Sweden-headed biogas project developer and fuel producer Scandinavian Biogas Fuels International AB (SBF) has announced that preliminary unaudited financial statements show a loss for the fourth quarter as net sales decreased by approximately 3 percent compared to the same period the previous year as commissioning costs for Skogn II facility in Norway increased along with costs for electricity and glycerine.
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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 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.
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 of approximately 3 percent compared to the same period the previous year. Produced energy for the fourth period amounted to 80 (87) GWh.
The problems with the technology supplier’s commissioning of the liquefaction unit in Skogn II led to the loss of production of liquefied biomethane (bioLNG) during the fourth quarter.
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 bioLNG. We estimate that the problems will be resolved during the first quarter, said Matti Vikkula, CEO of Scandinavian Biogas.
The company is in an intensive expansion phase and the long-term growth plan stays firm. The demand for bioLNG 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.