Development of Nordic gas market continues
Gasum Group reported its key financial indicators January 1 to December 31, 2020:
- Group income totaled €772.0 million (December 31, 2019: €988.7 million)
- Group adjusted operating profit was €33.8 million (2019: €28.9 million)
- Balance sheet total came to €1,362.0 million (December 31, 2019: €1,163.2 million)
- The Group’s solvency remained strong in the reporting period, with the equity ratio being 36.0% (December 31, 2019: 44.6%)
Gasum Group CEO Johanna Lamminen comment on 2020:
“Despite the exceptional circumstances, we succeeded in advancing our strategy as planned, which required hard work in an increasingly competitive market. The importance of gas as an energy source over the longer term will increase further in industry and maritime transport in particular, as the Nordic countries are taking steps towards carbon-neutral societies. Regardless of the uncertainties caused by the COVID-19 pandemic, we were able to ensure business continuity and progress in our projects. The impacts of the pandemic were reflected in our business operations in particular as start-ups of our new plants being pushed back and our new customer projects being delayed as well as in the growth targets set by us. I would like to thank our employees, customers and partners for well-functioning and flexible cooperation in an operating environment that has been challenging for all of us.
In total, the Group’s gross income in the financial year were €772.0 million, of which other operating income €107.7 million, including among others realized and unrealized commodity derivatives results. The Gasum Group’s revenue for the period under review totaled €664.3 million, down 28.2% on the corresponding period a year earlier. The decline in revenue was caused primarily by the European trend in the sales price of gas.
In maritime transport, demand for cleaner fuel solutions and interest in gas-powered heavyduty vehicles continued to grow in 2020. As part of our strategy execution, we closed the acquisition of Linde AG’s LNG and Biogas business and Nauticor’s Marine Bunkering business. The transaction expanded our supply of gas solutions in the Nordics particularly in maritime transport and heavy-duty road transport while also expanding our gas filling station network.
The year also saw us continue the expansion of the Nordic gas filling station network serving heavy-duty vehicles (HDVs) and opened eight new filling stations in the Nordic countries. The number of gas-powered HDVs increased by more than 400 new vehicles in the Nordics during the year. Companies upgrading their fleets included Posti Freight Services in Finland with its ten new biogas-fueled trucks and Bring Åkeri in Sweden with its six new biogas trucks.
Gas is also attracting interest among forerunners in maritime transport, and we are continuously developing our fuel offering and services to meet the maritime sector’s needs. To provide our shipping customers with a flexible service across an even more extensive geographical area, we entered into partnership with Pavilion Energy. The partnership enables us to provide customers with liquefied natural gas (LNG) in the Singapore region and in Northern Europe. We also started regular deliveries of a fuel blend containing renewable liquefied biogas (LBG) to our maritime transport customer Preem in Sweden.
In line with our strategy, we also improved access to renewable energy and acquired a biogas plant in Skövde and made an investment decision concerning the construction of an industrial-scale biogas plant in Götene, Sweden. In Finland, the commercial use of the expanded Turku biogas plant - also Finland's first plant producing LBG - began, and at the end and at the end of the year we took into use a transfer station for biowaste in Vantaa. We also entered into our first long-term Power Purchase Agreement (PPA) with ABO Wind Oy on the output of a wind farm located in North Ostrobothnia, Finland.
There is growing industry interest in the use of gas in the Nordic countries. We delivered LBG to the cleantech company Forchem and entered into an LNG supply contract with the Norwegian reinforced steel company Celsa Armeringstål.
We also entered into a portfolio management cooperation agreement with the Finnish energy company Keravan Energia and expanded our role in the Nordic power market by becoming a member of the Nordic power exchange of Nasdaq OMX.”