Key figures and financial reports

January–September 2022 (1-9/2021):

• The Group’s revenue increased by 152 percent to EUR 2,044.7 (811.6) million
• Operating profit (EBIT) was EUR 119.3 (-226.4) million. Comparable operating profit (EBIT) was EUR 42.1 (-26.3) million
• Balance sheet total came to EUR 2,553.2 (1,972.4) million
• Equity ratio was 20.3 (15.3) percent
• Sales volumes decreased by 30.3 percent and were 9.2 (13.2) TWh

Gasum Group CEO Mika Wiljanen comments on Q3 and the year-to-date 2022:

“During the third quarter of 2022, Russia extended its brutal war against Ukraine and continued to use energy supplies as a weapon against Europe. Significant turbulence in the energy markets continued and we witnessed record-high levels in European gas and power prices. The operational environment remained extremely challenging for Gasum and our customers and led to a decrease in our sales volumes, especially in industrial and maritime segments.

In order to improve our resilience, we have continued to thoroughly review our operational activities and implemented various measures to improve the company’s profitability. The revision of our strategy was finalized in the third quarter and will be published during the last quarter. The revised strategy, implemented together with our dedicated and competent people, will ensure profitable growth in all our business segments.

The Group’s revenue for Q1-Q3 of 2022 was EUR 2,044.7 million, operating profit was EUR 119.3 million and adjusted operating profit was EUR 42.1 million. Despite the challenging operational environment, the Group’s profitability has improved following actions made both in performance improvement and improved margins due to market and price development.

In the maritime business, we successfully bunkered the first LNG fueled cruise vessel built by Chantiers de l’Atlantique. In addition to delivering LNG, we have supported Chantiers de l’Atlantique in the technical preparation of the delivery, including obtaining the relevant permits and authorizations. This delivery marked a new milestone in the extension of Gasum’s LNG bunkering network and underlines our ambition to grow geographically, offering our expertise to customers wherever it is needed.

In September, we joined forces with Biolan and Pöytyän Maanparannus in nutrient recycling. A new joint venture, Kiertoravinne Oy, supplies digestate-based fertilizer products and recycled nutrients from biogas plants for the needs of industry and agriculture. Demand for recycled nutrients has shown strong growth over the past few years. This is attributable to their good availability, and their price level compared to other widely used mineral fertilizers. During its first year of operation, Kiertoravinne Oy will deliver around 250,000 tonnes of digestate and recycled nutrients from Gasum’s biogas plants. This accounts for around half of Gasum’s total production in Finland. In addition, plans are in place to transfer all nutrient production from Gasum’s Finnish biogas plants for the use of Kiertoravinne after a transition period.

In the third quarter, we also signed a power purchase agreement (PPA) with Umicore to supply them with renewable electricity. The electricity will be delivered to Umicore’s site in Kokkola, Finland. The 10-year contract for wind-generated energy starts in 2025 and covers 45 GWh annually. The PPA supports both Gasum’s and Umicore’s purpose of building a better and cleaner tomorrow in their respective fields. The agreement also extends their prior cooperation as Umicore has been purchasing portfolio management services from Gasum’s Energy Market Services.

Regardless of the challenging operating environment, we remain committed to serving our customers to the best of our ability. I am fully convinced that our revised strategy will enable us to provide our customers and stakeholders with first-in-class services and solutions."

Read the whole Q3 2022 review on our website >

Gasum has a long-term natural gas supply contract with Russian Gazprom Export. Last April, Gazprom Export presented Gasum with a demand that the payments agreed in the supply contract should be paid in rubles instead of euros. Gasum did not accept this demand. In addition, the companies had a significant disagreement regarding certain other demands made based on the agreement. Due to these reasons, Gasum referred the matter to arbitration in accordance with the supply contract. Gazprom Export ceased gas supplies to Gasum in May.

On November 14, the arbitral tribunal issued an award in the matter. According to the award, Gasum is not obligated to pay in rubles nor though the proposed payment procedure. Furthermore, the arbitral tribunal ordered Gasum and Gazprom Export to continue their bilateral contract negotiations to resolve the current situation. Natural gas deliveries from Russia in accordance with Gasum’s supply contract will not continue for the time being.

Gasum will not comment on the case further during the negotiations.

On November 7, 2022, the Market Court of Finland has ruled on a matter between Gasum and the Finnish Energy Authority concerning unbundling obligations under the Natural Gas Market Act.

In July 2020, the Energy Authority submitted to the Market Court that a considerable penalty fee be imposed on Gasum Ltd for non-compliance with the unbundling obligations in conjunction with the company’s demerger. Gasum contested the Energy Authority’s claims in all respects and the matter was brought before the Market Court for a ruling.

By a ruling given today, the Market Court reversed, following Gasum’s appeal, the decisions issued by the Energy Authority concerning Gasum’s financial statements. In addition, the Market Court dismissed the Energy Authority’s proposal concerning a penalty fee.