Nordic LNG leader Gasum posts loss and drop in income but expands infrastructure and bunkering reach

Tuesday, 23 March 2021
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LNG News Editor: 

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 posted €8.9 million ($10.6M) of net losses in 2020 compared with a net profit of €25.2M in the previous year.

Group income totalled €772.0 million, down from the €988.7M recorded in 2019.

Operations

Gasum said it registered a group adjusted operating profit of €33.8M versus €28.9M in the previous year.

Gasum owns LNG import terminals, a small-scale liquefaction plant and an expanding chain of LNG fuel stations for vehicles in the Nordic region as well as a maritime bunkering network.

It has recently expanded its LNG bunkering operations to France and Singapore after already entering the Antwerp, Amsterdam and Rotterdam region fuel market in Europe.

“Despite the exceptional circumstances, we succeeded in advancing our strategy as planned, which required hard work in an increasingly competitive market,” said Gasum Chief Executive Johanna Lamminen.

“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,” she added.

“Regardless of the uncertainties caused by the Covid-19 pandemic, we were able to ensure business continuity and progress in our projects,” stated the CEO.

Gasum said that maritime transport demand and interest in gas-powered heavy-duty 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,” noted the CEO.

“The transaction expanded our supply of gas solutions in the Nordic nations, particularly in maritime transport and heavy-duty road transport while also expanding our gas filling station network,” she added.

Lamminen said the number of gas-powered HDVs increased by more than 400 new vehicles in the Nordic region during 2020.

“Companies upgrading their fleets included Posti Freight Services in Finland with its 10 new biogas-fueled trucks and Bring Akeri in Sweden with its six new biogas trucks,” she said.

Gasum added that the highlights have included providing shipping customers with a more extensive geographical area by entering into partnership with Pavilion Energy of Singapore.

“We also started regular deliveries of a fuel blend containing renewable liquefied biogas to our maritime transport customer Preem in Sweden,” the company added.

Gasum also entered into a portfolio management cooperation agreement with the Finnish energy company Keravan Energia and expanded its role in the Nordic power market by becoming a member of the Nordic power exchange of Nasdaq OMX. “The importance of gas as an energy source over the longer term will increase further as the Nordic countries are moving towards carbon-neutral energy production,” said Gasum in its market outlook contained in the earnings report.

“The use of gas is projected to grow strongly in the years ahead, particularly in industry and transport. Gasum has prepared for the growth in demand by investing purposefully in the development of the Nordic gas infrastructure for several years already,” stated the company.

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.

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 Gasum to serve customers in Finland, Sweden and Norway.

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