Scandinavian Biogas Fuels International AB (publ): Profit warning mainly driven by problems with commissioning of Skogn II, Norway

2023-01-22 17:30:00

Preliminary unaudited financial statements for the fourth quarter show that EBITDA amounts to about SEK -2 (23) million. For the full year EBITDA amounts to about SEK 19 (90) million. Fourth quarter net sales amounted to approx. SEK 92 (94*) million, a decrease by app. 3 percent compared to the same period previous year. Produced energy for the fourth period amounted to 80 (87*) GWh.

The negative outcome is mainly explained by lost revenue and increased costs attributable to the commissioning of the Skogn II plant in Norway and continued reduced production levels in BA Sweden due to high prices of glycerin. In addition, the result has been impacted by extreme electricity prices, mainly in December, in Norway and Sweden.

The problems with the tech supplier's commissioning of the liquefaction unit in Skogn II led to lost production of Bio-LNG (liquid biogas) during q4.

"The construction work in Skogn II went according to plan, but towards the end of the year the supplier ran into problems with the technology when we started commissioning. Consequently, only a small part of the feedstock delivered into the digestion process could be converted into deliverable Bio-LNG (liquid biogas). We estimate that the problems will be resolved during the first quarter." says Matti Vikkula, CEO Scandinavian Biogas.

Scandinavian Biogas is in an intensive expansion phase and the long-term growth plan stays firm. The demand for Bio-LNG (liquid biogas) for heavy transport is stronger than ever and there is a firm political will to support the expansion of a tenfold increase in biogas production in Europe. The availability of sustainable raw materials from agriculture in Northern Europe is expected to be good.

Scandinavian Biogas publishes Year-end report 2022 on 15 February 2023.

* Excluding a gas distribution business that was closed in 2021.

This disclosure contains information that Scandinavian Biogas Fuels International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-01-2023 17:30 CET.