Vapo is adjusting its reporting schedule to match the natural cycle of its core businesses
Energy or fuels (peat, pellets, forest fuels) and the sale of heating and electricity constitute approximately two thirds of Vapo Group’s turnover, and they have been defined by Vapo as its core businesses. Vapo has decided to focus on the Finnish, Swedish and Estonian markets, all of which are characterised by clear seasonal variation.
Under the current practice of using the calendar year as the financial year, production and the revenue from production and refining activities in these business segments are recorded in different financial years to a large extent. As annual production volumes are highly variable, using the calendar year as the financial year is not the optimal practice from the perspective of the company’s management and its shareholders. The natural annual cycle for these business operations begins in the production and preparation period (summer) and concludes at the end of the heating or sales season (spring). The current use of the calendar year as the financial year artificially divides the heating season into two different reporting periods. For this reason, Vapo has decided to adjust its financial year to match the natural cycle of its operations by having the financial year begin on 1 May and end on 30 April.
In addition, the company is abandoning quarterly reporting in favour of three reporting periods in each financial year. Under the new schedule, the first third of the year begins on 1 May and ends on 31 August. This period covers practically the company’s entire peat production in Finland, Sweden and the Baltic countries, as well as revisions of heating and power plants and the general preparation for the heating season. The second third of the year (1 September – 31 December) and the final third of the year (1 January – 30 April) span the heating season in its entirety. The second third concludes at the turn of the year (31 December), which allows the company to maintain continuity and comparability to previous financial statement information with regard to the balance sheet and key indicators.
– Jyrki Vainionpää, Chief Financial Officer, Vapo Oy, tel. +358 20 790 5609