Fortum aims to power production that facilitates the life of the present and future society. Fortum's ambition is to drive the transformation towards a low-emissions energy system and optimal resource efficiency. Our mission is to engage our customers and society to drive the change towards a cleaner world. Our role is to accelerate this change by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value.
The very core of Fortum's DNA are the CO2-free power generation and deep knowledge about how to operate generation assets. This is complemented by our expertise on power markets and trading as well as in combined heat and power production. This is the solid foundation that we build our future on.
Attractive growth and yield
Income streams from power and heat generation and electricity sales.
Strong platforms for growth
- Electricity gaining a higher market share of the total energy consumption. Fortum expects the annual electricity demand growth in the Nordic countries to be about 0,5% in the coming years
Nordic power wholesale and heat market
- Current investments programmes in the Nordics, Poland and Baltic countries will increase the electricity capacity by 7% (800 MW)
- Increased generation volume mainly from Olkiluoto 3 (~3TWh) in Finland
Russian power and heat market
- In Russia, a 85% increase in Fortum’s power generation capacity is reached in early part of 2016
- The targeted operating profit level (EBIT) for the Russia segment, RUB 18.2 billion is expected to be reached during 2017-2018.
Opportunities in the integrating European energy markets
- Leverage the competences in nuclear, hydro and CHP production (combined heat and power)
- Industrial restructuring opportunities
Solid financial performance
- Fortum has a strong financial position and a strong focus on delivering value and stable return.
- Fortum has continuously been a solid dividend payer.
- The dividend policy ensures that shareholders receive a fair remuneration for their entrusted capital, supported by the company’s long-term strategy that aims at increasing earnings per share and thereby the dividend.
- When proposing the dividend, the Board of Directors looks at a range of factors, including the macro environment, balance sheet strength as well as future investment plans.
- 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.
Fortum is driving its shareholder value by:
- Increasing focus in our core competence areas
- CO2 –free hydro, nuclear and energy efficient CHP production
- Leveraging the strong Nordic core
- Creating solid earnings in Russia
- Building platform for future growth
- Demonstrating financial discipline through a range of long-term targets
- Comparable net debt/EBITDA ~ 2.5
- ROCE to be at least 10%