"The third quarter 2018 was characterised by warm and dry weather. Following the dry weather in previous quarters, the Nordic hydro reservoirs further declined compared to the normal level, and the deficit was most prominent in the Swedish reservoirs. This heavily affected Fortum's hydro production volumes, which were historically low, and burdened the results. During the last weeks of the quarter the reservoir levels increased only in Norway.
Power, emission, and commodity prices were volatile during the quarter. Nordic power prices increased on the dry weather and rising commodity and emissions prices, but decreased at the end of the quarter on the increasing precipitation. The Generation division’s achieved power price rose, but it was not enough to compensate for the all-time low hydro volumes. The operative performance of City Solutions and Consumer Solutions was at last year's level, while the performance of the Russia division improved.
Since becoming the largest shareholder in Uniper, Fortum aims to create shareholder value for both companies. Fortum’s CFO Markus Rauramo has taken on his position in the Supervisory Board of Uniper and has been elected as Vice Chairman.
In October the Intergovernmental Panel on Climate Change published its report on limiting global warming to 1.5 °C, highlighting the urgency of determined actions to curb emissions. The message is clear: we need to reach global carbon neutrality by 2050, the power sector should reduce emissions by 100% well before 2050, 70-85% of electricity should come from renewables, and nuclear will play a bigger role. Fortum calls for an ambitious EU climate strategy. A stable, visionary, and long-term political framework for the economy is a prerequisite for European businesses investing in low-carbon technologies to remain competitive in the global market. We continue to be committed to investing in new emission-reducing energy production, as demonstrated by our inauguration of a multi-fuel CHP plant in Zabrze, Poland, and the Solberg wind power park in Sweden during the third quarter.
Finally, I would like to wish a warm welcome to Arun Aggarwal, our new member of the Fortum Executive Management. Arun has an impressive track record in digital transformation and IT leadership and will help Fortum become a digital winner in the ongoing transformation of the energy sector."