Key figures and financial reports

Gasum has concluded a green loan agreement with SEB, Nordea and OP Corporate Bank. SEB acted as the sole co-ordinator and the Agent for the credit facilities. The green loan accounts for around 39 percent of the company’s total borrowing. In the same context, the company renewed its other loans and took out a loan for the unbundling of the gas transmission network business.

”Gasum’s strategy is to build the Nordic gas ecosystem by expanding the gas markets. In our responsibility program we have committed to act to curbing climate change and to promote the transition to a low-carbon society. Through our Green Funding Framework we can show the positive environmental and climate impacts of our business. We provide cleaner energy to our customers for combined heat and power production, for industrial needs as well as for road and maritime traffic. We help our customers to reduce their own carbon footprint and that of their customers,” says Elina Saarivuori, Sustainability Manager, Gasum.

Gasum’s Green Funding Framework has been evaluated by CICERO Shades of Green (Center for International Climate Research). CICERO Shades of Green has given Gasum’s Green Funding Framework the grade of dark green, which is allocated to the most climate friendly projects or business solutions that promote the long-term vision of the transition to a low-carbon society. The shades in the evaluation ratings are dark green, medium green and light green.

”Gasum offers its customers cleaner energy. We also want to show the direct and indirect impacts of our operations through what we do. A responsible financing strategy is an important part of our economic responsibility,” says Jonas Bergroth, Treasury Manager, Gasum.

The company reports annually the operations covered by green funding and their environmental and climate impacts in its Impact report. Nordea helped Gasum to develop its Green Funding Framework.

“We worked together with Gasum to develop the Green Funding Framework. We believe that understanding the impacts, both economically and environmentally, of sustainable businesses and operations is a growing trend. Green funding is well aligned with Gasum’s responsible bioeconomy and circular economy business. Corporates and investors are increasingly interested in responsible and sustainable investments, and as financiers we want to support our clients’ in their efforts to move towards more sustainable business”, says Juho Maalahti, Sustainable Debt and Funding Advice, Nordea.

Gasum’s Green Funding Framework covers Gasum’s renewable energy production, circular economy products, waste management operations and energy efficiency measures. The Green Funding Framework also includes financing and corporate responsibility management, which CICERO evaluated as being of an excellent standard. CICERO’s methodology aims to provide transparency for investors and a chance to see the climate risks and impacts in business activities.

Read more:

• CICERO Shades of green Second opinion
• Gasum Corporate Responsibility report 2018
• Gasum Responsibility Program

Kai Laitinen will join the Gasum Management Team from Stockmann plc where he has served as CFO since 2017.

"I’m delighted to welcome Kai Laitinen to Gasum. Strong management and leadership of our finance in a constantly changing operating environment plays a key role for our company’s success as we’re taking our strategy forward. Kai’s impressive financial administration and financing competencies combined with his track record with international listed companies will be an excellent complement to Gasum's professional and competent financial team and the Gasum Management Team, says Gasum CEO Johanna Lamminen.

Before joining Stockmann, Laitinen served as CFO and management team member at Finavia and in variety of financial management roles at Outokumpu.

Gasum’s previous CFO Lasse Aarnio will have a new role as a Senior Advisor in new Portfolio Management and Trading business unit. “I want to thank Lasse, whose role in developing Gasum's financial management and taking it to a new level has been highly significant,” says Lamminen.

Key financial indicators January 1 to June 30, 2019:

•  Group revenue increased by 6% and totaled €632.5 million (H1/2018: €597.5 million)
•  Operating profit totaled €76.3 million, flat year on year (€76.3 million)
•  Balance sheet total increased to €1,574.4 million (December 31, 2018: €1,526.6 million) following the introduction of the new IFRS 16 standard
•  The Group’s financial position remained strong in the reporting period, with the equity ratio being 43.9% (December 31, 2018: 43.7%)

Key financial indicators

  _{* Annualized
  ** Current period restated without the IFRS 16 effects
  Reference period information does not include IFRS 16 effects}

Gasum Group CEO Johanna Lamminen comments on the first half of 2019:

”Our financial performance was in line with our expectations during H1. Our revenue increased to €632.5 million, up 6% year on year (€597.5 million) and our operating profit for the period under review was €76.3 million (€76.3 million), which was flat compared to a year earlier. 

During H1, we took our strategy steadfastly forward and together with our personnel updated our strategic targets for future years. Demand for cleaner energy solutions is showing strong growth in industry and total gas sales volumes are projected to further increase. As a low emission fuel, the role of gas will increase in the future, above all in maritime transport and heavy-duty road transport as action to curb climate change calls for a transition to cleaner solutions.

Gasum’s associated company Manga LNG Oy’s LNG terminal in Tornio, Finland was opened in early June. The new terminal is a response to growing demand for low-emission LNG and strengthens security of LNG supply in the northern parts of the Nordic countries. The terminal will significantly support the competitiveness of the region by ensuring the availability of an affordable, low-emission form of energy to meet the demands of local industry as well as maritime and heavy-duty road transport.

During the period under review, we entered into significant partnerships in different businesses, of which the most important are two liquefied natural gas supply contracts to industry: Forchem Oy’s tall oil distillery in Rauma and Eastman Chemical Company Oy’s production site in Oulu. Gas offers industrial operators a good alternative to achieve emissions targets.

Growing the road fuel gas market and increasing biogas production are key elements in Gasum’s strategy. We have acquired the Mäkikylä biogas plant in Kouvola, Finland from Kouvola Vesi Oy. The transaction enables us to invest in the expansion of the Mäkikylä plant with the aim of increasing biogas production and modernizing the processes at the plant to bring them into line with today’s requirements. During the period under review, we also made
an investment decision to construct a biogas plant at Munkkaa in conjunction with the Lohja waste management center. On completion, the plant is expected to produce more than 40 GWh of biogas and 50,000 tonnes of organic fertilizers a year.

During the period under review, we opened three gas filling stations to meet the needs of heavy-duty transport and three filling stations for passenger cars. In addition, other operators are also building new gas filling stations, which will further complement the filling station network. Adding to the network of gas filling stations promotes the circular economy and supports national emissions reduction targets by helping Nordic transport to switch over to using cleaner fuel solutions.”

Link to the Gasum Group financial result Q2 2019 >