Implementation of the growth plan is progressing, Klimatklivet has awarded the Group investment grants of SEK 135 million in Sweden, and the Skogn II project in Norway is launched

• Energy sold, the highest since the outbreak of covid-19, was 90 (100) GWh. The decrease is explained by lower production due to covid-19 and low-capacity utilization during January in Norway.
• Total operating income decreased by 9.1 percent and was SEK 105.3 (115.8) million. The decrease is explained by lower production and a delay in the biogas subsidy in Sweden, which amounted to SEK 0,0 (4.5) million.
• Net sales totalled SEK 97.5 (97.1) million.
• Organically and adjusted for items affecting comparability amounting to SEK 11.4 million, total operating income decreased by 10.7 percent to SEK 93.2 (104.5) million.
• EBITDA was SEK 16.9 (31.1) million.
• Operative EBITDA for the period was SEK 16.9 (24.4) million. The first quarter of 2020 includes SEK 4.5 million in biogas subsidies.
• Loss for the period was SEK -7.3 (-2.0) million.
• Earnings per share was SEK -0.24 (-0.12).
• Operating cash flow totalled SEK -2.4 (35.3) million. Cash flow before changes in working capital amounted to SEK 16.4 (22.9) million. 
• Maintenance work in Norway has been completed and the Skogn plant has been fully operational since the beginning of February.
• Klimatklivet has granted the Group SEK 135 million in investment grants for the expansion of LBG production capacity in Sweden

Significant events after the end of the period

• The Board has decided to start the expansion of the Norwegian liquid biogas plant (LBG) in Skogn, outside Trondheim. The planned investment of approximately NOK 170 million will increase the production capacity of liquid biogas at Skogn corresponding to 35 GWh. The facility will be operational in 2022.
• Scandinavian Biogas has mandated Nordea as sole financial advisor to evaluate its debt financing options, including a potential
  senior secured green bond and a potential revolving credit facility.

We have seen a clear and gradual recovery since the third quarter of 2020. Compared to the fourth quarter, sold GWh increased by 5 percent, reaching the highest volume since the pandemic started.

Compared to the first quarter of 2020, which was relatively unaffected by the pandemic, GWh sold decreased by 10 percent, totalling 90 (100) GWh. The decline is mainly explained by the negative impact of the pandemic on demand in Sweden, delayed Swedish production subsidies and continued disruptions and maintenance work in the Norwegian operations in January.

Net sales for the quarter were unchanged at SEK 97.5 million. Pro forma net sales decreased by 14 percent, which is explained by a normalised first quarter for Ekdalens Biotransporter. Total operating income decreased by nine percent and amounted to SEK 105.3 million. Operative EBITDA for the period fell by 31 percent and amounted to SEK 16.9 million, corresponding to a margin of 17 percent.

The decision on the production subsidies in Sweden for biogas investments for 2021 was delayed, but in April we received a positive response and estimate that the total amount will be the same as last year, to be paid out over a 9-month period (April–December 2021). The delay has affected the first quarter results but is not expected to affect the full annual results in 2021 compared to 2020.

In February, we passed an important milestone when Klimatklivet awarded the Group investment grants of SEK 135 million earmarked for the expansion of liquid biogas (LBG) production capacity and the liquefaction of a large part of the biogas already produced at our facilities in the Stockholm region. The LBG capacity of the plants will be increased to 220 GWh, with a 40 GWh increase in biogas production. The total investment for this phase is estimated at around SEK 300 million.

The Norway business area successfully completed maintenance activities in January, and liquid biogas (LBG) production is fully operational as of the beginning of February. The stabilisation enabled increased capacity utilisation, and production increased by 42 percent compared to the previous quarter in 2020. Compared to the first quarter of 2020, GWh sold decreased by 12 percent, which is mainly explained by the production disruptions that have now been resolved. We expect a continued recovery after a return to normal production and full capacity utilisation.

In April, the investment project Skogn II was launched in Norway. Skogn is the world's largest LBG producer. The long-term goal for Skogn is to double its annual production capacity of liquid biogas from the current 125 GWh to 250 GWh by 2024. The investment project in Skogn has been divided into two phases, and we have now decided to start the first phase, Skogn II. The total investment for this phase is estimated at about NOK 165 million.

In the Korea business area, which accounts for about 15 percent of turnover, sold GWh decreased by 10 percent.

In summary, we passed several important milestones in the first quarter, and we are on track with our growth plan for 2024.

Matti Vikkula
President and CEO

Significant events in the first quarter of 2021

Klimatklivet grants SEK 135 million
Klimatklivet has granted Scandinavian Biogas SEK 135 million in investment grants. The grants relate to projects for the expansion of production capacity and the liquefaction (LBG) of biogas produced at the Group's plants in the Stockholm region.

Gradual recovery of volumes sold
Energy sold, the highest since covid-19, amounted to 90 (100) GWh. The decrease is explained by lower production due to covid-19 and low capacity utilization in January in Norway.

Successful maintenance in Norway
The maintenance work in Norway was completed at the beginning of the year, and the plant has been back in full operation since February.

DELAYED BIOGAS SUBSIDIES will be paid starting Q2 2021
As anticipated, the Swedish Board of Agriculture confirmed in early 2021 that the total biogas subsidy scheme will amount to SEK 200 million for the year, with applications accepted from April through December 2021. Management expects the total subsidy for 2021 to be paid according to plan, although over a nine-month, rather than twelve-month, period. No payments will be received under the scheme during the first quarter.

Anders Bengtsson is proposed as the new chairman of the Board
Göran Persson, chair of the Scandinavian Biogas Board of Directors since 2009, and Andreas Ahlström have declined re-election. The Nomination Committee proposes the re-election of Sara Anderson and David Schelin, and the election of Petra Einarsson, Tina Helin and Håkon Welde. The Nomination Committee also proposes that Anders Bengtsson be elected as the new Chairman of the Board.

Other information

Contacts
Matti Vikkula, President & CEO, phone: +46 70 597 99 38
Anna Budzynski, CFO, phone: +46 70 043 43 13

This information is information that Scandinavian Biogas Fuels International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on behalf of the contact persons on Thursday, April 29, 2021 at 7:30 am

Scandinavian Biogas Fuels International AB (publ)
company registration number 556528-4733,
info@scandinavianbiogas.com, www.scandinavianbiogas.se

A press and analyst meeting is scheduled for Thursday, 29 April at 10:20 am
Investors, analysts and media are invited to a conference via Teams, at which the report will be presented by Matti Vikkula, CEO and Anna Budzynski, CFO. The presentation will be held in English followed by a Q&A-session. The meeting will be recorded and published within an hour after the presentation.

Link to join the meeting >> Scandinavian Biogas 2021-Q1 presentation via TEAMS . If this is your first-time using Teams, you will be asked to download an app.
The presentation will be uploaded one hour before the presentation.

Calendar
Annual General Meeting, 29 April 2021
Interim Report January–June 2021

, 20 Aug 2021
Interim Report January–September 2021, 29 Oct 2021
Financial Statement January–December 2021, 17 Feb 2021
2021Annual Report, 31 March 2022