Gasum Group Q3 2024: Positive volume development continued in the maritime and traffic segments

January–September 2024 (January-September 2023):

• Sales volumes increased by 42 percent compared to January-September 2023 mainly due to higher natural gas volumes and were 13.0 (9.2) TWh.
• The Group's revenue decreased by 3.0 percent to EUR 994.6 (1,025.7) million due to decline in gas market prices.
• Operating profit (EBIT) was EUR 1.1 (-5.4) million. Adjusted operating profit (EBIT) was EUR 26.6 (-24.8) million
• Balance sheet total came to EUR 1,478.9 (1,506.2) million
• Equity ratio was 37.3 (34.8) percent

Gasum Group CEO Mika Wiljanen comments on the third quarter of 2024:

“In the maritime and traffic segments volumes continued to grow steadily when compared to the third quarter of 2023 although the growth in the maritime segment has slowed down somewhat from the first half of 2024. In the industry segment volumes were more or less on the same level as the previous year.

The adjusted operating result for the third quarter of 2024 was EUR -9.0 million (Q3 2023: EUR -4.5 million) and the adjusted operating profit margin for Q3 2024 was -3.2% (Q3 2023: -1.6%).  The adjusted operating result for the cumulative period of Q1-Q3 2024 was EUR 26.6 million (Q1-Q3 2023: EUR -24.8 million) and the adjusted operating profit margin 2.7% (Q1-Q3 2023: -2.4%). Equity ratio at end of September 2024 was 37.3% (September 30, 2023: 34.8%). Q3 2024 Operating profit was negatively impacted by change in Venator receivable related ECL (expected credit loss) provision, impact on operating profit EUR -16.1 million (see further information under section Financial performance and Legal proceedings and claims.).

In July Gasum ceased all imports of LNG from Russia in accordance with the EU sanctions approved in June. This has resulted in the need to reorganize LNG supply, which has burdened profitability. Nevertheless, we have been able to supply our customers with LNG without any delays or interruptions.

Implementation of the Gasum strategy continued throughout the third quarter of the year. While biogas sourcing and production has progressed as expected, sales are somewhat delayed due to development of the renewable market. All in all, delivery volumes exceeded 2023 figures of the same period but are lower than planned.

In the power business the expansion to the Swedish market is also proceeding. On the energy market the focus remains mainly on security of supply and price as the economy in Europe is still recovering. In the current economic climate companies are not keen on taking voluntary actions to reduce emissions but would rather wait for regulatory measures to come into effect.

Despite the delay in driving our strategy forwards in the market, Gasum has been active in building the infrastructure that will eventually enable the planned growth in the biogas market.

At our plant project site in Götene, main building works have been finished and the start-up of the digestion process was carried out during the third quarter. The plant uses mainly manure as feedstock and first test batches were already delivered to the plant in September. Commercial production is set to start during the first quarter of 2025. Ground works at the second plant in Borlänge proceeded as planned as did work at existing plants designed to increase efficiency and biogas production.

In the maritime segment we can see signs of an increase in the demand for biogas as the enforcement of the FuelEU Maritime regulation approaches from the start of 2025. During the third quarter of 2024 we signed an agreement to bunker Hapag-Lloyd’s container vessels with a total amount of 20,000 mt of liquefied biogas during 2025–2026 in accordance with Hapag-Lloyd’s winning ZEMBA tender. ZEMBA is a buyers’ group with the mission to accelerate commercial deployment of zero-emission shipping solutions.

During the period Gasum also made a supply agreement with Equinor to provide the platform supply vessel Island Crusader with liquefied biogas on an ongoing basis. This supply agreement is part of Equinor’s goal to become a net-zero emissions energy company by 2050.

We also ended natural gas sales at Finnish gas filling stations from the start of September. This means that Gasum’s filling stations in Finland will only sell biogas from now on. Almost all of Gasum’s filling station customers in Finland have already been choosing biogas for a couple of years now, as the price has been competitive compared to natural gas. Today, the availability of biogas is secure, so that it is no longer necessary to keep natural gas as a back-up alternative at stations.”

Read the whole review on the Gasum website

For more information please contact:

Mika Wiljanen, CEO, Gasum
Executive Assistant, Stella Hanafi
+358 40 153 5854, stella.hanafi@gasum.com

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