Gasum Group posts H1 2023 results
While sales development was positive, Gasum’s result was burdened by costs, which resulted from restructuring and risk mitigation of the natural gas business in response to the surrounding geopolitical situation and changes in energy markets, according to the company's release.
January–June 2023 (H1 2022):
The Group’s revenue decreased by 41.5 percent to EUR 745.1 (1,274.2) million due to lower gas prices and volumes.
Operating profit (EBIT) was EUR –26.4 (+56.3) million at loss. Adjusted operating profit (EBIT) was EUR -20.2 (5.6) million
Balance sheet total came to EUR 1,485.9 (2,244.0) million
Equity ratio was 34.0 (20.9) percent
Sales volumes decreased by 37 percent compared to H1 2022 mainly due to lower natural gas volumes and were 6.2 (9.2) TWh.
The Group’s revenue for the first half of 2023 was EUR 745.1 million, operating profit was EUR –26.4 million and adjusted operating profit was EUR –20.2 million. While volumes and sales developed positively during the first half of the year, Gasum’s result was burdened by costs that resulted from adverse impacts of the market turmoil and adjusting operations to the changed energy landscape in 2022.
The costs are an outcome of the need to reorganize the entire supply chain for pipeline-delivered natural gas as natural gas flow from Russia ended in May 2022.
In May 2023 Gasum ended the long-term pipeline natural gas supply contract it had with Russian Gazprom Export. Gas supplies had at that point been discontinued for a year. Gasum began arbitration proceedings after Gazprom demanded for payment in rubles instead of euros in the spring of 2022. The parties were not able to come to a settlement after the arbitration proceedings which resulted in Gasum ending the agreement.
The implementation of Gasum’s new strategy, launched in Q4 of 2022, proceeded with determination throughout the first half of 2023.
Construction work on our next large 120 GWh biogas plant in Götene, Sweden proceeded as planned and investment decisions on expansions and improvements of three existing plants in Finland and Sweden were made in the second quarter. Completion of the improvement and expansion projects at the existing plants by the summer of 2024 will increase Gasum’s biogas output by 60 GWh annually.
In June Gasum and the Cruise Division of global shipping company MSC Group signed a long-term agreement for the supply of LNG to MSC’s new flagship MSC Euribia, as well as a Letter of Intent with the goal of cooperating on the supply of synthetic liquefied methane, or e-LNG, made with renewable energy. MSC Cruises also purchased over 400 tons of liquefied biogas (LBG) from Gasum for the world’s first net zero greenhouse gas emissions cruise from Saint-Nazaire in France to Copenhagen.
Gasum is also providing LBG to cruise ferry operator Viking Line in an innovative initiative to allow passengers to reduce the carbon footprint from travel by up to 90 percent by buying biogas in proportion to the amount of fuel used for their journey. This is an initiative that Gasum is very happy to be a part of.
