FORTUM CORPORATION STOCK EXCHANGE RELEASE 20 January 2016 at 12:35 EET
Fortum will have a one-time negative impact of approximately EUR 110 million on its fourth quarter 2015 net profit arising from impairments and provisions. The impact before taxes will mainly be included in the items affecting comparability of the Power and Technology segment.
The one-time items mainly relate to Fortum’s two coal-fired power plants in Finland, Inkoo and Meri-Pori. The demand for coal condensing power in the Nordic power market has decreased as a result of the drop in the wholesale price for electricity. Fortum is booking a provision for the dismantling of the Inkoo power plant and starting preparations for permanent dismantling. The Inkoo operations were ceased in February 2014 and assets written down in 2013. In addition Fortum is making an impairment loss for Fortum’s share of Meri-Pori assets.
The negative impact to net profit also includes an additional write-down based on information received during the fourth quarter regarding the closure of the units 1 and 2 in Oskarshamn nuclear power plant in Sweden.
In addition, Fortum’s fourth quarter 2015 will include approximately EUR 75 million negative effect to net profit related to derivatives mainly hedging Fortum’s future power production, which do not get hedge accounting status according to IFRS (IAS 39).
Senior Vice President, Corporate Communications
Media: Helena Aatinen, SVP, Corporate Communications, Fortum,
tel. +358 10 45 20480
Analysts and investors: Sophie Jolly, VP, Investor Relations, Fortum,
tel. +358 10 45 32552
Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com