Interim Report 1 January - 31 March, 2001

Carola Teir-Lehtinen
Senior Vice President
Corporate Communications
 
 
DISTRIBUTION:
Helsinki Exchanges
Key Media
 
 
 
 
FORTUM GROUP
JANUARY-MARCH 2001
Interim financial statements are unaudited.
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
3,202
2,525
11,026
 
Share of profits (losses) of associated companies
 
11
12
46
 
Other operating income
 
 
 
 
14
12
140
 
Depreciation, amortisation and write-downs
 
 
-137
-137
-571
 
Other operating expenses
 
 
 
 
-2,783
-2,215
-9,735
 
Operating profit
 
 
 
 
307
197
906
 
Financial income and expenses
 
 
 
 
-61
-54
-273
 
Profit before extraordinary items
 
 
 
 
246
143
633
 
Extraordinary income
 
 
 
 
0
-
0
 
Extraordinary expenses
 
 
 
 
0
-
-10
 
Profit before taxes
 
 
 
 
246
143
623
 
Income taxes 1)
 
 
 
 
-67
-26
-154
 
Minority interests
 
 
 
 
-21
-3
-46
 
Net profit for the period
 
 
 
 
158
114
423
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share, EUR
 
 
 
 
0.20
0.15
0.55
 
Average number of shares, 1,000 shares
 
 
 
794,571
784,783
787,223
 
 
 
 
 
 
 
 
 
 
1) Accrued taxes for the financial period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED BALANCE SHEET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31
Mar   31
Dec 31
 
EUR mill.
 
 
 
 
2001
2000
2000
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
Fixed assets and other long-term investments
 
 
11,333
10,636
11,712
 
Current assets
 
 
 
 
 
 
 
 
Inventories
 
 
 
 
683
648
746
 
Receivables
 
 
 
 
2,091
1,495
1,933
 
Cash and cash equivalents
 
 
 
 
430
395
437
 
Total
 
 
 
 
3,204
2,538
3,116
 
Total
 
 
 
 
14,537
13,174
14,828
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY AND LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
 
 
 
 
 
 
Share capital
 
 
 
 
2,875
2,640
2,875
 
Other equity
 
 
 
 
2,102
2,094
2,147
 
Total
 
 
 
 
4,977
4,734
5,022
 
Minority interests
 
 
 
 
1,306
125
1,281
 
Provisions for liabilities and charges
 
 
 
209
86
197
 
Deferred tax liabilities
 
 
 
 
1,138
1,248
1,177
 
Long-term liabilities
 
 
 
 
4,161
4,246
4,463
 
Short-term liabilities
 
 
 
 
2,746
2,735
2,688
 
Total
 
 
 
 
14,537
13,174
14,828
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity per share, EUR
 
 
 
 
6.26
6.03
6.32
 
Number of shares, 1,000 shares
 
 
 
 
845,609
784,783
845,609
 
Number of shares,own shares excluded 1,000 shares
 
794,571
784,783
794,571
 
 
 
 
 
 
 
 
 
 
KEY RATIOS
 
 
 
 
Mar 31
Mar 31
Dec 31
 
 
 
 
 
 
2001
2000
2000
 
 
 
 
 
 
 
 
 
 
Interest-bearing net debt, EUR mill.
 
 
 
4,046
4,350
4,626
 
Investments, EUR mill.
 
 
 
 
123
514
3,131
 
Average number of employees
 
 
 
 
15,602
16,081
16,220
 
Return on capital employed, %
 
 
 
 
11.7
8.9
9.4
 
Return on shareholders' equity, %
 
 
 
 
11.8
9.5
8.6
 
Gearing, %
 
 
 
 
64
90
73
 
Equity-to-assets ratio, %
 
 
 
 
44
37
43
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET SALES BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream 
 
 
 
 
502
215
945
 
Oil Refining and Marketing
 
 
 
 
1,941
1,669
7,759
 
Power and Heat Generation and Sales
 
 
 
604
503
1,760
 
Electricity Distribution
 
 
 
 
135
131
467
 
Service
 
 
 
 
77
78
356
 
Engineering
 
 
 
 
104
118
585
 
Other Operations
 
 
 
 
22
21
94
 
Internal invoicing
 
 
 
 
-183
-210
-940
 
Total
 
 
 
 
3,202
2,525
11,026
 
Discontinued Operations
 
 
 
 
-
-
-
 
Net sales
 
 
 
 
3,202
2,525
11,026
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPRECIATIONS BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream 
 
 
 
 
24
23
85
 
Oil Refining and Marketing
 
 
 
 
34
35
147
 
Power and Heat Generation and Sales
 
 
 
43
46
191
 
Electricity Distribution
 
 
 
 
29
27
122
 
Service
 
 
 
 
2
2
7
 
Engineering
 
 
 
 
3
2
9
 
Other Operations and eliminations
 
 
 
 
2
2
10
 
Total
 
 
 
 
137
137
571
 
Discontinued Operations
 
 
 
 
-
-
-
 
Depreciations
 
 
 
 
137
137
571
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING PROFIT BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
 
 
 
51
45
218
 
Oil Refining and Marketing
 
 
 
 
52
4
382
 
Power and Heat Generation and Sales
 
 
 
157
100
211
 
Electricity Distribution
 
 
 
 
56
49
127
 
Service
 
 
 
 
6
4
12
 
Engineering
 
 
 
 
-11
-2
-21
 
Other Operations
 
 
 
 
-5
-1
-20
 
Eliminations
 
 
 
 
1
-2
-3
 
Total
 
 
 
 
307
197
906
 
Discontinued Operations
 
 
 
 
-
-
-
 
Operating profit
 
 
 
 
307
197
906
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENTS BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
 
 
 
16
29
137
 
Oil Refining and Marketing
 
 
 
 
30
27
128
 
Power and Heat Generation and Sales
 
 
 
63
190
2,343
 
Electricity Distribution
 
 
 
 
10
258
489
 
Service
 
 
 
 
1
2
5
 
Engineering
 
 
 
 
2
2
20
 
Other Operations and eliminations
 
 
 
 
1
6
9
 
Total
 
 
 
 
123
514
3,131
 
Discontinued Operations
 
 
 
 
-
-
-
 
Investments
 
 
 
 
123
514
3,131
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IDENTIFIABLE ASSETS BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31
Mar 31
Dec 31
 
EUR mill.
 
 
 
 
2001
2000
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
 
 
 
1,329
1,206
1,284
 
Oil Refining and Marketing
 
 
 
 
1,584
1,645
1,838
 
Power and Heat Generation and Sales 2)
 
 
 
6,098
5,176
6,193
 
Electricity Distribution 2)
 
 
 
 
2,200
2,182
2,263
 
Service
 
 
 
 
24
33
31
 
Engineering
 
 
 
 
49
24
81
 
Other Operations and eliminations
 
 
 
 
144
141
141
 
Total
 
 
 
 
11,428
10,407
11,831
 
Discontinued Operations
 
 
 
 
-
-
-
 
Identifiable assets
 
 
 
 
11,428
10,407
11,831
 
 
 
 
 
 
 
 
 
 
2) Identifiable assets include deferred tax liabilities due to the allocated goodwill: EUR 196 mill. March 31,2001, EUR 259 mill.
March 31, 2000 and EUR 216 mill. December 31, 2000 in Power and Heat Generation and Sales; and EUR 247 mill.
March 31, 2001, EUR 246 mill. March 31, 2000 and EUR 262 mill. December 31, 2000 in Electricity Distribution.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RETURN ON NET ASSETS BY BUSINESS OPERATIONS (SEGMENTS) 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
%
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
 
 
 
15.6
15.4
18.0
 
Oil Refining and Marketing
 
 
 
 
12.2
1.0
22.2
 
Power and Heat Generation and Sales
 
 
 
10.2
8.0
3.8
 
Electricity Distribution
 
 
 
 
10.0
10.1
6.4
 
Service
 
 
 
 
87.3
42.7
32.9
 
Engineering
 
 
 
 
-67.7
-26.2
-35.6
 
 
 
 
 
 
 
 
 
 
3) Return on net assets, % = Operating profit/average identifiable assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIGNIFICANT NON-RECURRING ITEMS IN OPERATING PROFIT BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
EUR mill.
 
 
 
 
Q1/01
Q1/00
2000
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
 
 
 
0
0
2
 
Oil Refining and Marketing
 
 
 
 
-43
-12
32
 
Power and Heat Generation and Sales
 
 
 
-1
-2
14
 
Electricity Distribution
 
 
 
 
0
0
-1
 
Service
 
 
 
 
0
0
0
 
Engineering
 
 
 
 
0
0
2
 
Other Operations and eliminations
 
 
 
 
0
1
23
 
Total
 
 
 
 
-44
-13
72
 
Discontinued Operations
 
 
 
 
-
-
-
 
Non-recurring items
 
 
 
 
-44
-13
72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONTINGENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31
Mar 31
Dec 31
 
EUR mill.
 
 
 
 
2001
2000
2000
 
 
 
 
 
 
 
 
 
 
Contingent liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
On own behalf
 
 
 
 
 
 
 
 
For debt
 
 
 
 
 
 
 
 
Pledges
 
 
 
 
187
295
188
 
Real estate mortgages
 
 
 
 
149
174
156
 
Company mortgages
 
 
 
 
32
27
22
 
Other mortgages
 
 
 
 
54
54
54
 
For other commitments
 
 
 
 
 
 
 
 
Pledges
 
 
 
 
2
86
2
 
Real estate mortgages
 
 
 
 
85
96
87
 
Company mortgages
 
 
 
 
0
1
3
 
Other mortgages
 
 
 
 
7
-
6
 
Sale and leaseback
 
 
 
 
19
21
18
 
Other contingent liabilities
 
 
 
 
385
811
543
 
Total
 
 
 
 
920
1,565
1,079
 
 
 
 
 
 
 
 
 
 
On behalf of associated companies
 
 
 
 
 
 
 
 
Pledges
 
 
 
 
-
5
-
 
Real estate mortgages
 
 
 
 
-
2
-
 
Guarantees
 
 
 
 
235
270
165
 
Other contingent liabilities
 
 
 
 
369
-
368
 
Total
 
 
 
 
604
277
533
 
 
 
 
 
 
 
 
 
 
On behalf of persons referred to in § 11:7 of the Companies Act
 
 
 
Guarantees
 
 
 
 
-
0
-
 
 
 
 
 
 
 
 
 
 
On behalf of others
 
 
 
 
 
 
 
 
Pledges
 
 
 
 
0
0
1
 
Real estate mortgages
 
 
 
 
0
0
-
 
Company mortgages
 
 
 
 
-
-
-
 
Guarantees
 
 
 
 
59
87
140
 
Other contingent liabilities
 
 
 
 
4
3
20
 
Total
 
 
 
 
63
90
161
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
1,587
1,932
1,773
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31
Mar 31
Dec 31
 
EUR mill.
 
 
 
 
2001
2000
2000
 
 
 
 
 
 
 
 
 
 
Operating lease liabilities
 
 
 
 
 
 
 
 
Due within a year
 
 
 
 
70
53
68
 
Due after a year
 
 
 
 
114
140
122
 
Total
 
 
 
 
184
193
190
 
 
 
 
 
 
 
 
 
 
Finance leases have been recognised as assets and liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
Liability for nuclear waste disposal
 
 
 
489
471
489
 
Share of reserves in the Nuclear Waste Disposal Fund
 
-460
-385
-460
 
Liabilities in the balance sheet 4)
 
 
 
29
87
29
 
Excess of security given over obligations
 
 
0
1
0
 
 
 
 
 
 
 
 
 
 
4) Mortgaged bearer papers as security
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
Mar 31
 
 
Mar 31
 
 
Dec 31
 
 
2001
 
 
2000
 
 
2000
 
 
 
 
 
 
 
 
 
Interest and currency
Con-tract
Fair
value
Not
rec-
Con-tract
Fair
value
Not
rec-
Con-tract
Fair
derivatives
or 
notio
nal
value
 
 
ogni-
sed
as an
income
or
notio
nal
value
 
ogni-
sed
as an
income
or
natio
nal
value
value
EUR mill.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forward rate agreements
186
0
0
48
0
0
85
0
Interest rate swaps
4,148
-49
-26
2,329
5
21
3,239
-7
Purchased interest rate options
-
-
-
2
0
0
-
-
Written interest rate options
-
-
-
-
-
-
-
-
 
 
 
 
 
 
 
 
 
Forward foreign exchange
 
 
 
 
 
 
 
 
contracts 5),6)
3,720
52
20
2,247
-41
-34
2,358
48
Currency swaps
3,270
285
60
907
-10
-30
2,308
149
Purchased currency options
174
-4
-4
51
-1
-1
144
1
Written currency options
77
0
0
51
-2
-2
90
1
 
 
 
 
 
 
 
 
 
5) Incl. also closed forward and future positions
 
 
 
 
 
6) Incl. also contracts used for equity hedging
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil futures and forward
Volume
Fair
value
Not recog
Volume
Fair
value
Not recog
Volume
Fair
instruments
 
 
nised as an
 
 
nised as am
 
value
 
 
 
income
 
 
income
 
 
 
 
 
 
 
 
 
 
 
 
1000 bbl
EUR mill.
EUR mill.
1000
bbl
EUR mill.
EUR  mill.
1000 bbl
EUR mill
 
 
 
 
 
 
 
 
 
Sales contracts
11,676
6
6
18,324
9
-2
15,130
21
Purchase contracts
10,269
-9
-9
15,547
12
-2
4,341
-10
Purchased options
1,117
1
1
2,525
1
1
2,093
0
Written options
1,675
0
0
2,525
0
0
1,250
0
 
 
 
 
 
 
 
 
 
Electricity derivatives
Volume
Fair value
Not recog
Volume
Fair value
Not recog
Volume
Fair
 
 
 
nised as an
income
 
 
nised as an income
 
value
 
 
 
 
 
 
 
 
 
 
TWh
EUR mill.
EUR mill.
TWh
EUR mill.
EUR mill.
TWh
EUR mill
 
 
 
 
 
 
 
 
 
Sales contracts
78
-270
-188
28
45
45
70
155
Purchase contracts
73
281
192
22
-64
-48
67
-163
Purchased options
3
5
4
1
0
0
3
0
Written options
5
-9
-7
5
1
1
3
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In addition to other contingent liabilities, a guarantee has been given on behalf of Gasum Oy, which covers 75% of the natural
gas commitments arising from the natural gas supply agreement between Gasum and OOO Gazexport. The fair values of derivative
contracts subject to public trading are based on market prices as of the balance sheet date. The fair values of other derivatives
are based on the present value of cash flows resulting from the contracts, and, in respect of options, on evaluation models.
Derivative contracts are mainly used to manage the group's currency, interest rate and price risk.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Own shares
 
 
 
 
 
 
 
 
Fortum Corporation's subsidiary Fortum Power and Heat Oy has 51,037,520 Fortum Corporation's shares, with a total par value
of EUR 173,527,568.00 and with a book value of EUR 188,928,107.28. This represents 6,04% of the total number of Fortum Corporation's
shares and share capital. Own shares have been eliminated in the
balance sheet of Fortum Group.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY NET SALES BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
Q1/00
Q2/00
Q3/00
Q4/00
2000
Q1/01
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
215
133
183
414
945
502
 
Oil Refining and Marketing
 
1,669
1,909
1,972
2,209
7,759
1,941
 
Power and Heat Generation and Sales
503
384
359
514
1,760
604
 
Electricity Distribution
 
131
106
101
129
467
135
 
Service
 
78
73
83
122
356
77
 
Engineering
 
118
155
135
177
585
104
 
Other Operations
 
21
23
23
27
94
22
 
Internal invoicing
 
-210
-203
-229
-298
-940
-183
 
Total
 
2,525
2,580
2,627
3,294
11,026
3,202
 
Discontinued Operations
 
-
-
-
-
-
-
 
Net sales
 
2,525
2,580
2,627
3,294
11,026
3,202
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY OPERATING PROFIT BY BUSINESS OPERATIONS (SEGMENTS)
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR mill.
 
Q1/00
Q2/00
Q3/00
Q4/00
2000
Q1/01
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil and Gas Upstream
 
45
40
46
87
218
51
 
Oil Refining and Marketing
 
4
137
133
108
382
52
 
Power and Heat Generation and Sales
100
46
2
63
211
157
 
Electricity Distribution
 
49
19
25
34
127
56
 
Service
 
4
-2
2
8
12
6
 
Engineering
 
-2
-4
1
-16
-21
-11
 
Other Operations
 
-1
-10
-4
-5
-20
-5
 
Eliminations
 
-2
-1
-4
4
-3
1
 
Total
 
197
225
201
283
906
307
 
Discontinued Operations
 
-
-
-
-
-
-
 
Operating profit
 
197
225
201
283
906
307
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 EUR = 5,94573 FIM
 
 
 
 
 
 
 
 
 
 
 
 
 
Fortum Corporation