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Scandinavian Biogas Interim report for the period 1 January – 31 December 2018

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The new plant in Skogn, Norway, has been delivering liquid biogas to a customer since September 2018. In Sweden, the Group was awarded a government biogas subsidy, of which SEK 4.8 million was taken up as income during fourth quarter 2018. Consolidated EBITDA was negatively affected during 2018 by one-off costs attributable to court decisions regarding disputes.

Fourth quarter in brief

  • The new plant in Skogn delivered 1.5 MNm3 LBG (liquid biogas) to a customer during October – December 2018
  • Net sales totalled SEK 82.7 million (66.4), an increase of 24.5%
  • EBITDA was SEK 8.9 million (-10.3), an increase of 186.4%
  • The Group posted an operating loss of SEK -12.6 million (-35.5), an improvement of 64.5%
  • The Group posted a loss after tax of SEK -20.4 million (-34.1), an improvement of 40.2%
  • The Group received an advance payment of SEK 21.8 million for the government biogas subsidy, of which SEK 4.8 million was taken up as income
  • The Group received SEK 5.5 million in advance payments for the “Slurry Management” and “Tank Station Mönsterås” projects
  • The EffiSludge for LIFE project received a grant of SEK 7.6 million, of which SEK 3.8 million was allocated to Biokraft AS, Norway
  • The Group received SEK 16 million in subordinated loans from its largest shareholders
  • The dispute with the main supplier to the Södertörn facility was settled in October at terms unfavourable to the Group

Full-year in brief

  • The plant in Skogn delivered 1.6 MNm3 of LBG (liquid biogas) to a customer during September – December 2018
  • Net sales totalled SEK 275.2 million (258.4), an increase of 6.5%
  • EBITDA was SEK -6.2 million (21.6), a decrease of -77.7%. The change is attributable to:
    • one-off cost of SEK 6.6 million (13.6) for a revalued present value calculation of the penalty fee provision
    • one-off cost of SEK 9.6 million attributable to the unfavourable ruling in the dispute with a supplier to the Södertörn facility
    • other expenses of SEK 5.6 million for dispute-related legal services
    • Business Area Norway total EBITDA of SEK -14.8 million
  • The Group posted an operating loss of SEK -71.8 million (-42.2), a decline of -70.3%
  • The Group posted a loss after tax of SEK -109.9 million (-75.0), a decline of -46.5%
  • The Group’s adjusted equity/assets ratio did not meet the corporate bond requirements as of 30 September 2018. A clear majority of bondholders confirmed their support to waive the requirement for the third and fourth quarters of 2018
  • Project financing for the Södertörn facility was refinanced with bank loans at lower rates
  • The Group received a total of SEK 34 million in subordinated loans from its largest shareholders

Significant events after the end of the period

  • A settlement agreement was signed in January 2019 in the dispute with the main supplier to the Södertörn facility, which was concluded in October 2018. The Group will pay the counterparty a total of SEK 15.6 million through the end of August 2019
  • The Group intends to investigate the possibility of conducting a directed share issue of up to SEK 134 million to a number of institutional and private investors and to offer certain shareholders the option of converting loans totalling SEK 34 million into shares. The Company also intends to conduct a rights issue of up to SEK 10 million at the same subscription price as is determined in the directed share issue. In total, the Company intends to issue shares with a value of up to approximately SEK 144 million
  • The new plant at Skogn delivered approximately 1.4 MNm3of LBG during the January – February 2019 period, an increase of about 35% on a monthly basis, as compared with monthly LBG deliveries during fourth quarter 2018
  • The Group sees a risk that the adjusted equity/assets ratio requirement may not be met for the first and second quarters of 2019 and has therefore initiated a process to propose that bondholders waive the requirement 

The interim report for 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, matti.vikkula@scandinavianbiogas.com

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 February 28, 2019, at 13:30 CET.


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