Gasum Group Financial Result Q2 2019 – Expansion of gas infrastructure

Expansion of gas infrastructure – Increasingly wide-spread use of gas-fueled vehicles promotes significant traffic emission reductions

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

 1,000 € 1–6/2019 1–6/2018 Change 2018
 Revenue 632.5 597.5 5.9% 1,177.4
 Operating profit 76.3 76.3 0.0% 124.2
 Operating profit (%) 12.1% 12.8%   10.5%
 Equity ratio % 43.9% 44.0%   43.7%
 Return on equity (%)* 12.0% 13.3%   13.3%
 Return on investment (%)* 8.6% 9.3%   9.2%
 Balance sheet total 1,574.4 1,465.9 7.4% 1,526.6
 Net interest-bearing debt 573.9 558.9 2.7% 562.7
 Gearing ratio % 83.3% 86.7%   84.7%
 Net debt/EBITDA* ** 2.8 2.9   2.9
 Personnel at year-end 364 432 -15.7% 434

  * 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 >


For further information please contact:
Johanna Lamminen, Chief Executive Officer, Gasum 
Phone. +358 20 44 78 661, (Henna Walker, Executive Assistant)

The energy company Gasum is a Nordic gas sector and energymarket expert. Together with its partners, Gasum is building a bridge towards a carbon-neutral society on land and at sea.