Stock exchange release

Fortum Half-year 2020 Financial Report: Exceptionally low Nordic spot prices largely offset by solid hedges

19 August 2020, 09:00 EEST

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This release is a summary of Fortum’s January-June 2020 Half-year Financial Report. The complete report is attached to this release as a pdf file. It is also available on the company's website at

April-June 2020

  • Comparable EBITDA was EUR 512 (372) million
  • Comparable operating profit was EUR 207 (232) million
  • Operating profit was EUR 534 (184) million, impacted by EUR 154 million of fair value change of non-hedge-accounted derivatives
  • Share of profits of associates and joint ventures was EUR 37 (461) million, the decline mainly related to Uniper now being a subsidiary
  • Earnings per share were EUR 0.35 (0.69), of which EUR 0.20 (‑0.05) related to items affecting comparability
  • Net cash from operating activities before change in net margin liabilities totalled EUR 459 (716) million
  • Cash flow from operating activities totalled EUR -53 (740) million
  • Adverse effects of Covid-19 only in the Group’s Russian operations
  • Total consideration from divestment of majority stake in Nordic wind and majority stake in Nordic charging operator EUR 262 million
  • Markus Rauramo appointed President and CEO of Fortum
  • Fortum consolidated Uniper’s results into its income statement, which is the main reason for the change in quarterly, half-year, and last-twelve-month figures compared to the previous year

January-June 2020

  • Comparable EBITDA was EUR 1,055 (918) million
  • Comparable operating profit was EUR 600 (640) million
  • Operating profit was EUR 1,126 (542) million, impacted by a EUR 431 million sales gain from the divestment of the Joensuu district heating operations and a one-time, non-cash income statement impact of EUR -222 million from Uniper becoming Fortum’s subsidiary
  • Share of profits of associates and joint ventures was EUR 516 (572) million, mainly related to Uniper reported as an associated company until 31 March 2020
  • Earnings per share were EUR 1.40 (1.07), of which EUR 0.42 (‑0.09) related to items affecting comparability
  • Net cash from operating activities before change in net margin liabilities totalled EUR 1,020 (1,175) million
  • Cash flow from operating activities totalled EUR 1,061 (1,491) million
  • Adverse effects of Covid-19 only in the Group’s Russian operations in the second quarter
  • Total consideration from disclosed divestments EUR 1.2 billion, including divestment of district heating operations in Joensuu and Järvenpää, majority stake in Nordic wind, and majority stake in Nordic charging operator
  • In March, Fortum became majority owner in Uniper, consolidated Uniper as a subsidiary

Events after the balance sheet date

  • Fortum agreed to sell its district heating business in Järvenpää, Finland, for approximately EUR 375 million
  • Fortum to assess strategic options, including possible divestment, of its 50% holding in Stockholm Exergi
  • Fortum increases its ownership in Uniper to 75.01%

Summary of outlook

  • The Generation segment’s Nordic generation hedges: approximately 85% at EUR 34 per MWh for the remainder of 2020 and approximately 65% at EUR 33 per MWh for 2021
  • The Uniper segment’s Nordic generation hedges: approximately 90% at EUR 29 per MWh for the remainder of 2020, approximately 80% at EUR 27 per MWh for 2021, and approximately 40% at EUR 24 per MWh for 2022
  • Capital expenditure, including maintenance but excluding acquisitions, is expected to be approximately EUR 700 million in 2020. This includes approximately EUR 200 million of solar and wind investments, which are subject to the capital recycling business model. This guidance does not include capital expenditure for the Uniper segment.
Key figures
EUR million II/2020 II/2019 I–II/2020 I–II/2019 2019 LTM
Sales 12,330 1,144 13,687 2,834 5,447 16,300
Comparable EBITDA 512 372 1,055 918 1,766 1,903
Comparable operating profit 207 232 600 640 1,191 1,151
Operating profit 534 184 1,126 542 1,110 1,694
Share of profit/loss of associates and joint ventures 37 461 516 572 744 688
Profit before income taxes 570 652 1,583 1,076 1,728 2,235
Earnings per share, EUR 0.35 0.69 1.40 1.07 1.67 2.00
Net cash from operating activities before change in net margin liabilities* 459 716 1,020 1,175 1,658 1,503
Net cash from operating activities -53 740 1,061 1,491 2,015 1,585
Shareholders’ equity per share, EUR     14.86 13.93 14.61  
Financial net debt (at period-end)**     7,772   4,833  
Adjusted net debt (at period-end)**     10,060   4,978  
Interest-bearing net debt (at period-end)**       5,422 5,260  

* New subtotal added in the second quarter of 2020. Margin receivables and liabilities are included in financial net debt.
** Following the consolidation of Uniper, Fortum has updated its definition of net debt and uses financial net debt and adjusted net debt.

Fortum’s President and CEO Markus Rauramo:

"Fortum has developed substantially over the past few years and is now at a pivotal turning point. I am excited to have taken on the responsibility to steer forward this great company as President and CEO from the beginning of July. Together with Uniper, we will accelerate the transformation towards the goal to become a leader in the European energy transition. My number one short-term priority will be to have a joint strategy for the consolidated Group by the end of the year. We will continue to reduce our coal-based production and pursue decarbonisation through growth in clean energy and, as part of our joint strategy, set new climate targets for the whole Group.

At Fortum, we continuously evaluate and optimise our business portfolio, as can be seen in the acquisitions and divestments we have made over the last few years. We will continue to do so with the aim to have a more focused business portfolio for the whole Group in the future. In the long term, we will also invest in profitable growth. These investments will be strategic, selective, and substantial.

In the shorter term, we will work to secure the financial strength of the Group, which in this current uncertain market situation due to Covid-19 is even more important. Having a strong balance sheet and a solid investment grade rating of at least BBB continues to be a priority for Fortum. We are focusing on optimising cash flow, maximising our profitability, prioritising our capital expenditure, and continuing the optimisation of our portfolio. This year we have already concluded or disclosed divestments for a total consideration of EUR 1.2 billion.

The strategic review of our selected district heating assets is proceeding well. In early July, we signed an agreement to divest our district heating business in the Järvenpää-Tuusula area in Finland for EUR 375 million and expect to record a capital gain of approximately EUR 290 million in our third-quarter results. At the end of July, we announced that we also initiated a strategic review of our 50% stake in Stockholm Exergi, in addition to the ongoing review of the Polish and Baltic district heating operations.

During the second quarter, the very wet hydrology continued, especially in Norway, and caused an exceptional 84% drop in the Nordic spot power price. The area prices for Finland and Sweden also declined, but to a lesser extent. At the same time, the CO2-price increased clearly during the second quarter. While all of this widens the spread between the German and Nordic power prices, it also increases the potential for a rebound in Nordic prices once the hydrological situation eventually normalises.

The low power prices negatively affected the results of the Generation segment, but our high hedge levels cushioned the impact. The market uncertainty due to the Covid-19 pandemic continued, but had only a marginal effect on the Nordic power consumption. In Russia, power consumption declined notably as a result of Covid-19 and lower demand from the oil and gas industries, pushing down the electricity market price. Coupled with the weaker Russian rouble, the contribution from the Russia segment clearly decreased from last year. The results of the Consumer Solutions and City Solutions segments were stable.Following the majority transactions on Uniper in the first quarter, we already consolidated Uniper’s balance sheet from 31 March this year, and this quarter we consolidated Uniper as a subsidiary also in our income statement. Consequently, Uniper, for the first time, contributed to our comparable operating profit in the second quarter. Uniper successfully utilised the gas market conditions in the first quarter, which caused a profit shift between the quarters. The overall effect was positive and showed as a positive result in Fortum’s first-quarter share of Uniper’s profits, but also lowered the comparable operating profit for the Uniper segment in the second quarter. Similarly to our Generation and Russia segments, also the Uniper segment was affected by lower Nordic power prices and Covid-induced lower Russian power demand. Uniper’s hedging and optimisation activities, however, to a large extent mitigated the effects in the Nordics and central Europe. Since becoming the majority owner of Uniper we have slightly increased our ownership and earlier this week we reached the 75% ownership threshold.

Finally, I look forward to working together with all our employees, both at Fortum and Uniper, to utilise the combined knowledge and competencies to build a leader in the European energy transition."

Espoo, 18 August 2020

Fortum Corporation
Board of Directors

Live webcast/teleconference

A combined live webcast and teleconference for media, investors, and analysts will be arranged online on 19 August at 11.00 EEST. For the webcast, use the link on

To participate in the teleconference and Q&A, please dial in using the numbers below:

FI: +358 981 710 310
UK: +44 333 300 0804
US: +1 631 913 1422

PIN: 34391363#

A recording of the webcast as well as the transcript will be published at after the event.

Further information:

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

Media: Pauliina Vuosio, tel. +358 50 453 2383

The condensed Half-year Financial Report has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The half-year financials have not been audited.

Financial calendars in 2020

Fortum will publish its January-September Interim Report on 17 November 2020 at approximately 9:00 EET.

Fortum’s Capital Markets Day 2020 is planned for 3 December 2020.

Uniper publishes its financial calendar on the website Uniper will publish its Financial Results January-September 2020 on 10 November 2020.

Financial calendar in 2021

Uniper will publish its 2020 Annual Report on 4 March 2021.Uniper will publish its interim reports in 2021:

  • Financial Results January-March 2021 on 6 May 2021
  • Financial Results January-June 2021 on 10 August 2021


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