Scandinavian Biogas Interim Report for the period 1 January – 30 September 2020 Scandinavian Biogas Fuels International AB (publ) Org.nr. 556528-4733

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Successful refinancing of SEK 200 million credit facility with significantly better terms, and continued stable EBITDA

Third quarter in brief

  • The private credit facility of SEK 200 million was repaid in September and replaced with a new senior credit facility of the same amount.
  • On 1 July 2020 the Company received a negative court ruling for the dispute in Korea.
  • Net sales totalled SEK 81.5 million (87.3), a year-on-year decrease of 5.8%.
  • EBITDA was SEK 22.9 million (22.6).
  • Operating EBITDA for the period was SEK 17.9 million (22.6).
  • The Group posted an operating profit of SEK 1.6 million (0.8).
  • The Group posted a loss after tax of SEK -11.8 million (-14.7).
  • Operating cash flow totalled SEK -14.9 million (-10.9).  

First nine months in brief

  • The Company’s outstanding 2016/2020 bond loan of SEK 230 million was repaid on 10 February 2020 and replaced with a private credit facility of SEK 200 million, which was repaid on 30 September 2020 and replaced with a new senior credit facility with significantly better terms.
  • On 1 July 2020 the Company received a negative court ruling for the dispute in Korea.
  • Net sales totalled SEK 256.1 million (263.8), a year-on-year decrease of 2.9%.
  • Operating EBITDA for the period was SEK 55.3 million (58.8), confirmation that underlying profitability is on a par with the corresponding period last year.
  • EBITDA was SEK 59.8 million (58.8).
  • The Group posted an operating loss of SEK -5.6 million (-6.7).
  • The Group posted a loss after tax of SEK -51.2 million (-50.3).
  • A total negative impact on earnings of SEK 18.4 million was posted due to the judicial decision in South Korea.
  • Operating cash flow totalled SEK 47.0 million (-21.9), due in part to improved underlying profitability.

Significant events after the end of the interim period

A multi-year agreement has been entered into between the Group and a customer in Europe for the supply of liquefied biogas (LBG). It is an important part of Scandinavian Biogas' strategy to increase deliveries of liquid biogas.

On October 22, the Company convened an Extraordinary General Meeting to be held on November 23, 2020. The Board proposes that the Meeting resolves to authorize the Board to issue up to 10 million new shares and a reversed split of shares 10:1. The authorization is proposed to be valid until the next Annual General Meeting.

No other significant events have occurred after the end of the period.

CEO comments on the interim period

‘The year started in a good and satisfactory way in the first quarter, but we are not happy with the second quarter as the pandemic affected us negatively. During the third quarter, however, we were able to ensure an improvement both in the Group's profitability as well as in cash flow. In July, the Company received a surprisingly negative ruling in Korea regarding the dispute with Ulsan City regarding an upgrade facility. The negative impact that this caused has already been recognised in the second quarter.

  

COVID-19 has significantly affected the global and Scandinavian economy and has affected the Group's business somewhat, partly with lower raw gas production in Stockholm and partly with somewhat reduced demand. The Group continues with preparations for planned growth opportunities, focusing on Stockholm LBG and Skogn II investments. The timing of other growth opportunities is affected by financing opportunities for equity and debt, however, the capital market has become stronger after the summer. In the autumn budget, the Government has proposed continued temporary support for biogas production and confirmed preparations for a long-term production support system. Conditions for the Swedish biogas industry are about to be strengthened.’

Matti Vikkula
President and CEO

All financial information in this report pertains to the Group unless otherwise specified. Figures in brackets relate to the year-earlier period.
Every care has been taken in the translation of this report. However, in the event of discrepancies, the original Swedish will supersede the English translation.

All financial information in this report pertains to the Group unless otherwise specified. Figures in brackets relate to the year-earlier period.
Every care has been taken in the translation of this report. However, in the event of discrepancies, the original Swedish will supersede the English translation.

The interim report for the third quarter 2020 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 October 28, 2020, at 16:15 CET.

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