LNG Terminal Vessel Exemplaria Incurs Loss of EUR 25.2 Million Despite Ongoing Expansion Efforts

LNG terminal vessel Exemplaria, operated by Floating LNG Terminal Finland Oy, incurred a loss of EUR 25.2 million last year. The company began operations in May 2022 and generated revenue for the first time with a turnover of 39.8 million euros. However, operating expenses exceeded net sales, resulting in an operating loss of 16.3 million euros in 2022.

Despite the costs related to construction and operations, terminal operations did not officially commence until last year. The Exemplaria serves to re-vaporize liquefied natural gas into gas which is then transferred to the existing gas network and the Baltic via the Balticconnector gas pipeline. Commercial operations began in January 2023 after ramping up and optimizing operations.

The costs of the company mainly stem from ship rental costs, which are the most significant expense item. Furthermore, operational costs for daily terminal running also contribute to the company’s expenses. The company’s equity capital is EUR 85.25 million, with an additional group grant of 18.1 million euros. Gasgrid Finland Oy is the parent company, with a group turnover of 133.3 million euros last year, which also resulted in a loss due to the LNG terminal ship.

Improvements have been made to the terminal to accommodate smaller ships and expand services, allowing the loading of LNG onto smaller vessels and delivery to terminals outside Finland’s gas network. Despite ongoing development and expansion efforts, a detailed assessment of the company’s financial situation is yet to be made. However, Gasgrid CEO Satu Mattila is optimistic about a better financial outlook for the current year.

In December 2022, Exemplaria arrived at Inkoo port in Finland as a floating LNG terminal ship with a volume of approximately 151,000 cubic meters that serves to re-vaporize liquefied natural gas into gas which is then transferred to existing gas networks and pipelines.

The Exemplaria has been fully booked for capacity reservations so far this year despite its ongoing development and expansion efforts.

While improvements have been made over time to accommodate smaller ships and expand services beyond Finland’s borders, there remains no detailed assessment yet on how financially viable this business model will be long term.

Overall however Mattila remains hopeful that things will improve financially for this business venture soon enough as they continue their expansion plans while focusing on meeting their clients’ needs effectively.