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Gasum reports ‘expected’ drop in profits, increase in demand for biogas

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Gasum’s operating profit was 21% down year on year, according to the company’s second-quarter report, but demand for biogas is increasing.

The firm’s operating profit was reported at €17.5 million compared to €22.1 million in 2019. Its operating profit margin in the reporting period H1 was up by 1.6% to 5.8%, compared to 4.2% in 2019. Gasum Group said that while the revenue was “clearly lower” compared to last year, revenue was primarily affected by the price development of gas in Europe, which was expected by the company.

The first half of 2020 saw the company take its strategy forward, despite the uncertainties brought about by the COVID-19 pandemic, according to Gasum Group CEO Johanna Lamminen. “We have continued implementing our projects as planned and so far the pandemic has only had minor impacts on our business,” said Lamminen.

“We have safeguarded the continuity of our business by ensuring the health and safety of our employees and have done everything we can to secure the energy supply, gas sourcing and distribution as well as safe and secure logistics in our recycling waste services.

“I would like to thank our employees, customers and partners for well-functioning cooperation in what is a challenging operating environment. Our financial performance during H1 was in line with our expectations.”

Gasum Group finalised several projects in the first half of 2020. During Q2, the firm closed its acquisition of Linde AG’s LNG and biogas business and Nuticor’s Marine Bunkering businesses. Lamminen said: “The acquisition has helped us to further strengthen our capacity to offer gas solutions, particularly in maritime and heavy-duty transport, in the Nordic countries.

“In conjunction with the transactions, we also considerably expanded our gas filling station network and are able to ensure our customers have access to a competitive and low-emission energy.”

Lamminen went on to say that biogas is “increasingly attracting interest” among forerunners in the maritime transport sector. Gasum delivered liquefied biogas for the first time to ESL Shipping’s vessel Viiki. “During Q2, we promoted the regional circular economy in our biogas business in northern Finland by concluding a contract with municipal waste management company Napapiirin Residdum,” said Lamminen. “In future, biowaste from residents in Rovaniemi, Ranua and Pello will be turned into renewable biogas and recycled nutrients at our biogas plant in Oulu.

“We also decided to invest in building a new biogas plant in Götene, Sweden.”