo Energy. Hello boys, nice to see you. Roberto, it's been yet another very busy quarter, so please take it away.
Speaker #1: So, it's a great pleasure to welcome back Roberto Macchioro, Chief Operating Officer, and a warm welcome to Pablo Ribas, Chief Executive Officer, I should say.
Speaker #2: Hi Carlos, thank you. Thank you very much. Good morning, everyone, and thank you for joining us. Welcome to Keo Capital's second part of 2026.
Speaker #2: We're in presentation. Today we want to our results of the quarter, and we will leave a time for a quick discussion at the end.
Speaker #1: Miles Molyneux, CFO, and David Tommasino, CEO for Keo Energy. Hello, boys. Nice to see you. Roberto, it's been yet another very busy quarter, so please, take it away.
Speaker #2: So, before we get into the numbers, let me introduce today the presenters and take a moment also to welcome our new management team to the company, so I'm Roberto Marchiori, the COO of Keo Capital AB.
Speaker #2: Hi, Carlos. Thank you. Thank you very much. Good morning, everyone, and thank you for joining us. Welcome to Q4, this second part of 2026.
Speaker #2: We have Pablo Ribas, the CEO, we have also Miles Molyneux, the CFO, and David Tomasoni, the CEO of Keo Energy. Welcome, guys.
Speaker #3: Thank you.
Speaker #4: Thank you. Love you being here.
Speaker #2: Now let's move into the fintech operational update. So, starting with this update of our products and solutions across our fintech business, on the cross-border solution, which is the US dollar denominated platform, it's already live in the United States.
Speaker #2: As you can imagine, the United States has a broad spectrum of global merchants. We are also live in Peru, Bolivia, Chile, Colombia, and Brazil, spreading Latin America and, if you also have many, many importers in this region of Latin America.
Speaker #2: Moving to our Keo Canada, which operates in Canadian dollars, we just signed a facility at the same time lounge operations during the third quarter, and we expect a ramp-up over the coming quarters as once we start creating the team and putting more effort in the platform.
Speaker #2: On our Keo Max 2, which operates max business in US dollars, we concluded the renew of our license agreement with American Express, our long-term partnership with this global rail company.
Speaker #1: It operates in Canadian dollars. We just signed a facility and, at the same time, launched operations during the third quarter. We expect a run-up over the upcoming quarters as we start creating the team and putting in more effort on the platform.
Speaker #2: And finally, our Keo Brazil, which operates in Brazilian reais, we expect to launch during the third quarter of this year, which the operations ramp-up, of course, we expect to ramp up during the fourth quarter and also first quarter next year.
Speaker #1: Over Q2 Max, which operates Max on a basis in US dollars, we concluded the renewal of our license agreement with American Express, our long-term partnership with this global rail company.
Speaker #2: 2027. Just a quick recap here on our geographies and footprint. We are located and which product is enabling each region. On our Keo side, our supply chains finance product, we are live in Mexico.
Speaker #1: And finally, with Q Brazil, which operates in Brazilian reais, we expect to launch during the third quarter of this year. With the operations ramp-up, of course, we expect that to continue during the fourth quarter and also into the first quarter next year.
Speaker #2: We just launched in Canada, like I just told you in the previous slide. And we expect to launch Brazil in the next in this quarter of 2026.
Speaker #1: 2027. Just a quick recap here on our geographies and footprint: we are located in. Which product is enabled in each region. We're Q on our Q side, our supply chain finance product, we are live in Mexico, we just launched the.
Speaker #2: On the cross-border solution side, we are already live in the United States, Peru, Bolivia, Chile, Colombia, and Brazil, to benefit on this cross-border transactions.
Speaker #2: Of importance. Moving to the next slide, here we bring more about customer evolution. So just a reminder that the closing occurred during the month of April, in the beginning of the second quarter, when the business combination took effect.
Speaker #1: Like I just told you in the previous slide, we expect to launch Brazil in this quarter of 2026. On the cross-border solution side, we are live in the United States, Peru, Bolivia, Chile, Colombia, and Brazil, to benefit from these cross-border transactions.
Speaker #2: During the beginning of the year, we have been focusing on developing our products, technology, and creating the foundations for sustainable growth, aligned with our strategy.
Speaker #1: Of importance. Moving to the next slide. Here, we bring more about customer evolution. Just a reminder that the closing occurred during the month of April, at the beginning of the second quarter, when the business combination took effect.
Speaker #2: So during the second quarter, our average customers grew 16% part of the quarter, and we ended June with a 61 active customers. Our focus today is on keep optimizing onboarding process for new clients and also so we can ramp up our products with more efficient.
Speaker #1: During the beginning of the year, we have been focusing on developing our products and technology, and creating the foundations for sustainable growth aligned with our strategy.
Speaker #1: So during the second quarter, our average customers grew 16% quarter over quarter, and we ended June with 61 active customers. Our focus today is on optimizing the onboarding process for new clients, so we can continue this growth.
Speaker #2: Moving to the next slide and talking more about the average outstanding portfolio. So during the second quarter, we saw a recurring cycle effect early in the quarter, so as the clients were renewing their credit lines with recovery during the months of May and June.
Speaker #1: Our products with more efficiently. Moving to the next slide and talking more about the average outstanding portfolio, so during the second quarter we saw a recurring cycle effect early in the quarter, so as the clients were renewing their credit lines with recovery during the months of May and June, and looking at the end of the quarter position in June, our total portfolio was 50.7 million dollars, as the average was around 45 million dollars.
Speaker #2: And looking at the end of the quarter position in June, our total portfolio was 50.7 million dollars, as the average was around 45 million dollars.
Speaker #2: Moving to the next page, talking about total payment volume, the TPV. The total payment volume is the amount of the customer base transacting during the period and paying their invoices inside our platforms using our credits.
Speaker #2: So our total payment volume kept growing for the recorder, reaching 51.4 million dollars during the second quarter, a 19% increase for the recorder. And close to 40% growth year over year, compared to Q2 last year.
Speaker #1: Moving to the next page, talking about total payment volume—the TTV. The total payments volume is the amount that the customer base is transacting during the period.
Speaker #1: In their invoice inside our platforms, using our credits. So our total payment volume kept growing quarter over quarter, reaching $51.4 million during the second quarter, a 19% increase quarter over quarter.
Speaker #2: This aligned for customer base growth rate indicates that we are expanding our businesses. And during 2026, we reached a total TPV volume of 94.5 million dollars, and if you look at the last 12 months basis, we reached almost 200 million dollars in volumes.
Speaker #1: And close to 40% growth year over year, compared to Q2 last year. This aligned customer base growth rate indicates that we are expanding our businesses.
Speaker #2: Keep in mind that the business combination closed as of second quarter of this year, early April, so these figures blend pre and post-closing periods.
Speaker #1: And during 2026, we reached a total TPV volume of $94.5 million. If you look at the last 12 months' basis, we reached almost $200 million in volumes.
Speaker #2: And going to the next slide, the total portfolio revenue. So let's talk about revenue and the take rate CPI that we are showing this page.
Speaker #1: Keep in mind that the business combination closed as of the second quarter of this year, in early April, so this figure blends pre- and post-closing periods.
Speaker #2: Revenue basically comprises all the income streams for our instance interest rates, interchange fees by transacting payments to the networks of the rail companies, and also other fees.
Speaker #1: And going to the next slide, the total portfolio revenue—so let's talk about revenue and the take rate KPI that we are showing on this page.
Speaker #2: And the take rate is basically the amount of this revenue divided by the amount of the payment volume, so the TPV. During the same period, representing our total average income over the amount of transactions occurred by our customers during the period.
Speaker #1: Revenue basically comprises all the income streams. For instance, interest rates, interchange fees by transacting payment to the networks of the rail companies, and also other fees.
Speaker #2: So basically, the take rate is the portion of each transaction that stays with us at Keo. During the second part of 2026, we presented 1.6 million dollars in revenue.
Speaker #1: And the take rate is basically the amount of this revenue divided by the amount of the payment volume, so the TPV, during the same period.
Speaker #1: Representing our total average income over the amount of transactions occurred by our customers during the period. So basically, the take rate is the portion of each transaction that stays with us here.
Speaker #2: We average take rate of 3.1% on the TPV volume. During the first half of the year, the total proforma revenue reached 3 million dollars, and the last 12 months, around 5 million dollars.
Speaker #1: During the second quarter of 2026, we presented $1.6 million in revenue, with our average take rate of 3.1% on the TPV volume. In the first half of the year, the total pro forma revenue reached $3 million, and the last 12 months, around $5 million.
Speaker #2: Remember, these numbers are basically considering pre-transaction fuel balance sheet and post-transaction Q2, the former company. Our new focus right now is also launching new programs to also provide support of revenue expansion going forward.
Speaker #1: Remember, these numbers are basically considering the pre-transaction fuel balance sheet and post-transaction Q2 of the former company. Our new term focus right now is also launching new products to provide support for revenue expansion going forward.
Speaker #2: So by launching Canada and Brazil, we expect to see this effect in the upcoming quarters. So with that, I will handle now David Tomassoni to walk through the Venezuela slides on Keo Energy.
Speaker #3: Thank you so much for having me today. So I think the most important points here that we need to discuss, that we completed the purchase of 24% from Noveno and that we are purchasing price of a 16% for about 37.5 million USD.
Speaker #1: So, by launching Canada and Brazil, we expect to see this effect in the upcoming quarters. So with that, I will now hand it over to David Tomassoni to walk through the Venezuela slides on Q Energy.
Speaker #1: Updates.
Speaker #2: Thank you so much for having me today. So I think the most important points here that we need to discuss are that we completed the purchase of 24% from NovoNord, and then we are purchasing a further 16% for about $37.5 million USD.
Speaker #3: Which would take us to about 40% equity of EU petrol donator. We have a contingent payment of 18 million with an enforcement of first option called from Noveno.
Speaker #3: August 28, we signed a major contract, which is an operational agreement with the OG commercializations, which defined the marketing sales commercialization gas productions and also we have a great news because we were able to add the associated gas to this new contract, which before was not included.
Speaker #2: Which would take us to about 40% equity of EU Petrol Donator. We have a contingent payment of $18 million with an enforcement of first option call from NovoNord.
Speaker #2: On August 28, we signed a major contract, which is an operational agreement that defines the OG commercializations, including marketing, sales, commercialization, and gas production. We also have great news, because we were able to add the associated gas to this new contract, which was not included before.
Speaker #3: In terms of a new negotiation we were able to include an income tax 34% of Greenfield versus the 50%, and we have an extension of JV to also an extra 9.9 of equity, which will be take our stakes up to 49.9%.
Speaker #2: In terms of a new negotiation, we were able to include an income tax of 34% for Greenfield, versus the previous 50%, and we have an extension of the JV to 2056.
Speaker #3: This is an ongoing conversation with PDVSA. And I give it back to you guys, to Roberto, and Maya.
Speaker #2: So we are negotiating also an extra 9.9% of equity, which will take our stake up to 49.9%. This is an ongoing conversation with PDVSA.
Speaker #2: Thank you, David.
Speaker #4: Excellent. So go ahead.
Speaker #3: Thank you, Davide. Before we get into the numbers, let me explain a little bit how they were built. The figures on the next few slides are proforma figures, pre-acquisition basis with the prior Maja Capital figures, plus the results of the combined entity post-acquisition.
Speaker #2: And with that, I give it back to you, Roberto and Maya.
Speaker #1: Thank you, David. Excellent. So, go ahead.
Speaker #2: Thank you, David. Before we get into the numbers, let me explain a little bit how they were built. The figures on the next few slides are pro forma figures, consolidating Key Overworld on a pre-acquisition basis with the prior Maha Capital figures, plus the result of the combined entity post-acquisition.
Speaker #3: These proforma numbers are not reflected in Keo's official financial statements. They're presented just for illustrative purposes to help explain the trends and business performance irrespective of the capital transaction that took place in April.
Speaker #2: These pro forma numbers are not reflected in Keo's official financial statements. They are presented just for illustrative purposes to help explain the trends and business performance, irrespective of the capital transaction that took place in April.
Speaker #3: So picking up the top on the top on revenue, as we covered in the fintech section, revenue came in at 1.597 million, which was up 12% quarter over quarter and 16% year over year.
Speaker #2: So, picking up on the top line revenue, as we covered in the fintech section, revenue came in at $1.597 million, which was up 12% quarter over quarter and 16% year over year.
Speaker #3: And this was driven by higher credit volume and growth in the portfolio. On the operating expense side, which are the direct expenses related to managing the portfolio, we came in at 2.549 million dollars, which is up 60% quarter over quarter.
Speaker #2: This was driven by higher credit volume and growth in the portfolio. On the operating expense side, which includes the direct expenses related to managing the portfolio, we came in at $2.549 million, which is up 60% quarter over quarter.
Speaker #3: And that reflects the post-acquisition ramp-up of our operations across several geographies, as well as higher payment volume. Go to the next slide. Moving to general and administrative expenses, recurring GNA in the second quarter was 2.177 million, while total GNA was 4.5 million.
Speaker #2: And that reflects the post-acquisition ramp-up of our operations across several geographies, as well as higher payment volume. Go to the next slide. Moving to general and administrative expenses, recurring G&A in the second quarter was $2.177 million, while total G&A was $4.5 million.
Speaker #3: The difference between the two of 2.323 million is non-recurring expenses. Which is mainly due to the relisting and acquisition costs, as well as the Venezuela transaction.
Speaker #2: The difference between the two, of SEK 2.323 million, is non-recurring expenses, which is mainly due to the relisting and acquisition costs, as well as the Venezuela transaction.
Speaker #3: On the financial income, we came in at 1.594 million, and this is primarily the net interest income from the investment of our cash in the balance sheet.
Speaker #2: On financial income, we came in at $1.594 million, and this is primarily the net interest income from the investment of our cash in the balance sheet.
Speaker #3: And that quarter for amount reflects the investment of the or I'm sorry, quarter one amount, the 2.85 million, was the interest income from the old Maja prior to the deal.
Speaker #2: And that quarter for amount reflecting investment of the—or I'm sorry, Q1 amount, the $2.85 million, was the interest income from the old MAHA prior to the deal.
Speaker #3: The next slide is a year-to-date progression review, while our accumulated net loss for the year so far was 48.9 million, a significant portion of that, 45.358 million, is non-cash.
Speaker #2: The next slide is a year-to-date progression review. While our accumulated net loss for the year so far was $48.9 million, a significant portion of that—$45.358 million—is non-cash.
Speaker #3: And that was due to stock-based compensation expense co-investor share issuance and other non-cash impacts. Obviously, these consumer accounting profit, though don't present represent an actual cash outflow.
Speaker #2: And that was due to stock-based compensation expense, co-investor share issuance, and other non-cash impacts. Obviously, these consume accounting profit, though they don’t represent an actual cash outflow.
Speaker #3: If we remove those non-cash items and also remove the non-recurring GNA that we showed on the previous slide, which was 3.54 million, we reach a break-even level year-to-date of just over just over break-even of 5,000.
Speaker #2: If we remove those non-cash items and also remove the non-recurring G&A that we showed on the previous slide, which was $3.54 million, we reach a break-even level year-to-date of just over break-even—just over $5,000.
Speaker #3: I want to be explicit that this adjusted figure is not a gap measure. This is distinct from our statutory year-to-date net result of the 48.901 million.
Speaker #2: I want to be explicit that this adjusted figure is not a GAAP measure. This is distinct from our statutory year-to-date net result of 48.901 million.
Speaker #3: Turning to cash flow, we started the period with 117.7 million in cash plus credits. Operating cash flow was negative 17.7 million, which was driven primarily by working capital changes, the net operating result, as well as interest expense and FX.
Speaker #2: Turning to cash flow, we started the period with SEK 117.6 million in cash plus credits. Operating cash flow was negative SEK 17.7 million, which was driven primarily by working capital changes, the net operating results, as well as interest expense and FX.
Speaker #3: Investing cash flow was positive 9.4 million, including 9.1 million of cash generated from the business combination. And financing cash flow was positive 14.1 million, largely due to a capital raise priced at 16 kroner per share as part of the deal the transaction that closed in April.
Speaker #2: Investing cash flow was positive SEK 9.4 million, including SEK 9.1 million of cash generated from the business combination. Financing cash flow was positive SEK 14.1 million, largely due to a capital raise priced at SEK 16 per share as part of the transaction that closed in April.
Speaker #3: We closed the period with 123.5 million in cash, credits, and restricted cash, and a net cash position of 108.5 million, after the co-investor loan, which includes the 50.7 million of customer receivables portfolio that Roberto showed earlier.
Speaker #2: We closed the period with $123.5 million in cash, credits, and restricted cash, and a net cash position of $108.5 million after the co-investor loan, which includes the $50.7 million of customer receivables portfolio that Roberto showed earlier.
Speaker #3: With that, I'll hand it back to Roberto for some closing remarks.
Speaker #2: Thank you, Miles. So going to closing remarks, so basically on the left side of the page, we have here our achievements of the first half of the year.
Speaker #2: With that, I'll hand it back to Roberto for some closing remarks.
Speaker #1: Thank you, Miles. So, going to closing remarks, basically, on the left side of the page, we have here our achievements for the first half of the year.
Speaker #2: On the fintech side, we completed the releasing process. We completed the capital raise of 28 million dollars at 16 Swedish pounds per share. We closed the business combination with Q World.
Speaker #1: And on the fintech side, we completed the releasing process. We completed the capital raise of $28 million at 16 Swedish crowns per share.
Speaker #2: We also closed the facility of 50 million dollar Canadian dollar to support Canada growth. And we also launched working in Canada. On the energy side, we exercised the first call option of Petra Danesa.
Speaker #1: We closed the business combination with Q World. We also closed the facility of 50 million Canadian dollars to support Canada growth. And we also launched Where Q in Canada.
Speaker #1: On the energy side, we exercised the first call option of Petra Danesa. Then we reached the mining agreement to increase our stakes up to 40% at the JV level.
Speaker #2: Then we reached the binding agreement to increase our stake up to 40% at the JV level. And also the final agreement with the Visa just signed in the last couple of days with the support here of David.
Speaker #1: And also the final agreement with PDVSA, just signed in the last couple of days with the support here of David. What's about to come—next steps on the fintech business—as we mentioned, we are about to launch Brazil, where Q platform, hopefully, this month.
Speaker #2: What's about to come in next steps on the fintech business, as we mentioned, we are about to launch Brazil working platform, hopefully this month.
Speaker #2: On the energy side, we expect to sign the off-take agreement with the Visa issue the reserve report in this next month. And that this additional gas reserves that David was mentioning, and a second an update of the reserve reports.
Speaker #1: On the energy side, we expect to sign the off-take agreement with PDVSA, issue the reserve report in this next month, and add these additional gas reserves that I was mentioning, and second, an update of the reserve reports.
Speaker #2: On the corporate side, we continue working with the spin-off and also the US listing. Again, once we are now to American leadership, we want to also be a fully American company.
Speaker #1: On the corporate side, we continue to work with the spin-off and also the US listing. Again, once we move to American leadership, we want to also be a fully American company. On the fintech side, after we conclude the spin-off of the energy side, we also intend to list the fintech business in the United States.
Speaker #2: And on the fintech side, after we conclude the spin-off of energy side, we also intend to list the fintech business in the United States.
Speaker #2: So if that's how I conclude here our presentation, and open the room for the Q&A session.
Speaker #1: So with that, I will conclude our presentation and open the floor for the Q&A session.
Speaker #1: Well, thank you for that, gentlemen. There have been a lot of questions ahead of this presentation. And as we speak, the viewers are sending in their questions.
Speaker #3: Well, thank you for that, gentlemen. There have been a lot of questions ahead of this presentation, and as we speak, the viewers are sending in their questions.
Speaker #1: And as I said, I would try to keep questions slightly put together with Keo Capital and energy and then perhaps a P&L question. So I will start with, let's say, a P&L question.
Speaker #3: And as I said, I would try to keep questions slightly put together with Keo or capital and energy and then perhaps a P&L question.
Speaker #3: So I will start with, let's say, a P&L question. So I will read one viewer here: the Swedish krona sixteen raises were struck at a premium to the current price.
Speaker #1: So I will read one viewer here. The Swedish krona 16 raises were struck at the premium to the current price. With a 4 million per quarter underlying burn rate, burn, and the 27.5 million Venezuela step-up due around on November close, what's the expected cash position at year end?
Speaker #3: With a $4 million per quarter underlying burn rate, and the $27.5 million Venezuela step-up due around the November close, what's the expected cash position at year-end?
Speaker #3: And should shareholders expect further raises before the fintech turns cash generative? So, basically, it's a question of raising capital here before year-end.
Speaker #1: And should shareholders expect further raises before the fintech turns cash generative? So basically, it's a question of raising capital here before year end.
Speaker #1: Okay. So, we will not give guidance based on the position at year-end, but the idea is, once we were explaining the initiative in Venezuela, to look for the best alternatives when it comes to finding the resources for the payments to Novo Nordisk by the end of the year.
Speaker #2: Okay. So we will not give guidance by the position of year end, but the idea is once you are explaining the initiative in Venezuela is to look for the best alternatives when it comes to finding the resources for the payments turnover by the end of the year.
Speaker #1: And also, remember that on the oil field side, David can talk more as well. But we don't expect a huge amount of capital calls in the first month.
Speaker #2: And also remember that the on the oil field side, David can talk more also. But we don't expect a huge amount of capital policy in the first month.
Speaker #1: So we will have more time to work with the best solution. I don't know, David, if you want to complement.
Speaker #2: So we will have more time to work the best solution. I don't know, David, if you want to complement.
Speaker #2: Yes, definitely. As Roberto said, I think I'm aligned with you on this aspect.
Speaker #3: Yes, that really has Roberto said. So I think I'm aligned with you in this aspect.
Speaker #1: Good.
Speaker #3: Mm-hmm. Well, thank you for that. And then if we look at your outstanding portfolio, it declined slightly, I would say, but it declined from $49.8 million in the first quarter to $45.6 million.
Speaker #2: Good.
Speaker #1: Well, thank you for that. And then if we look at your outstanding portfolio, it declined slightly, I would say, but it did decline from a million US dollars 49.8 in the first quarter to 45.6.
Speaker #3: So the main question, I think, from the writer here is: has your expansion halted, or how should we view this—well, this temporary setback?
Speaker #1: So the main question, I think, from the writer here is, has your expansion halted or how should we view this well, this temporary setback?
Speaker #1: Sure. Well, that's a good question. Thank you, Carl. And that's why we put a new KPI for the investors—to better understand these cycles we have inside this, right?
Speaker #2: Well, that's a good question. Thank you, Carl. And that's why we included a new KPI, for the investors to better understand the cycles we have inside this, right?
Speaker #1: Because the right way of looking at this is also supporting the KPIs of your active customers, and also your TPV volumes trend.
Speaker #2: Because the right way of looking at this is also supporting the KPIs of your active customers and also your TPV volumes trend. Because we have inside our businesses, the cycles.
Speaker #1: Because we have inside our businesses the cycles. So normally, your clients can pay you their credits by the end of the month. So by then, you experience this reduced amount under the outstanding credit portfolio.
Speaker #2: So normally, your clients can pay your their credits by the end of the month. So by then, you will experience this reduced amount under the outstanding credit portfolio.
Speaker #1: But if you look at it compared to the other KPIs, we are going to understand the trend now, as we are working hard here on establishing technology, the foundations, the procedures.
Speaker #2: But if you look at it compared to the other KPIs, we are going to understand of the trend now as we are working hard here on establishing technology, the foundations, the procedures, but also working on the relation to customers.
Speaker #1: But also working on the relation to customers, and we see this growth trend here for the next quarters.
Speaker #2: And we see this growth trend here for the next quarters.
Speaker #3: Mm-hmm. Thank you for that. And we continue here with KO Capital then. How much of the Canadian $50 million in the credit facility has been drawn to date?
Speaker #1: Thank you for that. And we continue here with Keo Capital then. How much of the Canadian 50 million in the credit facility has been drawn to date?
Speaker #1: We just launched Canada. We have started building relationships with customers. We are building the team organization, so everything is being set for the next quarter to come.
Speaker #2: So we just launched Canada. We are going to have started building relationship with customers. We are building the team organization. So everything is being set for the next quarter to come.
Speaker #1: So, as of now, we are working to establish everything to start growing. Remember that in this facility, we withdraw 80% in advance on each credit line that we provide for customers.
Speaker #2: So as of now, we are working to establish everything to start growing and remember that in this facility, we withdraw 80% in advance to each credit line that we provide for customers.
Speaker #3: And there's a follow-up question here. Would you be able to give us, well, a number—which I would assume would be growing—but the number of Canadian customers onboarded and approved for credit?
Speaker #1: And there is a follow-up question here. Would you give us a well, a number which I would assume would be growing, but the number of Canadian customers onboarded and approved for credit?
Speaker #1: We have a pipeline in place. We cannot disclose it right now, but in the next quarter, we'll be happy to do so. Again, we expect to see activities and growth in the next quarters.
Speaker #2: We have a pipeline in place. We cannot disclose right now, but in the next quarter, we're happy to do so. But again, we expect to see activities and growth in the next quarters.
Speaker #3: Mm-hmm. And if we turn our eyes to Brazil—also a viewer question here—how many companies are currently onboarded and approved for the credit and actively, actively transacting, I should say?
Speaker #1: And if we turn our eyes to Brazil, also a viewer question here. How many companies are currently onboarded and approved for the credit and actively transacting, I should say?
Speaker #1: In Brazil, we haven't launched yet, right? We expect to launch Brazil during this quarter, so by the end of this month, September.
Speaker #2: In Brazil, we didn't launch yet, right? We expect to launch Brazil or Q3 this quarter. So by the end of this month, of September.
Speaker #1: And once we are live again, we are putting in place a team. We are creating all the foundations—the technology side—and we expect to release more figures over the course of next quarter.
Speaker #2: And once we are live again, we are putting in place a team. We are creating all the foundations, the technology side, and we expect to release more figures by the course of next quarter.
Speaker #3: Mm-hmm. And I will combine two questions here. One is if you could give us more color of the portfolio and any estimates of the year end.
Speaker #1: And I will combine two questions here. One is if you could give us more color of the portfolio and any estimates of the year end.
Speaker #3: And I will combine that with a question here that I will translate from Swedish, which is: What kind of portfolio size do you need to get to sustainable break-even for the fintech?
Speaker #1: And I will combine that with a question here that I will translate from Swedish, which is, what kind of portfolio size do you need to get the sustainable break-even for the fintech?
Speaker #1: Sure. Look, like I told you on the previous slides, we just launched Canada during Q3. We are about to launch Brazil. These are two important pillars to start growing our strategy across different markets.
Speaker #2: Sure. Well, like I told you on the previous slides, we just launched Canada. Doing Q3, we are about to launch Brazil. These are two important pillars to start growing our strategy across different and huge markets in Latin America and Americas.
Speaker #1: And huge markets in Latin America and the Americas. And we are also working on the cross-border solution in parallel.
Speaker #3: Mm-hmm.
Speaker #1: So we see here a lot of potential, but we cannot give guidance by the end of the year. In the meantime, I think we already did this back-of-the-envelope math, right, using four numbers.
Speaker #2: And we also are working on the cross-border solution parallel. So we see here a lot of potential, but we cannot give guidance by the end of the year.
Speaker #2: In the meantime, I think we already did this pack of envelope maps, right, using imported for numbers. If you reach around 120 million dollars portfolio, this will mean revenue generation capacity between 25, 30 million dollars, which will provide us to be in a profitable position.
Speaker #1: If you reach around a $120 million portfolio, this will mean revenue generation capacity between $25 million and $30 million, which will provide us the ability to be in a profitable position.
Speaker #3: Mm-hmm, right. Thank you for that. And then we have some questions about Lionheart. Could you elaborate on why you did not renew your exclusivity with Lionheart?
Speaker #1: Right. Thank you for that. And then we have some questions about Lionheart. So could you elaborate on why you did not renew your exclusivity with Lionheart?
Speaker #3: Yes, go ahead.
Speaker #2: Thank you, Carlos, for the question. So jointly, we are ending the LOI, the binding LOI, with Lionheart because I'm adding the gas to our commercial agreement to increase a lot our valuation.
Speaker #1: Yes, go ahead.
Speaker #3: Thank you, Carlos, for the question. So jointly, we ending the LOI, the binding LOI with Lionheart because I'm adding the gas to our commercial agreement to increase them a lot our valuation.
Speaker #2: So, on our valuation prospect, we are now aligned. We need to protect our investors, and that's the reason why we have decided to probably offer a direct listing and a spin-off from the NASDAQ in Sweden.
Speaker #3: So our valuation prospect we are now aligned. So we need to protect our investors and that's the reason why we decide probably to opt for a direct listing and a spin-off from the NASDAQ.
Speaker #3: Mm-hmm. Thank you for that. And while we’re at it with KO ENERGY here, you have mentioned the expected reserve report in the second half here.
Speaker #3: In Sweden.
Speaker #1: Thank you for that. And while we're at it with Keo Energy here, you have mentioned the expected reserve report on the second half here.
Speaker #3: And would you be able to pinpoint more granularly?
Speaker #2: Yes, so we are actually doing two reserve reports. The first one is on the crude, which should be out in the next two to three weeks.
Speaker #1: And would you be able to pinpoint more granular?
Speaker #3: Yes. So we are doing actually two reserve reports. So the first one is on the crude, which should be out in the next two, three weeks.
Speaker #2: And then we are adding the reserve report on the gas, which will be out by the end of the year.
Speaker #3: Mm-hmm. And further on the energy side here, I would just read a question right off. Is it right to assume that the deal signed with PDVSA has de-risked KO ENERGY in your mind and thus improved the intrinsic value?
Speaker #3: And then we are adding the reserve report on the gas, which will be out by the end of the year.
Speaker #1: And further on the energy side here, I would just read a question right up. Is it right to assume that the deal signed with PDVSA has de-risked Keo Energy in your mind and thus improved the intrinsic value?
Speaker #3: And I can see why that question is coming. So, could you answer?
Speaker #2: Absolutely. I mean, absolutely. You know, first of all, actually, we had an expansion. So, our new signed agreement takes us to 2056. So, we have 30 years in the pipeline to be able to execute this contract.
Speaker #1: And I can see why that question is coming. So could you ask us?
Speaker #3: Absolutely. I mean, absolutely. You know, first of all, actually, we had an extension. So our new signed agreement take us to 2056. So we are 30 years in pipeline to be able to execute this contract.
Speaker #2: And so we are very optimistic about our return and, you know, the reserve that we have.
Speaker #3: Mm-hmm. And I would assume this would be a follow-up question, but it's also about the divestment here. When do you expect to be able to communicate, let's say, the intrinsic value of KO ENERGY, which I believe then would be a spin-off?
Speaker #3: And so we are very optimistic about our return and our you know, the reserve that we have.
Speaker #1: And I would assume this would be a follow-up question, but it is also about the divestment here. But when do you expect to be able to communicate, let's say, the intrinsic value of the Keo Energy, which I believe then would be a spin-off?
Speaker #3: What what's the process there?
Speaker #2: Yes. Probably now, you know, we're approaching very big banks here in the United States that will allow us to walk through the spin-off in the US.
Speaker #1: What's the process there?
Speaker #3: Yes, probably now, you know, we're approaching very big banks here in the United States that will allow us to walk through the spin-off in the US.
Speaker #2: We've been approached for the two stocks to change here, so we are evaluating the best packaging for us. And so, we consider probably six to seven months to be able to be listed here in the United States.
Speaker #3: We've been approached for the two stocks to change here. So we are evaluating the best packaging for us. And so we consider probably six months to seven months to be able to be listed here in the United States.
Speaker #2: And then, you know, I believe in the next 30 to 40 days, we will have a great report that will allow us to give a great valuation about the KO ENERGY.
Speaker #3: Mm-hmm. And how do you aim to fund the remaining part of the purchase price in Venezuela? Do you see a risk of another capital raise?
Speaker #3: And then, you know, I believe in the next 30, 40 days, we will have a great report that will allow us to give a great valuations about the Keo Energy.
Speaker #1: And how do you aim to fund the remaining part of the purchase price in Venezuela? Do you see a risk of another capital raise while you have answered a general capital raise?
Speaker #3: Well, you have answered a general capital raise. So, what's the thinking there?
Speaker #2: No, we we are okay with the the capitals at this stage. We are we have the capital needed to conclude the 40% purchase. And obviously, you know, we are we've been bombarded, if I can say the word, to people that want to invest and entities to allow us to get where we want to be in term of production of crude and gas.
Speaker #1: So what's the thinking there?
Speaker #3: No, we are okay with the capitals at this stage. We have the capital needed to conclude the 40% purchase. And obviously, you know, we've been bombarded, if I can say the word, to people that want to invest and entities to allow us to get where we want to be in terms of production of crude and gas.
Speaker #3: Mm-hmm. And what would be the capital allocation priority still with Venezuela here—between further increasing ownership, field redevelopment, and preparing for the spin?
Speaker #1: And what would be the capital allocation priority still with Venezuela here? Between. Further increasing ownership, field redevelopment, and preparing for the spin listing?
Speaker #2: I mean, we are something new. Our idea is to reactivate probably the majority of the wealth. So, and we have to see the gas.
Speaker #2: So we are planning probably an investment of around $90 to $150 million for the next 10 months.
Speaker #3: I mean, we are assuming in our idea is to reactivating probably the majority of the wealth. So and you would associate gas. So we are planning probably an investment around 90 to 150 million dollars for the next 10 months.
Speaker #3: Mm-hmm. And then, if we have a general question regarding listing here, would the NASDAQ listing be in Sweden or in the US?
Speaker #2: It will probably be a cross-listing or a dual listing. We are evaluating the best option for our investors.
Speaker #1: And then if we have a general questions regarding listing here, would the NASDAQ listing be in Sweden or in the US?
Speaker #3: Mm-hmm.
Speaker #2: So they can jointly, you know—we also, we have, you know, all the investors here in the United States. We like to have the possibility to acquire and purchase stocks.
Speaker #3: Probably it would be across listing or the dual listing. We are evaluating the best option for our investors. So they can jointly also we have all the investors here in the United States.
Speaker #2: So we'll be both, probably. We maintain both listings.
Speaker #3: Mm-hmm. Then a more general, let's say, strategic question here. Considering the recent macro events, combined with, well, KO entering the stage here, where you have war, inflation fears, currency fluctuation, local currency strength versus the US—has that in any way affected your strategy, or is it, I mean, you're working according to plan?
Speaker #3: We like to have possibility to acquire and purchase stocks so we'll be both probably we maintain both listing.
Speaker #1: And then a more general let's say strategic question here. Considering the recent macro events combined with well, Keo entering the stage here, where you have war inflation fears, currency fluctuation, local currency strength versus the US, has that in any way affected your strategy or is it I mean, you're working according to plan?
Speaker #2: Everything goes according to plan. I mean, honestly, it doesn't affect a lot in our strategy, so everything will be ahead as we plan it.
Speaker #2: Actually, we are very excited because, you know, you're paying an extension. We include the gas, which previously was not included. It's in the long term.
Speaker #3: Everything goes according to plan. I mean, honestly, it doesn't affect a lot in our strategy. So everything moving ahead as we plan it. Actually, we are very excited because, you know, we obtained an extension.
Speaker #2: It's going to be extremely much more valuable, probably by the crude, because we have two different gases—you know, the solid gas and the SSA gas.
Speaker #2: We have liquid, so our GNL, which will allow us to improve our customer base and the return.
Speaker #3: We include the gas, which previously was not included within the long term. It's going to be extremely much more value probably by the crude because we have two different gas.
Speaker #3: Yeah. And, if we look to Keo Capital here, if we look at the recent, well, developments for the last six months and so on, has that in any way affected your, well, first, supply, EI, the borrowing, and what's the, let's say, what's the customer, the buying environment out there?
Speaker #3: You know, the solid gas and SSA gas that we have liquid. So our GNL. So which will allow us to improve our customer base.
Speaker #1: Yeah. And if we look to Keo Capital here, if we look at the recent well, development for the last six months and so on, has that in any way affected your well, first, supply, EI, the borrowing, and what's the let's say, what's the customer, the buying environment out there?
Speaker #2: No, not at all. Also the same. They are happy with the launch in Canada. We are also excited about the launch in Brazil in the following month.
Speaker #2: So nothing changes. We keep believing in this path that we created some months ago, and we believe that's how we're going to generate value for our shareholders.
Speaker #3: No, not at all. Keeps also the same. We are happy with the launch of Canada. We are also excited with the launch in Brazil in the following month.
Speaker #3: Mm-hmm. And I’ll just scroll down here. A couple of other questions. Yeah. Will there be expansion outside the areas that you have already spoken about? That would be—well, you have North America and Latin America.
Speaker #3: So nothing changes. We keep believing here in this path that we created some months ago. And we believe that's how we're going to generate value to our shareholders.
Speaker #1: And I'm going to just scroll down here. A couple of other questions here. Yeah. Will there be expansion outside the areas that you have already spoken about that would be well, you have North America and Latin America.
Speaker #3: I know that in the previous broadcast there was a lot of talk about West Indies and stuff like that. How do you see further expansions, or are you digging where you are?
Speaker #2: Oh, sure. For sure. It's a long time to do. We want to expand. But let's give us a bubble, give us some time, so we can elaborate where we are going to reach next after Latin America and the Americas.
Speaker #1: I know that in the previous broadcast there was a lot of talk about West Indies and stuff like that. How do you see further expansions or are you digging where you are?
Speaker #2: In the next update, we'll provide more intel on that.
Speaker #4: If I could just answer that quickly—right out of the focus is to scale what we have, out of the footprint that we have. There's tremendous potential.
Speaker #3: Oh, sure. For sure, it's a long-term view we want to expand. But let's give us Pablo, give us some time so he can elaborate where we're going to reach next after Latin America and Americas.
Speaker #4: There's tremendous volume, so we're trying to execute our strategy, get that growing, and then consider other strategic expansions.
Speaker #3: Mm-hmm. And I think the last, this question came on the back of you, Pablo Ribas, being a new CEO and with your background here.
Speaker #3: In the next one. We'll provide more intel on that.
Speaker #2: If I could answer that quickly, right now the focus is to scale what we have on a footprint that we have. There's tremendous potential.
Speaker #3: So with that, very interesting. You have had a very busy quarter, and I would assume you have a very busy quarter ahead of you. So, I will thank you for that, gentlemen.
Speaker #2: There's tremendous volume. So we're trying to execute on the strategy, get that grown, and then consider other strategic expansions.
Speaker #1: And I think this question came on back of you, Pablo Ribas, being a new CEO and with your background here. So with that very interesting, you had had a very busy quarter, and I would assume you have a very busy quarter ahead of you.
Speaker #3: And we will thank everyone who asked the questions. I'm sure there will be more questions. Well, I got one in here: Could you further explain the relatively large non-cash expenses, because you mentioned that in the beginning?
Speaker #1: So I will thank you for that, gentlemen. And we will thank everyone who asked the questions. I'm sure there will be more questions. Well, I got one in here.
Speaker #3: So, if we just round off with that question.
Speaker #2: Sorry. Okay. So the first part is the two major impacts, right? The first one was a stock option-based insurance by the transaction-related field. Secondly, it was a capital raise for co-investors, also on the same transaction.
Speaker #1: It's could you further explain the relative large non-cash expenses? Because you mentioned that in the beginning, so if we just round off with that question.
Speaker #3: Sorry. Okay. So first part of it, the two major impacts, right? The first one was the stock option-based insurance by the transaction-related skill. And secondly, it was a capital raise for co-investors also on the same transaction.
Speaker #2: These are non-cash impacts on the accounting, and they were basically reflected by this.
Speaker #3: Mm-hmm. Right. So with that, we will say thank you to you again, and a special thank you to all the ones who had forwarded questions.
Speaker #3: And if you have any unanswered questions, we will refer them to the company. So with that, gentlemen, thank you so much. Och till alla som tittar, tack ska ni ha.
Speaker #3: These are non-cash impacts on the accounting and they were basically reflected by this.
Speaker #3: Hej.
Speaker #1: Right. So with that, we will say thank you to you again. And a special thank you to all the ones who had forwarded questions.
Speaker #1: And if you have any unanswered questions, we will refer that to the company. So with that, gentlemen, thank you so much. Or till alla som tittar, tack ska ni ha.
Speaker #1: Hej!
Speaker #2: Thank you very much.
