Fortum has decided to assess the future alternatives, including divestment, of its electricity distribution business. In accordance with its strategy, Fortum seeks in growth low-carbon power generation, energy-efficient combined heat and power (CHP) production and customer offerings. The assessment has no impact on Fortum's electricity distribution customers and excludes the company's electricity retail business. Fortum expects to conclude the assessment during 2013.
Distribution is a regulated business that has yielded a stable, somewhat over 8% comparable return on net assets. Fortum's Distribution business area's comparable EBITDA for the last 12 months at the end of the third quarter 2012 was EUR 466 million.
Fortum sees that its distribution business holds value potential that could be captured to the fullest extent in a different setting. Furthermore, Fortum’s core-competence, where it seeks growth, is the production and sales of low-carbon power and energy-efficient heat.
Fortum is the leading electricity distribution company in the Nordic countries with altogether approximately 1.6 million customers in Finland, Sweden and Norway. The Distribution business area's sales during the last 12 months at the end of the third quarter 2012 was EUR 1,000 million and comparable operating profit was EUR 265 million. The business area's share of Fortum's comparable operating profit was approximately 16%. Net assets at the end of the third quarter 2012 totaled EUR 3,847 million. The business area employs approximately 900 people.
Fortum's purpose is to create energy that improves life for present and future generations. In accordance with its strategy, the company’s aim is to build on its strong Nordic core, create solid earnings growth in Russia and build a platform for future growth.
Senior Vice President, Corporate Communications
Tapio Kuula, President and CEO,
tel. +358 10 45 24112 (available to the media 1.00pm-3.30pm EET)
Corporate Communications: Helena Aatinen, Senior Vice President, +358 10 45 20480,
Fortum Media Desk: +358 40 1982 843
Investor Relations: Sophie Jolly, Vice President, tel. +358 10 45 32552
NASDAQ OMX Helsinki
Further information to news desks:
Fortum is the leading electricity distribution company in the Nordic countries with approximately 1.6 million network customers; ~900 000 in Sweden, 600 000 in Finland and ~100 000 in Norway. Fortum’s distribution businesses in Estonia were sold in the beginning of 2012. At Fortum, the Distribution business area is part of the company’s Electricity Solutions and Distribution Division that is also responsible for retail sales of electricity.
Fortum is the second largest electricity retail company in the Nordic countries with approximately 1.2 million customers in Finland, Sweden and Norway. Electricity sales is a competed business and there are altogether 350 electricity retailers in the Nordic countries. Fortum’s retail business is not included in the strategic review announced today.
Fortum’s largest division, Power, consists of Fortum’s power generation, power trading and power capacity development as well as expert services for power producers. Fortum’s Heat Division consists of combined heat and power (CHP) generation, district heating activities and business-to-business heating solutions in the Nordic countries and other parts of the Baltic Rim. The Russia Division consists of power and heat generation and sales in Russia.