2014-10-23 08:00:03 CEST
2014-10-23 08:00:11 CEST
REGULATED INFORMATION
Fortum - Interim report (Q1 and Q3)
Flexible hydro production partly offset weak electricity prices
Espoo, Finland, 2014-10-23 08:00 CEST (GLOBE NEWSWIRE) -- FORTUM CORPORATION
INTERIM REPORT JANUARY-SEPTEMBER 2014 23 October 2014 at 9:00 EEST
July−September 2014
• Comparable operating profit EUR 183 (167) million, +10%
• Operating profit EUR 149 (96) million, of which EUR -34 (-70) million relates
to items affecting comparability
• Earnings per share EUR 0.10 (0.04), +150%, of which EUR -0.03 (-0.05) per
share relates to items affecting comparability
• Cash flow from operating activities totalled EUR 288 (401) million, -28%
January−September 2014
• Comparable operating profit EUR 915 (979) million, -7%
• Operating profit EUR 2,778 (1,002) million, of which EUR 1,863 (22) million
relates to items affecting comparability, i.e. mainly to the sale of the
electricity distribution business in Finland
• Earnings per share EUR 2.91 (0.84), +246%, of which EUR 2.11 (0.03) per share
relates to items affecting comparability. The main effect relates to the sale
of the Finnish electricity distribution business totalling EUR 2.08 per share
• Sale of the Finnish and Norwegian electricity distribution as well as the
Norwegian heat business finalised
• Cash flow from operating activities totalled EUR 1,310 (1,150) million, +14%
Key figures III/14 III/13 I-III/ I-III/ 2013* LTM**
* 14 13
--------------------------------------------------------------------------------
Sales, EUR million 976 1,060 3,466 3,918 5,309 4,857
--------------------------------------------------------------------------------
Operating profit, EUR million 149 96 2,778 1,002 1,508 3,284
--------------------------------------------------------------------------------
Comparable operating profit, EUR 183 167 915 979 1,403 1,339
million
--------------------------------------------------------------------------------
Profit before taxes, EUR million 95 27 2,721 904 1,398 3,215
--------------------------------------------------------------------------------
Earnings per share, EUR 0.10 0.04 2.91 0.84 1.36 3.42
--------------------------------------------------------------------------------
Net cash from operating 288 401 1,310 1,150 1,548 1,708
activities, EUR million
--------------------------------------------------------------------------------
Shareholders' equity per share, 12.67 10.81 11.28
EUR
--------------------------------------------------------------------------------
Interest-bearing net debt (at end 4,790 7,834 7,793
of period), EUR million
--------------------------------------------------------------------------------
Key financial ratios 2013* LTM**
----------------------------------------------------------------
Return on capital employed, % 9.0 18.9
----------------------------------------------------------------
Return on shareholders' equity, % 12.0 29.0
----------------------------------------------------------------
Net debt/EBITDA 3.7 1.2
----------------------------------------------------------------
Comparable net debt/EBITDA 3.9 2.6
----------------------------------------------------------------
Comparable net debt/EBITDA without Värme financing 3.4 2.2
----------------------------------------------------------------
*) Comparative period figures for 2013 presented in the interim report are
restated due to an accounting change for Fortum Värme and segment reporting
changes; see page 6 as well as Notes 2 and 4.
**) LTM, Last 12 months
Summary of outlook
• Fortum continues to expect the annual electricity demand growth in the Nordic
countries to be on average 0.5% in the coming years
• Capital expenditure guidance: EUR 0.9-1.1 billion in 2014, excluding
potential acquisitions
• Power and Technology Segment's Nordic generation hedges: for the rest of the
calendar year 2014, approx. 70% hedged at EUR 43 per MWh; for the 2015 calendar
year, approx. 40% hedged at EUR 41 per MWh; and for 2016, 10% hedged at EUR 39
per MWh
• The run-rate operating profit (EBIT) target for the Russia Segment RUB 18.2
billion, is to be reached during 2015. The euro-denominated result level will
be volatile mainly due to the translation effect
Fortum's President and CEO Tapio Kuula
”During the third quarter of 2014, electricity demand was flattish both in the
Nordic countries and in Fortum's operating areas in Russia. However, Fortum was
able to use its flexible production portfolio to its advantage in a market
otherwise characterised by low electricity prices.
Hydro production volumes, in particular, contributed positively in the third
quarter and partly offset the negative effects from lower electricity prices.
Heat and distribution volumes were lower and hence impacted negatively on the
results. The new capacity in Russia had a positive effect on the result. In
late September, the third unit at Fortum's Nyagan Power Plant passed the
comprehensive certification tests that precede commissioning. The commercial
operation of the unit is planned to take place by the end of 2014 and capacity
payments are scheduled to start as of 1 January 2015. Cash flow from operating
activities for the company continued strong.
The efficiency programme started in late 2012 to maintain and strengthen
Fortum's flexibility and competitiveness, is close to completion and is
estimated to be successfully finalised by the end of 2014.
We continued the work on preparing and evaluating the possible future
divestment of our Swedish electricity distribution business.
It is important to be prepared for possible industrial restructuring
opportunities in today's market. The successful execution of the ongoing
efficiency programme and divestments of the Finnish and Norwegian electricity
distribution business have further strengthened Fortum's balance sheet. Fortum
possesses the competencies, strategic positioning and balance sheet strength to
take advantage of new opportunities that might occur in the market, and our
target is to grow in line with our strategy."
Efficiency programme 2013-2014
Fortum started an efficiency programme in 2012 in order to maintain and
strengthen its strategic flexibility and competitiveness and to enable the
company to reach its financial targets in the future.
The aim is to improve the company's cash flow by more than approximately EUR 1
billion during 2013-2014 by reducing capital expenditures (capex) by EUR
250-350 million, divesting approximately EUR 500 million of non-core assets,
reducing fixed costs and focusing on working capital efficiency.
At the end of 2014, the cost run-rate is targeted to be approximately EUR 150
million lower compared to 2012, including growth projects.
If headcount reductions are needed, Fortum seeks to limit redundancies whenever
possible. The assessments will therefore be done at a unit level.
At the end of September, Fortum had announced non-core asset divestments of
approximately EUR 500 million since the start of the efficiency programme.The
company has also been able to decrease its costs and improve its working
capital efficiency according to plan. The programme is close to completion and
is estimated to be successfully finalised by the end of 2014.
Assessment of the electricity distribution business
The decision to start a strategic assessment of future alternatives for
Fortum's electricity distribution business was made in 2013.
In March 2014, Fortum completed the divestment of its Finnish electricity
distribution business. In June, Fortum finalised its sale of the Norwegian
electricity distribution business. The sales gains from the both transactions
were booked in Fortum's Distribution Segment in the first and second quarter of
2014, respectively (Note 6).
Fortum is currently preparing and evaluating possibilities to divest its
distribution business in Sweden.
Restatement related to IFRS changes and the new reporting structure
As of 1 January 2014, Fortum has applied the new IFRS 10 Consolidated Financial
Statements and 11 Joint Arrangements standards. The major effect of this
reassessment relates to Fortum Värme, which is treated as a joint venture and
thus consolidated with the equity method (Note 2). Comparative information for
2013 presented in this interim report has been restated accordingly.
The segment information for 2013 has been restated due to the change in the
organisation from 1 March 2014.
As of 2014, presented figures have been rounded and consequently the sum of
individual figures may deviate from the sum presented.
Financial results
July-September
In the third quarter of 2014, Group sales were EUR 976 (1,060) million.
Comparable operating profit totalled EUR 183 (167) million and the reported
operating profit totalled EUR 149 (96) million. Fortum's operating profit for
the period was affected by non-recurring items. Sales gains as well as an IFRS
accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's
power production and nuclear fund adjustments amounted to EUR -34 (-70) million
(Note 4).
Sales by segment
EUR million III/14 III/13 I-III/1 I-III/1 2013 LTM
4 3
--------------------------------------------------------------------------------
Power and Technology 495 496 1,568 1,709 2,252 2,111
--------------------------------------------------------------------------------
Heat, Electricity Sales and 224 255 939 1,094 1,516 1,361
Solutions
--------------------------------------------------------------------------------
Russia 207 210 774 805 1,119 1,088
--------------------------------------------------------------------------------
Distribution 130 217 578 784 1,064 858
--------------------------------------------------------------------------------
Other 14 14 42 43 63 62
--------------------------------------------------------------------------------
Netting of Nord Pool -67 -90 -301 -356 -478 -423
transactions
--------------------------------------------------------------------------------
Eliminations -26 -42 -134 -161 -228 -201
--------------------------------------------------------------------------------
Total 976 1,060 3,466 3,918 5,309 4,857
--------------------------------------------------------------------------------
Comparable operating profit by segment
EUR million III/14 III/13 I-III/1 I-III/1 2013 LTM
4 3
--------------------------------------------------------------------------------
Power and Technology 167 139 601 652 859 808
--------------------------------------------------------------------------------
Heat, Electricity Sales and -4 -3 55 68 109 96
Solutions
--------------------------------------------------------------------------------
Russia 1 -15 102 46 156 212
--------------------------------------------------------------------------------
Distribution 36 59 200 256 332 276
--------------------------------------------------------------------------------
Other -16 -14 -43 -42 -54 -55
--------------------------------------------------------------------------------
Total 183 167 915 979 1,403 1,339
--------------------------------------------------------------------------------
Operating profit by segment
EUR million III/14 III/13 I-III/1 I-III/1 2013 LTM
4 3
--------------------------------------------------------------------------------
Power and Technology 124 44 537 644 922 815
--------------------------------------------------------------------------------
Heat, Electricity Sales and 4 8 116 83 134 167
Solutions
--------------------------------------------------------------------------------
Russia 1 -15 102 46 156 212
--------------------------------------------------------------------------------
Distribution 36 76 2,066 274 349 2,141
--------------------------------------------------------------------------------
Other -16 -17 -44 -45 -53 -52
--------------------------------------------------------------------------------
Total 149 96 2,778 1,002 1,508 3,284
--------------------------------------------------------------------------------
January−September
In January-September 2014, Group sales were EUR 3,466 (3,918) million.
Comparable operating profit totalled EUR 915 (979) million and the reported
operating profit totalled EUR 2,778 (1,002) million. Fortum's operating profit
for the period was affected by non-recurring items, mainly the sale of the
Finnish electricity distribution business, the Norwegian electricity
distribution and heat businesses as well as an IFRS accounting treatment (IAS
39) of derivatives mainly used for hedging Fortum's power production and
nuclear fund adjustments amounting to EUR 1,863 (22) million (Note 4).
The share of profit from associates in January-September was EUR 111 (115)
million, of which Fortum Värme represents EUR 42 (49) million. The share of
profit from Hafslund and TGC-1 are based on the companies' published
second-quarter 2014 interim reports (Note 12).
The Group's net financial expenses were EUR 169 (212) million. Net financial
expenses include changes in the fair value of financial instruments of EUR -10
(-8) million.
Profit before taxes was EUR 2,721 (904) million.
Taxes for the period totalled EUR 134 (157) million. The tax rate according to
the income statement was 4.9% (17.4%). In Finland, the corporate tax rate was
decreased from 24.5% to 20.0% starting 1 January 2014. The tax rate, excluding
the impact of the share of profit from associated companies and joint ventures
as well as non-taxable capital gains, was 19.4% (20.7%).
The profit for the period was EUR 2,587 (748) million. Fortum's earnings per
share were EUR 2.91 (0.84), of which EUR 2.11 (0.03) per share relates to items
affecting comparability. The earnings per share impact from the sale of the
Finnish electricity distribution business was EUR 2.08 per share (Note 6).
Financial position and cash flow
Cash flow
In January-September 2014, total net cash from operating activities increased
by EUR 160 million to EUR 1,310 (1,150) million, mainly due to the EUR 262
million positive impact of realised foreign exchange differences, which were
partly offset with a lower EBITDA. Realised foreign exchange gains and losses
of EUR 216 (-46) million were related to the rollover of foreign exchange
contract hedging loans to Fortum's Swedish and Russian subsidiaries. Capital
expenditures decreased by EUR 146 million to EUR 524 (670) million. Proceeds
from divestments of shares totalled EUR 2,687 (107) million, mainly from the
divestment of the Finnish distribution business as well as the Norwegian
electricity distribution and heat businesses (Note 6). Proceeds from
interest-bearing receivables included EUR 467 million paid by Fortum Värme.
Total net cash used in investing activities was positive EUR 2,677 (-497)
million. Cash flow before financing activities, i.e. financing, increased by
EUR 3,334 million to EUR 3,987 (653) million.
The proceeds were partially used to pay dividends totalling EUR 977 million in
April as well as payments of interest-bearing debt amounting to EUR 2,136
million. Cash and cash equivalents at the end of the period were EUR 2,178
(1,265 at year-end 2013) million.
Assets and capital employed
Total assets decreased by EUR 1,708 million to EUR 21,640 (23,348 at year-end
2013) million, which includes the decrease of non-current assets, EUR 1,057
million. Translation differences decreased intangible assets, property, plant
and equipment as well as participation in associates and joint ventures by EUR
580 million and divestments by EUR 302 million.
Assets of the Finnish distribution business, amounting to EUR 1,173 million,
were presented as Assets held for sale at the end of 2013. Cash and cash
equivalents increased by EUR 913 million.
Capital employed was EUR 18,305 (19,183 at year-end 2013) million, a decrease
of EUR 878 million.
Equity
Total equity was EUR 11,336 (10,124 at year-end 2013) million, of which equity
attributable to owners of the parent company totalled EUR 11,255 (10,024)
million and non-controlling interests EUR 81 (101) million.
The increase in equity attributable to owners of the parent company totalled
EUR 1,231 million and was mainly from the net profit of EUR 2,583 million for
the period, offset by translation differences of EUR -305 million and paid
dividends of EUR 977 million.
Financing
Net debt decreased during January-September 2014 by EUR 3,003 million to EUR
4,790 (7,793 at year-end 2013) million.
At the end of September 2014, the Group's liquid funds totalled EUR 2,178
(1,265 at year-end 2013) million. Liquid funds include cash and bank deposits
held by OAO Fortum amounting to EUR 259 (113 at year-end 2013) million. In
addition to the liquid funds, Fortum had access to approximately EUR 2,2
billion of undrawn committed credit facilities.
The Group's net financial expenses during January-September 2014 were EUR 169
(212) million. Net financial expenses include changes in the fair value of
financial instruments of EUR -10 (-8) million.
Fortum Corporation's long-term credit rating with both S&P and Fitch has
remained unchanged and is A- (negative outlook).
Key figures
For the last twelve months, net debt to EBITDA was 1.2 (3.7 at year-end 2013)
and comparable net debt to EBITDA 2.6 (3.9 at year-end 2013). Fortum is
currently financing Fortum Värme, and these loans, EUR 639 (1,135 at year-end
2013) million, are presented as interest-bearing loan receivables in Fortum's
balance sheet. However, the aim is to refinance the loans during 2014-2015. If
these loans are deducted from the net debt, the last-twelve-months comparable
net debt to EBITDA is 2.2 (3.4 at the year-end 2013).
Gearing was 42% (77%) and the equity-to-assets ratio 52% (43%). Equity per
share was EUR 12.67 (11.28). For the last twelve months, return on capital
employed totalled 18.9% (9.0% at year-end 2013) and return on shareholders'
equity 29% (12.0% at year-end 2013). Both return on capital employed and return
on equity were positively affected by the capital gain from the sale of the
Finnish electricity distribution business as well as the sale of the Norwegian
electricity distribution and heat businesses.
Outlook
Key drivers and risks
Fortum's financial results are exposed to a number of economic, strategic,
political, financial and operational risks. One of the key factors influencing
Fortum's business performance is the wholesale price of electricity in the
Nordic region. The key drivers behind the wholesale price development in the
Nordic region are the supply-demand balance, fuel and CO2 emissions allowance
prices as well as the hydrological situation. The completion of Fortum's
investment programme in Russia is also one key driver to the company's result
growth, due to the increase in production volumes and CSA payments.
The continued global economic uncertainty and Europe's sovereign-debt crisis
has kept the outlook for economic growth unpredictable. The overall economic
uncertainty impacts commodity and CO2 emissions allowance prices, and this
could maintain downward pressure on the Nordic wholesale price for electricity
in the short term. In Fortum's Russian business, the key factors are economic
growth, the rouble exchange rate, the regulation around the heat business, and
further development of electricity and capacity markets. Operational risks
related to the investment projects in the current investment programme are
still valid. In all regions, fuel prices and power plant availability also
impact profitability. In addition, increased volatility in exchange rates due
to financial turbulence could have both translation and transaction effects on
Fortum's financials, especially through the Swedish krona (SEK) and the Russian
rouble (RUB). In the Nordic countries, also the regulatory and fiscal
environment for the energy sector has added risks for utility companies.
Nordic market
Despite macroeconomic uncertainty, electricity is expected to continue to gain
a higher share of the total energy consumption. Fortum continues to expect the
annual growth rate in electricity consumption to be on average 0.5%, while the
growth rate for the nearest years will largely be determined by macroeconomic
development in Europe and especially in the Nordic countries.
During January-September 2014, the price of oil and European Union emissions
allowances (EUA) appreciated, whereas the coal price declined. The price of
electricity for the upcoming twelve months ended practically unchanged in the
Nordic area whereas in Germany it decreased.
In mid-October 2014, the future quotation for coal (ICE Rotterdam) for the rest
of 2014 was around USD 71 per tonne, and the price for CO2 for 2014 was about
EUR 6 per tonne. The electricity forward price in Nord Pool for the rest of
2014 was around EUR 32 per MWh. For 2015, the price was around EUR 31 per MWh,
and, for 2016, around EUR 30 per MWh. In Germany, the electricity forward price
for the rest of 2014 was around EUR 34 per MWh and for 2015 EUR 34 per MWh.
Nordic water reservoirs were about 10 TWh below the long-term average and 2 TWh
above the corresponding level of 2013.
Power and Technology
The Power and Technology Segments Nordic power price typically depends on
factors such as hedge ratios, hedge prices, spot prices, availability and
utilisation of Fortum's flexible production portfolio, and currency
fluctuations. Excluding the potential effects from the changes in the power
generation mix, a 1 EUR/MWh change in the Power and Technology Segment's Nordic
power sales (achieved) price will result in an approximately EUR 45 million
change in Fortum's annual comparable operating profit. In addition, the
comparable operating profit of the Power and Technology Segment will be
affected by the possible thermal power generation volumes and its profits.
The ongoing, multi-year Swedish nuclear investment programmes are expected to
enhance safety, improve availability and increase the capacity of the current
nuclear fleet. The implementation of the investment programmes could, however,
affect availability. Fortum's power procurement costs from co-owned nuclear
companies are affected by these investment programmes through increased
depreciation and finance costs of associated companies.
As a result of the nuclear stress tests in the EU, the Swedish nuclear safety
authority (SSM) has decided to propose new regulations for Swedish nuclear
reactors. The process is on-going and the final proposal is expected by the end
2014. Fortum emphasises that maintaining a high level of nuclear safety is the
highest priority, but considers EU-level harmonisation of nuclear safety
requirements to be of utmost importance.
The process to review the Swedish nuclear waste fees is done in a three-year
cycle, and therefore SSM has given a new proposal for the nuclear waste fees. A
government decision is expected by the end of 2014.
The new Swedish government has proposed to increase the tax on installed
nuclear capacity by 17% as of 2015. Fortum's position is that the tax issue
should be referred to an upcoming parliamentary energy commission in order to
get a broadly established view on how the needs of energy and effect can be
resolved.
Russia
The generation capacity built after 2007 under the Russian Government's
Capacity Supply Agreements (CSA - “new capacity”) receives guaranteed capacity
payments for a period of 10 years. Prices for capacity under CSA are defined in
order to ensure a sufficient return on investments. The issue of prolonged CSA
payments from 10 to 15 years have been under discussion in the Russian
Government; however, no official decisions have yet been made.
Capacity not under CSA competes in the competitive capacity selection (CCS -
“old capacity”). The capacity selection for generation built prior to 2008 (CCS
- “old capacity”) for 2015 was held in September 2014. All of Fortum's capacity
was allowed to participate in the selection for 2015 and the majority of
Fortum's plants were also selected. The volume of Fortum's installed capacity
not selected in the auction totalled 195 MW (approximately 3.7% of Fortum's
total old capacity in Russia) for which Fortum plans to obtain forced mode
status.
The Russia Segment's new capacity will be a key driver for earnings growth in
Russia, as it is expected to bring income from new volumes sold and to also
receive considerably higher capacity payments than the old capacity. However,
the received capacity payment will differ depending on the age, location, size
and type of the plants as well as on seasonality and availability. The return
on the new capacity is guaranteed, as regulated in the CSA. CSA payments can
vary somewhat annually because they are linked to Russian government long-term
bonds with 8 to 10 years maturity. In addition, the regulator will review the
earnings from the electricity-only market three years and six years after the
commissioning of a unit and may revise the CSA payments accordingly.
The value of the remaining part of the investment programme, calculated at the
exchange rates prevailing at the end of September 2014, is estimated to be
approximately EUR 0.3 billion, as of October 2014.
The Russian result is impacted by seasonal volatility caused by the nature of
the heat business, with the first and last quarter being clearly the strongest.
At the time of the acquisition of the Russian subsidiary OAO Fortum in 2008,
the EUR 500 million run-rate level in operating profit (EBIT) target set to be
reached during 2015 in the Russia Segment corresponded to approximately RUB
18.2 billion at the then prevailing euro-rouble exchange rates. As earlier
communicated, the segment's profits are mainly impacted by changes in currency
exchange rates as well as power demand, gas prices and other regulatory
development. Fortum is keeping its rouble-denominated target intact, but,
mainly due to the translation effect, the euro-denominated result level will be
volatile. Currently, the unfavourable exchange balance converts into a lower
profit level in euros. However, every effort to mitigate the negative impacts
is continuously being made.
In 2013, the Ministry of Energy stated that the heat reform should be developed
before changing the current electricity and capacity market model.The Ministry
of Energy proposed a new heat market model (for public discussion), which is
supposed to ensure a transition to economically justified heat tariffs by 2020
and attract investments into the heat sector. In September 2014, the heat
market reform road map was approved by Russian Government. According to the
roadmap the reform shall give heat market liberalization by 2020 or, in some
specific areas, by 2023.
As forecasted by the Russian Ministry of Economic Development, Russian gas
price indexation did not take place in July 2014. However, year-on-year gas
price growth is estimated to be 7.6% in 2014.
Distribution
Fortum is preparing for a possible sale of the Swedish electricity distribution
business. The decision to complete the process is dependent on market
development and development of national regulation, among other factors.
In Sweden, legal processes are under way concerning the appeal filed regarding
the network income regulatory period 2012-2015. The Administrative Court in
Sweden ruled in favour of the network companies in December 2013. The Energy
Market Inspectorate decided to appeal the decision, and was given during leave
to appeal to the Administrative Court of Appeals during the first quarter;
therefore, the process continues. The court hearing is expected in Q4 2014 or
Q1 2015.
The work to define the Swedish network income regulation model for the next
regulatory period 2016-2019 is ongoing. In September 2014, the Swedish
government made a decision regarding the capital base ordinance; however, the
details will be decided by the Energy Market Inspectorate. Decisions are
expected to be made during 2014.
Capital expenditure and divestments
Fortum currently expects its capital expenditure in 2014 to be approximately
EUR 0.9-1.1 billion, excluding potential acquisitions. The Finnish distribution
business is included in the figure until the end of the first quarter 2014 and
the Norwegian distribution business until the end of the second quarter 2014.
The annual maintenance capital expenditure is estimated to be about EUR 400-500
million in 2014, below the level of depreciation. Capex for electricity
distribution in Finland and Norway was approximately EUR 150 million annually.
Fortum will gradually decrease its financing to Fortum Värme, the co-owned
power and heat company operating in the capital area in Sweden, during
2014-2015. At the end of September 2014, Fortum Värme's remaining interest
bearing liability to Fortum is approximately EUR 0.6 billion.
Taxation
The effective corporate income tax rate for Fortum in 2014 is estimated to be
19-21%, excluding the impact of the share of profits of associated companies
and joint ventures, non-taxable capital gains and non-recurring items. In
Finland, the corporate tax rate was reduced from 24.5% to 20% as of 1 January
2014.
The Finnish government decided in June that it will not, after all, introduce a
power plant tax (windfall tax) on nuclear, hydro and wind power built before
2004. The final decision to revoke the tax will be made by the Parliament in
autumn 2014.
In August, the Finnish Board of Adjustment of the Large Taxpayers' Office had
unanimously approved Fortum Corporation's appeal for the income tax assessment
imposed on Fortum for the year 2007 in December 2013. The Tax Recipients' Legal
Services Unit has the right to appeal in the matter (Note 21).
Hedging
At the end of September 2014, approximately 70% of Power and Technology's
estimated Nordic power sales volume was hedged at approximately EUR 43 per MWh
for the rest of 2014. The corresponding figures for the calendar year 2015 were
approximately 40% at approximately EUR 41 per MWh and for the calendar year
2016 approximately 10% at approximately EUR 39 per MWh.
The hedge price for Power and Technology's Nordic generation excludes hedging
of the condensing power margin. In addition, the hedge ratio excludes the
financial hedges and physical volume of Fortum's coal-condensing generation as
well as the segment's imports from Russia.
The reported hedge ratios may vary significantly, depending on Fortum's actions
on the electricity derivatives markets. Hedges are mainly financial contracts,
most of them Nord Pool forwards.
Dividend payment
The Annual General Meeting 2014 decided to pay a dividend of EUR 1.10 per share
for 2013. The record date for the dividend was 11 April 2014, and the dividend
payment date was 22 April 2014.
Espoo, 22 October 2014
Fortum Corporation
Board of Directors
Further information:
Tapio Kuula, President and CEO, tel. +358 10 452 4112
Timo Karttinen, CFO, tel. +358 10 453 6555
Fortum's Investor Relations, Sophie Jolly, tel. +358 10 453 2552, Rauno
Tiihonen, tel. +358 10 453 6150, Marja Mäkinen, tel. +358 10 452 3338 and
investors@fortum.com
The condensed interim financial statements have been prepared in accordance
with International Accounting Standard (IAS) 34, Interim Financial Reporting,
as adopted by the EU. The interim financials have not been audited.
Fortum Corporation's Financial statements bulletin for the year 2014 will be
published on 4 February 2015 at approximately 9.00 EET.
Fortum will publish three interim reports in 2015:
- January-March on 29 April 2015 at approximately 9.00 EEST
- January-June on 17 July 2015 at approximately 9.00 EEST
- January-September on 22 October 2015 at approximately 9.00 EEST
Fortum's Financial statements and Operating and financial review for 2014 will
be published during week 10 at the latest.
Fortum's Annual General Meeting is planned to take place on 31 March 2015 and
the possible dividend related dates planned for 2015 are:
- Ex-dividend date 1 April 2015
- Record date for dividend payment 2 April 2015
- Dividend payment date 14 April 2015
Distribution:
NASDAQ OMX Helsinki
Key media
www.fortum.com
More information, including detailed quarterly information, is available on
Fortum's website at www.fortum.com/investors.
© 2024 Nasdaq, Inc. All Rights Reserved |