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%