Scandinavian Biogas Fuels International AB (publ): Scandinavian Biogas' profitability during the first quarter of 2022 is significantly lower than planned

The lower profitability is mainly due to two factors. Firstly, the production subsidy confirmed by the Swedish government will not be paid for the first half of the year, but only from July 2022 and onwards, and secondly, the changing market situation has pushed up energy and raw material prices sharply, affecting the share that has not been purchased with predefined prices. As the majority of the Group's prices to customers have index adjustments on an annual basis, this will have a negative effect in the short term.

Maintenance costs at the facility in Södertörn have also been higher than normal. The extensive refurbishment that is now being carried out at the facility is partly aiming to make the facility more robust and reducing maintenance needs. Finally, the Group has decided to cancel a planned acquisition, and during the quarter related transaction costs are reported.

The confirmed production subsidy is seen as positive for market development and shows that the Swedish Government sees increased biogas production as an essential part of the work to reduce dependence on fossil energy. The increased prices for energy will also benefit the Group's profitability when new contracts will be signed.

The report for the first quarter of 2022 will be published according to plan on April 28, 2022.

This disclosure contains information that Scandinavian Biogas Fuels International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 11-04-2022 07:30 CET.