Scandinavian Biogas Interim Report for the period 1 July – 30 September 2018
The plant in Skogn, Norway, has been delivering liquid biogas to the customer since September 2018. The Group’s EBITDA was negatively affected by one-off costs attributable to court rulings.
Third quarter in brief
- The first deliveries of liquid biogas from the plant in Skogn were delivered to the customer in September 2018.
- Net sales totalled SEK 63.0 million (60.7).
- EBITDA was SEK -14.5 million (+9.2 MSEK) and includes one-off costs of SEK 16.2 million attributable to court rulings.
- The Group posted a loss after tax of SEK -45.7 million (-17.1), which amount includes court-ordered legal expenses and interest.
- The Swedish government took a decision in early July 2018 on government biogas support.
- The Group launched an action programme to improve profitability, primarily at Södertorn, and initiated a re-organisation process.
- The court in Ulsan handed down a decision unfavourable to the Group in the penalty fee dispute.
First three quarters in brief
- Commissioning of the liquid biogas plant in Skogn began in late June 2018.
- Net sales totalled SEK 192.5 million (191.9).
- EBITDA was SEK -15.1 million (+31.9). The change is attributable to:
- one-off cost of SEK 6.6 million for a revalued present value calculation of the penalty fee provision
- one-off cost of SEK 9.6 million attributable to the dispute with a supplier to the Södertörn facility
- other expenses of SEK 5.6 million for dispute-related legal services
- commissioning of plant in Skogn: SEK 4.7 million (Business Area Norway total EBITDA of SEK -12.2 million)
- the year-on-year decrease was otherwise primarily due to increased operational and maintenance costs at Södertörn, higher substrate costs, and an increased level of the penalty fee in South Korea in 2018.
- The Group posted a loss after tax of SEK -89.5 million (-40.9).
- Project financing for the Södertörn plant was refinanced with bank loans at lower rates.
- The Group received a total of SEK 18 million in subordinated loans from its largest shareholders.
Significant events after the end of the period
- The plant in Skogn delivered 0.5 MNm3 of LBG to the customer during October 2018.
- Government biogas support from the Board of Agriculture for the Södertörn plant is expected to exceed SEK 20 million over the next 12 months, beginning in early October 2018.
- The arbitrator in the dispute with a main supplier to the Södertörn plant issued a decision unfavourable to the Group in October.
- The Group’s adjusted equity/assets ratio did not meet the corporate bond requirements as at 30 September 2018. Nearly 47% of the bondholders have confirmed their support for the Group’s proposal to waive the adjusted equity/assets ratio requirement for the third and fourth quarters of 2018.
The interim report for the third quarter 2018 for Scandinavian Biogas Fuels International AB (publ) is now available on www.scandinavianbiogas.com.
For further information, contact Matti Vikkula, CEO and president,
+46 70 597 99 38, firstname.lastname@example.org
The information in this press release is such that Scandinavian Biogas Fuels International AB (publ) must disclose in accordance with the EU Market Abuse Regulation (EU MAR) No. 596/2014. The information was submitted for publication on November 9 2018, at 16:15 CET.