Fortum benefited from the significant increase in energy prices and the good business results of its German subsidiary Uniper. A dividend of EUR 1.14 per share, increased by 2 cents, is to be distributed to the shareholders.
Sales rose to 50.079 billion euros in the October-December period from 21.279 billion in the same period last year. Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) increased to 1.416 billion euros from 1.247 billion.
The Espoo-based group posted net profit after minorities of 842 million euros in the quarter, compared to 379 million a year earlier. On a comparable basis, a net profit of 693 million euros was recorded, after 610 million euros previously.
Things also went well for the Group over the year as a whole. Sales rose sharply to 112.4 trillion from 49.015 billion. EBITDA on a comparable basis increased to EUR 3.817 billion from EUR 2.434 billion. Comparable net income rose to 1.778 billion euros from 1.483 billion euros in the previous year.
The subsidiary Uniper reported a significantly higher profit in February and benefited from an extremely good result in the global trade segment.
Fortum stops investment projects in Russia
The Finnish energy supplier Fortum is stopping all new investment projects in Russia in response to the Ukraine war. In addition, business with thermal energy generation in Russia is to be further reduced.
“As the CEO of a company with long-standing business relationships and extensive economic activities in Russia, I am shocked and saddened by Russia’s attack on Ukraine and am following the situation with the utmost attention,” Fortum CEO Markus Rauramo said in a written statement.
Operations in the plants in Russia are currently continuing as normal, so that we can “fulfill our obligations to our customers”. However, it is “very difficult to predict” how the “very dynamic situation” will affect future business. Fortum complies with all applicable laws and regulations, including all sanctions. In addition, one prepares for different scenarios, it says in the statement. However, one cannot continue as before, which is why all new investment projects in Russia are to be suspended until further notice.
The Fortum boss also referred to the planned energy transition in Europe. “Recent developments have introduced a new variable into the equation of sustainability, affordability and security of supply: independence,” says Rauramo. “We actively support this through our investments in clean electricity, increasingly clean gas and flexibility.”
As an example, the group cites the decision to apply for a life extension for Finland’s Loviisa nuclear power plant. The German subsidiary Uniper has also resumed planning to build a liquid gas terminal in Wilhelmshaven and has increased its imports of liquid gas (Liquefied Natural Gas – LNG).
Fortum has been active in Russia for more than 60 years. Together with Uniper, the group employs around 7,000 people in 12 power plants there. Uniper is also a major importer of natural gas from Russia, among others, and is the third largest gas storage operator on the European market, according to Fortum. Uniper is also involved in financing the Nord Stream 2 gas pipeline.
The Russian generating assets and involvement in the Nord Stream 2 project have a book value of around 5.5 billion euros, according to Fortum, according to the statement. In 2021, the Russian business contributed around 500 million euros to the comparable operating result, which according to the announcement corresponds to around 20 percent of the overall result of the Fortum Group.
The Fortum share on the Nasdaq Nordic recently lost 4.36 percent to 16.36 euros.
FRANKFURT (Dow Jones)
Leverage must be between 2 and 20
No data
More news about Fortum Oyj
Image sources: Pavel Kapysh / Shutterstock.com