Stock exchange release

Fortum’s Interim Report January-March 2018: Favourable market conditions – strong result improvement in the Generation segment

26 April 2018, 9:00 EEST



This release is a summary of Fortum’s Interim Report January-March 2018. The complete report is attached to this release as a pdf-file. It is also available on the company's website at

Fortum January-March 2018 Interim Report

January-March 2018

  • Comparable EBITDA was EUR 538 (423) million, +27%
  • Comparable operating profit was EUR 405 (313) million, +29% Cash flow from operating activities totalled EUR 273 (282) million
  • Earnings per share were EUR 0.43 (0.38), of which EUR 0.07 (0.07) related to items affecting comparability
  • Shareholders representing 47.12% of the shares in Uniper accepted Fortum's offer
  • Fortum held its Annual General Meeting on 28 March, dividend of EUR 1.10 per share approved

Summary of outlook

  • Generation segment's Nordic generation hedges: approximately 65% hedged at EUR 27 per MWh for the remainder of 2018 and approximately 45% at EUR 26 per MWh for 2019
  • Capital expenditure, including maintenance but excluding acquisitions, expected to be in the range of EUR 600-700 million in 2018

Key financial ratios

  2017 LTM
Return on capital employed, % 7.1 7.7
Comparable net debt/EBITDA 0.8 0.6

Key figures 

EUR million or as   indicated I/18 I/17 2017 LTM
Sales 1,585 1,232 4,520 4,873
Comparable EBITDA 538 423 1,275 1,390
Comparable operating profit 405 313 811 903
Operating profit 482 389 1,158 1,251
Share of profits of associates   and  joint ventures 47 59 148 136
Profit before income taxes 493 412 1,111 1,192
Earnings per share, EUR 0.43 0.38 0.98 1.03
Net cash from operating activities 273 282 993 984
Shareholders’ equity per share,   EUR 13.64 15.82 14.69  
Interest-bearing net debt (at the  end of the period) 899 -347 988  

Fortum's President and CEO Pekka Lundmark:

"Following the good performance in 2017, the positive trend continued in the first quarter of 2018. The cold weather in February and March and the clearly lower than normal precipitation increased spot prices in the Nordic market. Further, the revision of the EU Emission Trading Scheme and the strengthening of the Market Stability Reserve had a positive impact on the price of CO2 emission allowances, which increased from EUR 8 per tonne to EUR 13 per tonne during the first quarter of 2018. This is a welcome development considering the needed decarbonisation. However, it is not yet sufficient for a large-scale market-based switch from coal to lower-emitting power generation.

Fortum's first quarter results improved significantly with comparable operating profit increasing by 29% to EUR 405 million. The higher achieved power price in combination with high hydro volumes strengthened the results of the Generation segment. The integration of the Hafslund business contributed positively to the results of the City Solutions and Consumer Solutions segments. I am also pleased that Teollisuuden Voima has reached a settlement with the supplier consortium of the Olkiluoto 3 nuclear reactor, which ended a dispute that has dragged on for several years. The agreement enables the successful finalisation of the project.

Fortum's offer period for Uniper shares ended in February 2018. A total of 47.12% of the shares were tendered, which will make Fortum the clearly largest shareholder of Uniper. The regulatory approval processes for the transaction are still ongoing in Russia and the EU, and we expect to receive these approvals by mid-2018. The transaction would close shortly thereafter.

The implementation of Fortum's strategy has proceeded well. Since the divestment of our electricity distribution networks in 2014 and 2015, we have been able to refocus our operations and redeploy our capital with solid and increasing returns through several strategically important acquisitions and organic investments, the most significant of which is our investment in Uniper. Once completed, the Uniper investment will increase our net debt to EBITDA ratio to a level above our long-term target. Our aim is to reduce the leverage and at the same time enable efficient use of our balance sheet and maintain the required financial flexibility. Our focus areas will thus be: prioritisation of our capital expenditure, optimisation of cash flow from our operations and overall efficiency improvements. The capital expenditure for the coming years will be scrutinised with strategic prioritisation both for maintenance and growth initiatives. To further improve our cash flow, we will evaluate the need to streamline our operations and assess the future of non-core assets. Continued cost consciousness is a key priority for us and further emphasis will be put on efficiency improvements and fixed cost scrutiny.

Through its ongoing transformation, Fortum is today well positioned in the energy sector. We possess the expertise required and aim to take an active role in successfully and affordably driving Europe’s transition towards a low-carbon energy system."

Espoo, 25 April 2018

Fortum Corporation
Board of Directors

News conference/webcast

The joint news conference for media, investors and analysts will be held on 26 April at 11.00 EEST at Fortum Head office in Keilalahdentie 2-4, Espoo.

The conference is available as a live webcast on Fortum's web site at To participate in the teleconference, please dial in approximately 5 minutes before the beginning of the event using the numbers below:

FI +358 9 7479 0360
UK +44(0)330 336 9104
US +1 646 828 8199

Passcode: 713692

The webcast will be recorded and published on Fortum's website at together with the transcript after the event.

Further information:

Pekka Lundmark, President and CEO, tel. +358 10 452 4112
Markus Rauramo, CFO, tel. +358 10 452 1909

Investor Relations and Financial Communications:
Ingela Ulfves, tel. +358 40 515 1531
Måns Holmberg, tel. +358 44 518 1518
Rauno Tiihonen, tel. +358 10 453 6150
Pirjo Lifländer, tel. +358 40 643 3317, and investors [at] fortum [dot] com (investors[at]fortum[dot]com)

Media: Corporate Press Officer, Mari Kalmari, tel. +358 40 520 1709

Financial calendar in 2018

In 2018, Fortum will publish:

  • Half-year Financial Report January-June on 19 July 2018, at approximately 9:00 EEST
  • Interim Report January-September on 24 October 2018, at approximately 9:00 EEST

Fortum’s Capital Markets Day will be held on 13 November 2018 at Fortums new headquarters in Espoo, Finland.


Nasdaq Helsinki
Key media

More information, including detailed quarterly information, is available on Fortum’s website at