LNG

Gasum, the Finnish state-run natural gas company and leading Nordic LNG supplier, has named Mika Wiljanen as the new Chief Executive in succession to Johanna Lamminen, who stepped down after seven years in the post.

Gasum, the Finnish state-owned LNG distribution company and regasification and liquefaction infrastructure owner in the Nordic region, is looking for a new Chief Executive after incumbent Johanna Lamminen resigned with immediate effect after leading the company for over seven years

Gasum, the Finnish state-owned LNG distribution company and regasification and liquefaction infrastructure owner in the Nordic region, posted an annual net loss and lower revenues while expanding its operations.

Gasum of Finland, the Nordic LNG fuel terminal network operator supplying the shipping, trucking and power sectors reported large declines in nine-month after-tax profits and revenues as it felt the full impacts of Covid-19 and the resultant economic slowdown.

Gasum’s nine-month profits after taxes plunged to €1.6 million ($1.8M) from €8.3M in the same period of 2019.

The company also posted a drop in nine-month revenue to €448.9M from €698.2M in the same period of 2019.

Operating profits almost halved to €12.8M from €22.4M in the same period of last year.

”Our financial performance during the reporting period was almost in line with our expectations despite the uncertainties caused by the COVID-19 pandemic, and there was steady demand for gas solutions,” said Chief Executive Johanna Lamminen.

“The impacts of the pandemic were seen in our business, primarily with regard to the growth targets we set. Lockdowns caused us to push back with bringing our new plants into use and at the same time our customers have also delayed their projects, which in turn has impacted the start-up of Gasum’s deliveries,” she explained.

Gasum is owned by the government of Finland and has five LNG bunkering vessels in operation and several LNG terminals and plants in Nordic region.

“Revenue and operating profit were primarily affected by the price trend of gas in Europe,” said CEO Lamminen.

Gasum owns a network of LNG import terminals, a liquefaction plant and an expanding chain of LNG fuel stations for vehicles in the Nordic region.

Its terminals include Sweden’s Nynashamn small-scale facility with 20,000 cubic metres capacity of storage and purchased in April 2020 by Gasum from Germany’s Linde AG.

The Finnish company also has a small-scale liquefaction plant in Risavika, near Stavanger in Norway, in addition to owning and operating other small regasification and import terminals in Ora and Alesund in Norway and Lysekil in Sweden.

It also partly owns the Pori LNG import terminal in Finland and has a stake in the Finnish Tornio Magna regasification facility.

The Tornio terminal in Northern Finland is the largest in the Nordic region.

It is located on the Swedish border which allows it to serve Gasum’s customers in Finland, Sweden and Norway.

The company continues to build its business and in third-quarter 2020 highlights it cited some new contracts.

“We secured a contract with Norwegian reinforced steel manufacturer Celsa Armeringsstal in Mo i Rana, to supply LNG from the Tornio terminal and to build a new customer terminal in Mo Industrial Park,” explained Lamminen.

“Switching to LNG will contribute to the company’s target of lowering carbon-dioxide emissions originating in its operations,” she added.

Gasum also noted the completion of several LNG bunkering operations in maritime transport to new customers in the Nordic countries and in Germany.

Gasum said it continued to expand the Nordic gas filling station network to serve heavy-duty transport.

“We opened gas filling stations in Gothenburg, Sweden and Lieto, Finland,” said the company.

“Our expanding gas filling station network is creating interest in gas from growing numbers of actors and Vekka Group, for example, introduced six biogas-powered buses into operations in Hämeenlinna in August,” it added.

After the third-quarter reporting period ended, Gasum said it had signed a cooperation agreement with Pavilion Energy of Singapore to develop a global LNG bunkering supply network for customers in Singapore and Northern Europe, including Amsterdam, Rotterdam and Antwerp.

Under a memorandum of understanding, the Asian and Nordic partners said they had agreed to leverage each other’s LNG bunkering infrastructure and supply capabilities to provide global supply points for customers.

As a licensed LNG importer and bunker supplier for Singapore, Pavilion has taken several firm steps to invest in and support Singapore’s LNG bunker readiness. The company is a subsidiary of the city-state’s wealth fund Temasek.

Gasum is owned by the government of Finland and has five LNG bunkering vessels in operation.

Finnish state-run natural gas supplier Gasum said it completed the takeovers of the LNG and biogas business of Germany’s Linde AG as well as German firm Nauticor’s marine bunkering unit.

Gasum, the Nordic LNG distributor owned by the state of Finland, said it continued to develop as a company over the past year marked by parliamentary elections in Finland and the European Union where climate change and the energy sector were at the centre of debate.

“The importance of biogas and the circular economy as part of solutions to the acute challenges relating to climate was emphasized after the elections, and the role played by gas is now increasing in Finland as well as other countries such as Sweden,” said Johanna Lamminen, Chief Executive of Gasum in her annual review.

Gasum said that LNG and biogas were being targeted at those sectors where emission rates were highest, namely road and maritime transport and industry.

“Last year was a year of huge leaps of change for Gasum,” said Lamminen.

“For several years, we have been building Gasum into an energy company making it possible for our customers to access cleaner energy on land and at sea,” she stated.

Fully owned by the state of Finland, Gasum has LNG import assets in Finland and Sweden and LNG liquefaction as well as marine bunkering services through its former Skangas business, now integrated and operating  under the Gasum banner.

The company’s strategy includes an expansion to provide 50 LNG fuel stations by the early 2020s for Nordic transportation companies in Finland, Sweden and Norway.

“Our strategy of focusing on the development of the Nordic gas market and energy infrastructure is being implemented at a great pace,” added the CEO.

She reiterated that the Group’s revenue totaled €1.12 billion ($1.28Bln), down 4.2 percent compared with 2018.

“The decline in revenue was caused primarily by the development in the sales price of gas. Our operating profit was €141.4 million, up 13.9 percent year on year,” she added.

Gasum also concluded the acquisition of the energy industry expert company Enegia to be better positioned among energy market service providers.

“We also announced our acquisition of AGA’s Clean Energy business and Nauticor’s Marine Bunkering business from Linde AG last year,” said Lamminen.

“Once completed, the transaction will create a platform for an even broader offering of low-emission energy solutions in response to growing demand among industrial, maritime and road transport customers,” she added.

In other restructuring, Gasum sold its subsidiary Gasum Tekniikka Oy to the industrial maintenance partner Viafin Service Oyj, which has continued the active development of gas-sector maintenance services.

Gasum continues to build its LNG bunkering business and carried out its 200 ship-to-ship operation in January 2020 as maritime use of the fuel gathers pace in northwest Europe.

The board of directors of Gasum has also been slightly changed with two new members appointed and two others stepping down.

The current members of the Board are Stein Dale, Elina Engman, Päivi Pesola, Elisabet Salander Björklund and Torbjörn Holmström. They were re-elected at the annual meeting.

“Minna Pajumaa and Ari Vanhanen were elected as new members of the Gasum Board and Elina Engman was elected as the Chair,” said Gasum.

Juha Rantanen had previously served as the Chairman of the Gasum Supervisory Board during 2014-2016 and as the Chairman of the Gasum Board of Directors from 2016-2020. 

Another member of the board and supervisory board since 2010, Jarmo Väisänen was no longer available when Board members were elected this time.

Elected to the board as a new member, Senior Financial Counsellor Minna Pajumaa works in the Ownership Steering Department of the Finnish Prime Minister’s Office. 

Also elected to the board as a new member, Ari Vanhanen, is the CEO and a board member of Colliers International Finland Ltd.

The Nordic LNG supplier, Gasum of Finland, posted a decline in annual revenues as its strategy moved the company forward in providing LNG for shipping and vehicles while withdrawing from the gas transmission business.

Gasum’s revenue was down 4.2 percent year on year, totaling 1.27 billion euros ($1.37Bln) versus 1.17Bln euros in 2018.

The company’s operating profit totaled 141.4M euros, up 13.9 percent year on year from 124.2M euros.

“We took purposeful steps to advance our strategy and developed the Nordic gas market, enabling an even broader offering of low-emission energy solutions in response to growing demand among industrial as well as road and maritime transport customers,” said Chief Executive Johanna Lamminen.

“The decline in revenue was caused primarily by the development in the sales price of gas,” stated the CEO.

She noted that at the turn of the year, the Finnish pipeline gas market was opened up to competition and the unbundling of Gasum’s transmission business was completed as a new company, Gasgrid Finland Oy, commenced its operations.

“Gasum has prepared for the opening up of the gas market and the broadening competition by developing products and services,” said added.

“Our company has decades of expertise in gas and in the provision of comprehensive energy solutions and energy market services,” said the CEO.

“Another important step in the development of the Nordic gas market was taken by us when we signed the deal on the acquisition AGA’s clean energy business and Nauticor’s marine bunkering business from Linde AG,” explained Lamminen.

“The transaction promotes our strategy by further expanding our supply of energy solutions for industrial as well as road and maritime transport needs,” she said.

“It also speeds up the implementation of Gasum’s growth strategy focusing on cleaner transport solutions in the Nordic countries,” added Lamminen.

Gasum continues to build its LNG bunkering business and carried out its 200 ship-to-ship operation in January 2020 as maritime use of the fuel gathers pace in northwest Europe.

The refueling  was carried out by the 5,800 cubic metres of capacity bunkering vessel “Coralius”, a supplier of LNG fuel in the North Sea and the Skagerrak areas since 2017.

The receiving vessel was the Fjord Line’s LNG-powered ferry “Stavangerfjord” as the ship underwent scheduled maintenance at the Fayard shipyard in Odense in Denmark.

Gasum also supplied its first cruise liner with LNG in November 2019 at the Finnish Meyer Turku shipyard in the port of Turku.

Fully owned by the state of Finland, Gasum has LNG import assets in Finland and Sweden and LNG liquefaction as well as marine bunkering services through its former Skangas business, now integrated and operating  under the Gasum banner.

The company’s strategy includes an expansion to provide 50 LNG fuel stations by the early 2020s for Nordic transportation companies in Finland, Sweden and Norway.

Gasum is the largest LNG infrastructure owner in the Nordic countries as well as leader in promoting LNG as a fuel for the maritime sector and for vehicles and industry.

It has its liquefaction plant in Risavika in addition to owning and operating regasification and import terminals in Ora in Norway, Lysekil in Sweden and Pori in Finland.

Gasum is also a shareholder in Finland’s second LNG import terminal in Tornio.

The first day of 2020 will see the Finnish pipeline natural gas market open up to competition and the transmission sector and the wholesale gas market will be unbundled from each other.

Gasum, the Nordic natural gas company and LNG supplier based in Finland, said it had agreed to acquire two businesses from the German group, Linde AG, with one involved in the clean energy sector and another in LNG maritime fuel.

Gasum, the natural gas network company in Finland and a leading Nordic liquefied natural gas supplier, reported nine-month earnings down by 7.2 percent as its clean energy policies proved to be slow in growing profits as it also prepared for the opening up of the market with the spinning off of a new company called Gasgrid Finland.