PRESS RELEASE 8 April 2014
"Fortum’s purpose is to create energy that improves life for present and future
generations. The three pillars of our strategy are a strong Nordic core, solid
earnings growth in Russia, and building a platform for future growth.
Sustainability is also an essential part of our strategy. We will continue to
develop Fortum in accordance with these guidelines, and the sale of the Finnish
electricity distribution business was part of this strategy," said President
and CEO Tapio Kuula at Fortum's Annual General Meeting in Helsinki today, the
8th of April 2014.
"Fortum’s strengths lie in carbon dioxide-free hydro and nuclear as well as in
efficient combined heat and power production. We operate in energy wholesale
and retail markets and continue to develop the business related to electricity
sales by offering our customers new smart products and services to increase
energy efficiency. Alongside the Nordic core and the Russian business, with
careful consideration and prioritising, we are pursuing new growth and future
energy solutions that are in line with our strategy."
"To stop climate change, the world needs increasingly more emissions-free
energy. To produce the energy, nuclear power, which offers emissions-free
energy on a large scale, is also needed," Tapio Kuula explains. "A very
feasible solution economically and environmentally could be found by combining
nuclear power with combined heat and power production in Loviisa. This
so-called CHP-nuclear power would offer a very viable long-term energy solution
for the capital region of Helsinki."
The target level set for the Russian business is challenging
As stated in Fortum's Financial Statements Bulletin in the beginning of
February 2014, the global economy and the weakened exchange rate for the rouble
will make it clearly more difficult to achieve an operating profit level of EUR
500 million run rate after completing the investment programme in 2015.
"We will continue the efforts to achieve the target level set for our Russia
Division after finishing our investment programme next year. Once the political
and economic situation has stabilised, we will determine if there are still
adequate possibilities to achieve the current target or if we should set a new
target level," Kuula said in the Annual General Meeting.
As for the tensed political situation, Tapio Kuula pointed out that significant
economic relations and connections established within trade and industry have a
stabilising effect on general development. The EU and Russia’s interdependence
– in energy issues and in many other areas of business – brings in needed
stability to the relations between the areas.
"Additionally, companies that have operations on both sides of the borders
contribute to increasing the stability in the situation. It is possible to step
up the collaboration even more by creating diverse partnerships between the key
companies in different countries."
Tapio Kuula, CEO
Helena Aatinen, SVP, Corporate Communications
Call back requests, Fortum Media Desk +358 40 198 2843
Read the whole speech by the President and CEO
Further information and materials on Fortum's Annual General Meeting 2014:
Fortum’s purpose is to create energy that improves life for present and future
generations. Catering to the versatile needs of our customers, we generate,
distribute and sell electricity and heat, and offer related expert services.
Our operations focus on the Nordic and Baltic countries, Russia and Poland. In
2013, Fortum’s sales totaled EUR 6.1 billion and comparable operating profit
was EUR 1.6 billion. We employ approximately 9,500 people. Fortum’s shares are
traded on the NASDAQ OMX Helsinki. www.fortum.com