Gasum Group Q3 2023 – Stable market prices resulted in positive LNG volume development in the maritime market as demand grows
Gasum concentrated on implementing its strategy in a calmer market environment with stable gas prices during the third quarter. The breakdown of the Balticconnector pipeline, which occurred after the quarter, poses uncertainties for the coming winter season.
January–September 2023 (Q1–Q3 2022):
- LNG volumes developed positively while pipeline natural gas volumes decreased as expected. This led to overall sales volumes of 8.8 (11.9) TWh, which is 26 percent lower than in 2022.
- The Group’s revenue decreased by 47.7 percent to EUR 1,025.7 (EUR 1,959.4) million due to a decline in gas market prices.
- Operating profit (EBIT) was EUR –5.4 (EUR 119.3) million. Adjusted operating profit (EBIT) was EUR -23.5 (EUR 42.1) million.
- Balance sheet total was EUR 1,506.2 (EUR 2,553.2) million.
- Equity ratio in end of Q3 2023 was 34.8 (20.3) percent.
Gasum Group CEO Mika Wiljanen comments on Q3 and the year-to-date 2023:
“During the third quarter of the year we continued to operate in a more stable market environment. While pipeline natural gas volumes were modest, we saw positive development in liquefied natural gas (LNG) volumes in the maritime market as the price of LNG was favorable throughout the quarter.
The Group’s revenue for Q1–Q3 2023 was EUR 1,025.7 million, operating profit was EUR -5.4 million and adjusted operating profit was EUR -23.5 million. While the market remained stable and volumes developed positively in the maritime LNG market, Gasum’s result remained to be burdened by costs that resulted from adverse impacts of the market turmoil and adjusting operations to the changed energy landscape in 2022. These costs, while decreasing, are expected to burden Gasum's result until the end of Q1 2024.
After the end of the third quarter a leak appeared in the Balticconnector gas pipeline between Finland and Estonia leading to a shutdown of gas flow. This leak was later determined to have been caused by external activities and further investigations were started. While the shutdown does not pose an immediate threat to Gasum's ability to serve our natural gas customers, it does generate uncertainties regarding the coming winter season. Gasum is in the process of rebuilding the supply and logistics chain to meet the natural gas demand of our customers.
Throughout the third quarter we consistently continued to implement the Gasum strategy and planning of new investments proceeded according to schedule. We initiated the execution of three expansions of existing biogas plants in Finland and Sweden. Work at the Vehmaa plant in Finland proceeded well and commissioning is expected in December this year. On-site work at the Oulu plant in Finland is expected to start early 2024 and at the Örebro plant in Sweden later in the spring.
The execution of the greenfield project in Götene continues as planned. The three main reactors as well as several other storage tanks for biomass and biofertilizer and the frames of technical buildings have been erected and the infrastructure at the plant area is finished.
At the beginning of July Gasum also expanded its biogas portfolio by acquiring majority ownership in Swedish biogas upgrading company Liquidgas Biofuel Genesis AB. Liquidgas Biofuel Genesis owns and operates a biogas upgrading plant in the city of Helsingborg in southern Sweden. The current output of the plant is 80 gigawatt hours (GWh) worth of upgraded biogas per year.
In the power business we reached a milestone with our first fuel switch agreement. This means optimizing energy purchasing for our customer by switching between gas and electricity use based on the daily or even the hourly energy price on the market.
Gasum received the top rating of dark green from independent ratings issuer Shades of Green for its framework for sustainable investments, or green loans, to be used in the biogas business. Our strengths in the assessment were using waste as a resource and promoting circularity. Gasum also received a governance score of Excellent as sustainability is solidly rooted in Gasum’s corporate governance.
During the third quarter of the year, we opened two new filling stations, one in Sweden and one in Finland and the LNG bunker supply vessel Kairos returned to Gasum’s fleet after being subleased out for a period of time. These developments will enable us to serve our customers more effectively as demand for LNG and biogas increases.”
For more information please contact:
Mika Wiljanen, Chief Executive Officer, Gasum
Heidi Westerberg, Executive Assistant
Phone: +358 40 580 0951, email@example.com
Olga Väisänen, Vice President, Communications and Sustainability, Gasum
Phone: +358 40 554 0578, firstname.lastname@example.org