Fortum in brief

Fortum is a European energy company with activities in more than 40 countries. We provide our customers with electricity, gas, heating and cooling as well as smart solutions to improve resource efficiency. Together with our subsidiary Uniper, we are the third largest producer of CO2-free electricity in Europe. Our 20,000 professionals give us the skills, resources, and reach to empower the energy evolution toward a cleaner world. Fortum's share is listed on Nasdaq Helsinki and Uniper's share on the Frankfurt Stock Exchange.

Fortum 23/06/2022
Currency EUR Volume 1,438,405
Previous Close 15.96 Number of shares (million) 888.29
Change (%) -3.71 Market Cap (million) 14,172.74
Fortum strategy – Driving the clean energy transition and delivering sustainable financial performance
For a cleaner world
Transform own operations to carbon neutral
  • Phase out and exit coal
  • Transform gas-fired generation towards clean gas
Strengthen and grow in CO2-free power generation
  • Supply significant flexible and reliable CO2-free power generation
  • Grow sizeable portfolio of renewables
Leverage strong position in gas to enable the energy transition
  • Provide security of supply and flexibility in the power system
  • Secure supply of gas for heat, power, and industrial processes
Partner with industrial and infrastructure customers
  • Provide decarbonisation and environmental solutions
  • Build on first-mover position in hydrogen
Value creation targets
Carbon neutral as a Group latest by 2050, in line with the Paris Agreement, and in our European generation latest by 2035
Sustainable financial performance through attractive value from investments, portfolio optimisation, and benchmark operations
Strong financial position and over time increasing dividend
Fortum strategy – Driving the clean energy transition and delivering sustainable financial performance
For a cleaner world
Transform own operations to carbon neutral
  • Phase out and exit coal
  • Transform gas-fired generation towards clean gas
Strengthen and grow in CO2-free power generation
  • Supply significant flexible and reliable CO2-free power generation
  • Grow sizeable portfolio of renewables
Leverage strong position in gas to enable the energy transition
  • Provide security of supply and flexibility in the power system
  • Secure supply of gas for heat, power, and industrial processes
Partner with industrial and infrastructure customers
  • Provide decarbonisation and environmental solutions
  • Build on first-mover position in hydrogen
Value creation targets
Carbon neutral as a Group latest by 2050, in line with the Paris Agreement, and in our European generation latest by 2035
Sustainable financial performance through attractive value from investments, portfolio optimisation, and benchmark operations
Strong financial position and over time increasing dividend

Key figures*

EUR million 2021 2020 2019
Sales 112,400 49,015 5,447
Comparable EBITDA 3,817 2,434 1,766
Comparable operating profit 2,536 1,344 1,191
Operating profit -588 1,599 1,118
Share of profit/loss of associates and joint ventures 192 656 744
Profit before income taxes -289 2,199 1,728
Earnings per share, EUR 0.83 2.05 1.67
Net cash from operating activities 4,970 2,555 1,575
Shareholders’ equity per share, EUR 13.66 14.58 14.61
Financial net debt (at period-end) 789 7,023 4,833
Adjusted net debt (at period-end) 3,227 9,784 4,978
Financial net debt/comparable EBITDA 0.2 2.9 -

* Uniper has been consolidated as a subsidiary from 31 March 2020. Previously, Uniper's contribution to the income statement was recognised in Share of profit/loss of associates and joint ventures.

Dividend

Fortum's dividend policy is to pay a stable, sustainable, and over time increasing dividend.

Dividend per share (EUR) history

* Extra dividend
** Proposal by the Board of Directors

Dividend per share (EUR) history

* Extra dividend
** Proposal by the Board of Directors

Financial targets

Financial targets give guidance on Fortum's view of the company's long-term value creation potential, its growth strategy and business activities. The long-term financial targets are:

- Financial net debt/comparable EBITDA below 2x
- Hurdle rates for new investments of WACC
+100 bps for green investments
+200 bps for other investments

Fortum continues to be committed to maintaining a rating of at least BBB.

Financial net debt/comparable EBITDA

* Following the consolidation of Uniper, Fortum has updated its definition of net debt and uses financial net debt and adjusted net debt. Comparable EBITDA is defined as an alternative performance measure and used as a component in the capital structure target 'Financial net debt-to-Comparable EBITDA'. In 2020, Comparable EBITDA includes contribution from Uniper for the period of 1 April to 31 December 2020 since Uniper was consolidated as a subsidiary from 31 March 2020. Until 31 March 2020, Uniper's contribution to the income statement was recognised in the Share of profit/loss of associates and joint ventures.

Financial net debt/comparable EBITDA

* Following the consolidation of Uniper, Fortum has updated its definition of net debt and uses financial net debt and adjusted net debt. Comparable EBITDA is defined as an alternative performance measure and used as a component in the capital structure target 'Financial net debt-to-Comparable EBITDA'. In 2020, Comparable EBITDA includes contribution from Uniper for the period of 1 April to 31 December 2020 since Uniper was consolidated as a subsidiary from 31 March 2020. Until 31 March 2020, Uniper's contribution to the income statement was recognised in the Share of profit/loss of associates and joint ventures.

Shares and votes

Shares and votes

Fortum's power generation in 2021

Total generation 188.1 TWh

Fortum's power generation in 2021

Total generation 188.1 TWh

Fortum's heat production in 2021

Total production 33.4 TWh

Fortum's heat production in 2021

Total production 33.4 TWh

Business

Comparable operating profit in 2021 Comparable net assets at 31 Dec 2021 Volume in 2021
Generation is responsible for Nordic power generation. The segment comprises CO2-free nuclear, hydro, and wind power generation, as well as power portfolio optimisation, trading, market intelligence, thermal power for the capacity reserve, and global nuclear services. The segment does not include the Nordic hydro and nuclear power generation or the trading activities of Uniper. As of 31 March 2020, the segment includes Generation’s proportionate share of OKG.
MEUR 1,110
MEUR 6,336
Nordic generation 46.8 TWh
The Russia segment comprises power and heat generation and sales in Russia. The segment includes Fortum’s fully owned power plants and its joint ventures for building and operating approximately 3.4 GW of renewable power generation and for power and heat sales, as well as Fortum’s more than 29% holding in TGC 1. These joint ventures and the associated company are accounted for using the equity method. The segment does not include Uniper’s Russian subsidiary Unipro.
MEUR 261
MEUR 2,508
Power generation 28.6 TWh, Heat production 17.1 TWh
City Solutions is responsible for sustainable solutions for urban areas. The segment comprises heating, cooling, waste-to-energy, and other circular economy solutions, as well as solar power generation, services, and development of new biomass-based businesses. The business operations are located in the Nordics, Poland, and India. The segment has also included Fortum’s 50% holding in Stockholm Exergi Holding AB, which was a joint venture accounted for using the equity method. Stockholm Exergi Holding AB was divested in September 2021. The segment does not include the operations of Fortum’s subsidiary Uniper.
MEUR 135
MEUR 2,456
Power sales 3.3 TWh, Heat sales 10.0 TWh
Consumer Solutions is responsible for the electricity and gas retail businesses in the Nordics, Poland, and Spain, including related customer service and invoicing businesses. Fortum is the largest electricity retail business in the Nordics, with approximately 2.2 million customers across different brands in Finland, Sweden, Norway, Poland, and Spain. The business provides electricity, as well as related value-added and digital services, mainly to retail customers.
MEUR 52
MEUR 1,125
Electricity sales 31.5 TWh, Gas sales 6.0 TWh
The Uniper segment comprises Fortum’s majority ownership in Uniper, a subsidiary of Fortum. Uniper is a leading international energy company with activities in more than 40 countries. Its business is the secure provision of energy and related services. Its main activities include power generation in Europe and Russia as well as global energy trading and optimisation, which Uniper reports in three businesses – European Generation, Global Commodities, and Russian Power Generation – in its financial statements. Approximately 50% of the power generating capacity is gas-based, 25% coal-based, approximately 15% hydro- or nuclear-based, and 10% is other. The segment includes Uniper’s proportionate share of OKG.

MEUR 1,120

MEUR 4,971
Generation 110.0 TWh
Generation Russia
Business Business
Generation is responsible for Nordic power generation. The segment comprises CO2-free nuclear, hydro, and wind power generation, as well as power portfolio optimisation, trading, market intelligence, thermal power for the capacity reserve, and global nuclear services. The segment does not include the Nordic hydro and nuclear power generation or the trading activities of Uniper. As of 31 March 2020, the segment includes Generation’s proportionate share of OKG.

The Russia segment comprises power and heat generation and sales in Russia. The segment includes Fortum’s fully owned power plants and its joint ventures for building and operating approximately 3.4 GW of renewable power generation and for power and heat sales, as well as Fortum’s more than 29% holding in TGC 1. These joint ventures and the associated company are accounted for using the equity method. The segment does not include Uniper’s Russian subsidiary Unipro.

Comparable operating profit in 2021 Comparable operating profit in 2021
MEUR 1,110 MEUR 261
Comparable net assets at 31 Dec 2021 Comparable net assets at 31 Dec 2021
MEUR 6,336 MEUR 2,508
Volume in 2021 Volume in 2021
Nordic generation 46.8 TWh

Power generation 28.6 TWh, Heat production 17.1 TWh

City Solutions Consumer Solutions
Business Business
City Solutions is responsible for sustainable solutions for urban areas. The segment comprises heating, cooling, waste-to-energy, and other circular economy solutions, as well as solar power generation, services, and development of new biomass-based businesses. The business operations are located in the Nordics, Poland, and India. The segment has also included Fortum’s 50% holding in Stockholm Exergi Holding AB, which was a joint venture accounted for using the equity method. Stockholm Exergi Holding AB was divested in September 2021. The segment does not include the operations of Fortum’s subsidiary Uniper. Consumer Solutions is responsible for the electricity and gas retail businesses in the Nordics, Poland, and Spain, including related customer service and invoicing businesses. Fortum is the largest electricity retail business in the Nordics, with approximately 2.2 million customers across different brands in Finland, Sweden, Norway, Poland, and Spain. The business provides electricity, as well as related value-added and digital services, mainly to retail customers.
Comparable operating profit in 2021 Comparable operating profit in 2021
MEUR 135 MEUR 52
Comparable net assets at 31 Dec 2021 Comparable net assets at 31 Dec 2021
MEUR 2,456 MEUR 1,125
Volume in 2021 Volume in 2021
Power sales 3.3 TWh, Heat sales 10.0 TWh Electricity sales 31.5 TWh, Gas sales 6.0 TWh
Uniper
Business
The Uniper segment comprises Fortum’s majority ownership in Uniper, a subsidiary of Fortum. Uniper is a leading international energy company with activities in more than 40 countries. Its business is the secure provision of energy and related services. Its main activities include power generation in Europe and Russia as well as global energy trading and optimisation, which Uniper reports in three businesses – European Generation, Global Commodities, and Russian Power Generation – in its financial statements. Approximately 50% of the power generating capacity is gas-based, 25% coal-based, approximately 15% hydro- or nuclear-based, and 10% is other. The segment includes Uniper’s proportionate share of OKG.
Comparable operating profit in 2021
MEUR 1,120
Comparable net assets at 31 Dec 2021
MEUR 4,971
Volume in 2021
Generation 110.0 TWh
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