Key figures and financial reports

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 >

Under the agreement signed between Gasum and Kouvolan Vesi, the Mäkikylä biogas plant and its business, including contracts, will transfer to Gasum on June 17, 2019. The plant comprises the biogas plant building and process equipment located in conjunction with Mäkikylä wastewater treatment plant.

“The transaction now completed ends a process lasting several years during which we have sought an economically and functionally sustainable solution to our biogas plant operations, which are not part of our core business,” sums up CEO Timo Kyntäjä at Kouvalan Vesi.”

The Mäkikylä biogas plant has been underperforming largely because of its small processing capacity. The plant has processed around 20,000 tonnes of biomass a year, which is the amount allowed by its permit. Gasum plans to invest in developing the plant.

“As a company we are committed to growing the supply of biogas as a renewable traffic fuel and as an enabler to achieving traffic emissions reduction targets. This requires increased production of biogas. The transaction will allow us to invest in the expansion of the Mäkikylä plant with the aim of increasing biogas production at the plant. We will also modernize the processes at the plant to bring them into line with today’s requirements,” says Ari Suomilammi, Director, Circular Economy Finland, Gasum.

Gasum currently owns 12 biogas plants in Finland and Sweden, and buys biogas from three partner plants, of which the Mäkikylä plant is one. Gasum has invested in the construction of a biogas plant in Lohja (Finland) and in Nymölla (Sweden) and in the expansion of the Turku biogas plant. The company’s current biogas capacity is around 650 GWh a year.

Completed in 2011, the Mäkikylä bioplant was built by Kymen Bioenergia Oy, whose main owner was KSS Energia Oy. The City of Kouvola transferred the bioplant and its processing plant to the Waterworks in 2014–2015.