Gasum Group H1 2024: Profitability improved with increasing volumes and better operational performance

January–June 2024 (H1 2023):

• The Group’s revenue decreased by 4.3 percent to EUR 712.9 (745.1) million due to decline in gas market prices.
• Operating profit (EBIT) was EUR 15.3 (-26.4) million. Adjusted operating profit (EBIT) was EUR 35.7 (-20.3) million
• Balance sheet total came to EUR 1,556.0 (1,485.9) million
• Equity ratio was 37.3 (34.0) percent
• Sales volumes increased by 48 percent compared to H1 2023 mainly due to higher natural gas volumes and were 9.2 (6.3) TWh.

Gasum Group CEO Mika Wiljanen comments on the first half of 2024:

“In the first half of 2024 we finally saw a more normal energy market after the slow and gradual recovery during 2023 from the turmoil of the previous year. There was a marked improvement in volumes compared to the first half of 2023. We also improved the utilization rate of our value chain, with, for example, an increased number of ship bunkerings during the period.

Last year, in 2023, Gasum’s result was burdened by costs that resulted from the adverse impacts of market turmoil and adjusting operations to the changed energy landscape in 2022. During the first half of 2024 those adverse impacts were significantly reduced, and profitability improved as a result.

The adjusted operating result for the second quarter of 2024 was EUR 17.9 million (Q2 2023: EUR -9.3 million) and the adjusted operating profit margin for Q2 2024 was 6.2% (Q2 2023: -3.1%).  The adjusted operating result for the cumulative period of H1 2024 was EUR 35.7 million (H1 2023: EUR -20.3 million) and the adjusted operating profit margin 5.0% (H1 2023: -2.7%).  Equity ratio at end of June 2024 was 37.3% (June 30, 2023: 34.0%). 

Compared to the first half of 2023, sales volumes improved in maritime and traffic segments. The order book for new gas trucks has been filling more rapidly in the Finnish and Norwegian markets. In the industry segment, LNG sales volume development has been stable as expected.

Biogas sales are currently lagging projected figures for 2024. One of the reasons behind the slow demand is the general economic downturn, which has increased worries related to security of supply and decreased incentives for voluntary emission cuts. Regulation obliging the transport sector to make emission cuts is shortly upcoming but not in force yet. Other obstacles such as unfavorable taxation in Sweden are hampering sales as well.

During the first half of 2024 Gasum had a tight focus on executing the company strategy and driving business activities forward in a normalized market, after the turmoil and then slow stabilization during 2022–2023. The Baltic Connector pipeline was repaired on schedule and came back online in April, which means that we once again have two import channels for pipeline-delivered natural gas into the Finnish market.

Project work on Gasum’s next new biogas plant in Götene, Sweden, is nearing completion on schedule and startup of the reactors is planned for early fall. At Borlänge, Gasum’s second new large scale biogas plant, contracts for groundwork were signed during the second quarter of the year and work onsite is set to begin during the summer. Throughout the first half of the year, we also both opened new filling stations and announced new station projects in Finland, Sweden and Norway.

In the power business we made headway in the expansion into the Swedish market. We also developed our product offering in energy market services through a strategic partnership and continued our good customer relationship with Umicore by signing another power purchase agreement (PPA) with the company.

In June, we signed a long-term financing agreement of EUR 565 million. Gasum’s green loan, which is used to finance strategic investments into increasing biogas production, was extended from EUR 152 million to 175 million. The margin of one of the facilities is tied to Gasum’s own sustainability goals related to renewable gas volumes, sustainable biogas production and safety. This long-term financing is vital for Gasum to be able to execute its strategy of investing in continuously increased biogas production.

On 24 June the EU issued a new sanctions package against Russia, which included a prohibition to purchase or import liquified natural gas originating from Russia through EU terminals that are not connected to the EU gas network. The sanctions adopted by the EU do not allow Gasum to terminate its agreement with Gazprom export but constitute a force majeure on the purchase or import of Russian LNG to off-grid terminals. The prohibition included in the sanctions package have come into force 26 July 2024 as of which date Gasum no longer purchases or imports Russian LNG.

I would like to extend my thanks to the Gasum staff for their continued and consistent support during the first half of 2024 in executing our strategy and for living our values of respect, sustainability and positive energy every day.”

Read the whole review on the Gasum website

For more information please contact:

Kai Laitinen, CFO, Gasum
+358 40 500 2080, kai.laitinen@gasum.com

Olga Väisänen, Vice President, Communications and Sustainability, Gasum
+358 40 554 0578, olga.vaisanen@gasum.com