Fortum in brief

Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. Fortum's share is listed on Nasdaq Helsinki.

Fortum 24/06/2019
Currency EUR Volume 1,681,334
Previous Close 18.96 Number of shares (million) 888.29
Change (%) 0.11 Market Cap (million) 16,837.62

Key figures

EUR million 2018 2017 2016
Sales 5,242 4,520 3,632
Comparable EBITDA 1,523 1,275 1,015
Comparable operating profit 987 811 644
Operating profit 1,138 1,158 633
Share of profits of associates and joint ventures 38 148 131
Profit before income taxes 1,040 1,111 595
Earnings per share, EUR 0.95 0.98 0.56
Net cash from operating activities 804 993 621
Shareholders’ equity per share, EUR 13.33 14.69 15.15
Interest-bearing net debt (at the end of the period) 5,509 988 -48
Return on capital employed, % 6.7 7.1 4.0
Comparable net debt/EBITDA 3.6 0.8 0.0
Return on shareholders' equity 6.8 6.6 3.7
Equity to assets ratio, % 54 61 62

Financial targets

Fortum's long-term over the cycle financial targets give guidance on our value creation potential, growth strategy and business activities.

ROCE

Comparable net debt/EBITDA

ROCE

Comparable net debt/EBITDA

Dividend

Fortum's target is to pay a stable, sustainable and over time increasing dividend of 50-80% of earnings per share excluding one-off items

Dividend history (EUR/share)

Dividend history (EUR/share)

Debt portfolio and average interest rate 31 December 2018

Total interest-bearing debt EUR 6,093 million

Debt portfolio and average interest rate 31 December 2018

Total interest-bearing debt EUR 6,093 million

Shares and votes

Shares and votes

Fortum’s business operations Generation City Solutions Consumer Solutions Russia Other
Business description Generation is responsible for Nordic power production. The division comprises nuclear, hydro, wind, and thermal power production, as well as power portfolio optimisation, trading, industrial intelligence, and nuclear services globally. City Solutions is responsible for developing sustainable solutions for urban areas into a growing business for Fortum. The division comprises heating, cooling, waste-to-energy, biomass, and other circular economy solutions as well as solar power production. The business operations are located in the Nordics, the Baltic countries, and Poland. The division also includes Fortum’s 50% holding in Stockholm Exergi (formerly Fortum Värme), which is a joint venture and is accounted for using the equity method. Consumer Solutions comprises electricity and gas retail businesses in the Nordics and Poland, including the customer service, invoicing and debt collection business. Fortum is the largest electricity retail business in the Nordics, with approximately 2.5 million customers across different brands in Finland, Sweden, Norway and Poland. The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s over 29% holding in TGC-1, which is an associated company and is accounted for using the equity method. Other Operations mainly comprises corporate functions as well as Fortum's shareholding in Uniper, which is consolidated as an associated company.
Drivers Nordic power price, generation volumes, availability Fuel mix, heat and power price, gate fees Electricity sales, competition, customer base New capacity and capacity price, electricity and heat price, availability
Comparable operating profit EUR 631 million EUR 113 million EUR 53 million EUR 271 million
Comparable net assets EUR 6,295 million EUR 3,743 million EUR 648 million EUR 2,789 million
Volume Nordic generation 42.0 TWh Power sales 2.7 TWh, Heat sales 10.8 TWh Electricity sales 30.3 TWh, Gas sales 4.1 TWh Power generation 29.6 TWh, Heat sales 20.7 TWh
Generation City Solutions
Business description Business description
Generation is responsible for Nordic power production. The division comprises nuclear, hydro, wind, and thermal power production, as well as power portfolio optimisation, trading, industrial intelligence, and nuclear services globally. City Solutions is responsible for developing sustainable solutions for urban areas into a growing business for Fortum. The division comprises heating, cooling, waste-to-energy, biomass, and other circular economy solutions as well as solar power production. The business operations are located in the Nordics, the Baltic countries, and Poland. The division also includes Fortum’s 50% holding in Stockholm Exergi (formerly Fortum Värme), which is a joint venture and is accounted for using the equity method.
Drivers Drivers
Nordic power price, generation volumes, availability Fuel mix, heat and power price, gate fees
Comparable operating profit Comparable operating profit
EUR 631 million EUR 113 million
Comparable net assets Comparable net assets
EUR 6,295 million EUR 3,743 million
Volume Volume
Nordic generation 42.0 TWh Power sales 2.7 TWh, Heat sales 10.8 TWh
Consumer Solutions Russia
Business description Business description
Consumer Solutions comprises electricity and gas retail businesses in the Nordics and Poland, including the customer service, invoicing and debt collection business. Fortum is the largest electricity retail business in the Nordics, with approximately 2.5 million customers across different brands in Finland, Sweden, Norway and Poland. The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s over 29% holding in TGC-1, which is an associated company and is accounted for using the equity method.
Drivers Drivers
Electricity sales, competition, customer base New capacity and capacity price, electricity and heat price, availability
Comparable operating profit Comparable operating profit
EUR 53 million EUR 271 million
Comparable net assets Comparable net assets
EUR 648 million EUR 2,789 million
Volume Volume
Electricity sales 30.3 TWh, Gas sales 4.1 TWh Power generation 29.6 TWh, Heat sales 20.7 TWh
Other
Business description
Other Operations mainly comprises corporate functions as well as Fortum's shareholding in Uniper, which is consolidated as an associated company.

Business drivers and risks

  • One of the key factors influencing Fortum's business performance is the wholesale price of electricity in the Nordic region
  • Fortum expects the annual electricity demand growth to be approximately 0.5% on average in the coming years
  • Electricity is expected to continue to gain share of total energy consumption
  • Generation sensitivity: achieved price +/- EUR 1/MWh = ~EUR 45 million in annual comparable operating profit
  • Hedging at the end of 2018 for 2019 approximately 75% hedged at EUR 31/MWh and for 2020 approximately 45% hedged at EUR 29/MWh
  • Annual CAPEX estimate excluding acquisitions in 2019 in the range of EUR 600-650 million (maintenance CAPEX at approximately EUR 300 million, well below the level of depreciation)
  • The effective tax rate estimate for 2019 is 19-21%

Fortum's carbon exposure among the lowest in Europe

g CO2/kWh electricity, 2017

Fortum's power generation in 2018

Total generation 74.6 TWh

Fortum's power generation in 2018

Total generation 74.6 TWh

Fortum's heat production in 2018

Total production 29.8 TWh

Fortum's heat production in 2018

Total production 29.8 TWh

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