Stock exchange release

Fortum’s 2021 Half-year Financial Report: Strengthening the balance sheet and accelerating decarbonisation

17 August 2021, 09:00 EEST



This release is a summary of Fortum’s 2021 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 2021

  • Comparable EBITDA was EUR 348 (512) million
  • Comparable operating profit was EUR 35 (203) million
  • Operating profit was EUR -840 (539) million, mainly impacted by changes in fair values of non-hedge-accounted derivatives
  • Comparable share of profits of associates and joint ventures was EUR 52 (23) million
  • Comparable earnings per share were EUR 0.09 (0.17)
  • Earnings per share were EUR -0.53 (0.38)
  • Cash flow from operating activities totalled EUR 289 (440) million
  • S&P and Fitch upgraded rating outlook to “stable”, BBB rating reaffirmed

January-June 2021

  • Comparable EBITDA was EUR 1,827 (1,055) million
  • Comparable operating profit was EUR 1,206 (596) million
  • Operating profit was EUR 505 (1,142) million, mainly impacted by changes in fair values of non-hedge-accounted derivatives
  • Comparable share of profits of associates and joint ventures was EUR 119 (574) million. The comparison period includes Uniper for the fourth quarter of 2019 and first quarter of 2020
  • Comparable earnings per share were EUR 1.03 (1.09)
  • Earnings per share were EUR 0.70 (1.43)
  • Cash flow from operating activities totalled EUR 1,120 (1,002) million
  • Financial net debt-to-comparable EBITDA ratio for the last 12 months at 2.4 times, above target level of <2 times
  • On 12 March, Fortum signed an agreement to sell its district heating business in the Baltics. The transaction concluded on 2 July. Total consideration of approximately EUR 710 million
  • On 30 June, Fortum signed an agreement to sell its 50% ownership in Stockholm Exergi for a total consideration of EUR 2.9 billion. Closing expected before the end of 2021

Summary of outlook

  • The Generation segment’s Nordic generation hedges: approximately 75% at EUR 33 per MWh for the remainder of 2021 and approximately 60% at EUR 31 per MWh for 2022
  • The Uniper segment’s Nordic generation hedges: approximately 90% at EUR 26 per MWh for the remainder of 2021, approximately 85% at EUR 24 per MWh for 2022, and approximately 45% at EUR 22 per MWh for 2023
  • Capital expenditure, including maintenance but excluding acquisitions, is expected to be approximately EUR 1,400 million in 2021

Key figures*

EUR million II/2021 II/2020 I-II/2021 I-II/2020 2020 LTM
Sales 17,128 12,330 38,621 13,687 49,015 73,950
Operating profit -840 539 505 1,142 1,599 962
Share of profit/loss of associates and joint ventures 61 39 140 518 656 279
Net profit -659 403 651 1,341 1,855 1,165
Net profit (after non-controlling interests) -473 340 618 1,270 1,823 1,171
Earnings per share, EUR -0.53 0.38 0.70 1.43 2.05 1.32
Net cash from operating activities 289 440 1,120 1,002 2,555 2,673
EUR million II/2021 II/2020 I-II/2021 I-II/2020 2020 LTM
EBITDA 348 512 1,827 1,055 2,434 3,206
Operating profit 35 203 1,206 596 1,344 1,954
Share of profit/loss of associates and joint ventures 52 23 119 574 656 201
Net profit (after non-controlling interests) 79 155 915 968 1,483 1,431
Earnings per share, EUR 0.09 0.17 1.03 1.09 1.67 1.61
EUR million       30 June 2021 31 Dec 2020 LTM
Financial net debt (at period-end)       7,668 7,023  
Adjusted net debt (at period-end)       10,016 9,784  
Financial net debt/comparable EBITDA         2.9 2.4

* Uniper has been consolidated as a subsidiary from 31 March 2020. Previously, Uniper's contribution to the income statement was recognised in the Share of profit/loss of associates and joint ventures.

Fortum’s President and CEO Markus Rauramo:

"The determined execution of our transformation strategy continued during the spring and summer with active portfolio rotation and decarbonisation. First, we agreed to sell 500 MW of solar power capacity in India, in line with our build-operate-transfer business model, and signed a comprehensive agreement with Actis targeting potential further investments in solar power plants in India. Second, we closed the divestment of our Baltic district heating business for a total consideration of approximately EUR 710 million. And third, we signed an agreement on the sale of our 50% stake in Stockholm Exergi for EUR 2.9 billion. These three successful transactions bring the value of our portfolio rotation over the last eighteen months to a total of EUR 5.2 billion. The efficient implementation of our chosen strategy has strengthened Fortum’s balance sheet. Subsequent to the closing of the Baltic district heating and Exergi divestments our leverage, measured as financial net debt-to-comparable EBITDA, will further decrease to well below our target of less than 2 times. Our efforts have not gone unnoted as both the Standard & Poor’s and Fitch rating agencies, have now removed the negative outlook for Fortum and we are very pleased that they revised their long-term ratings to BBB with a stable outlook.

The execution of our decarbonisation strategy is also proceeding well. In July, we agreed to sell our Argayash coal-fired combined heat and power plant in Russia. As we announced earlier this year, the fuel switch of the Chelyabinsk CHP-2 unit from coal to gas means that we now have a clear path to cease the use of coal in our Russia segment by the end of 2022. This leaves the Group’s Russian operations with only one coal-fired power plant without a clearly communicated exit path, the Berezovskaya power plant of the Uniper segment. In our Uniper business in Germany, we were successful also in the third round of auctions for the closure of coal-fired power plants. The bid for closure of the Scholven C power plant was accepted, which makes it the third success in the three auctions held so far and Uniper’s third coal-fired power plant to be closed ahead of our previously announced, already ambitious schedule. I am also pleased that we have been able to accelerate our decarbonisation in the UK, as we plan to close the first block of the Ratcliffe coal-fired power plant as early as September 2022 and the remaining three units by the end of 2024, all ahead of schedule. This means we have been able to announce the accelerated closure of almost 40% of our coal-fired generation capacity within less than one year.

Due to seasonality, the second and third quarters are normally weaker than the winter quarters and this year was no exception. In addition, the comparable operating profit for the second quarter declined because Uniper’s Global Commodities business did not replicate the strong profits from the second quarter of 2020 and Uniper also experienced an intra-year phasing effect, due to the increase in the price for CO2 emission rights that shifted margins from the second quarter to the second half of 2021. The results of Fortum’s Generation segment benefitted from higher power prices and strong performance in physical optimisation, although the effect was dampened by the fairly high hedge levels. All other segments showed improving or stable results. The results of the first half of 2021 was strong thanks to the good results of Uniper and improvements in the Generation and City Solutions segments. With a comparable earnings per share of EUR 1.61 for the last twelve months and a strengthening balance sheet, Fortum is well equipped for the ongoing energy transition.

Fortum’s decarbonisation efforts are supported by the EU Commission’s ‘Fit for 55’ legislative package that guides the EU economy towards a 55% reduction in greenhouse gas emissions by 2030 and climate neutrality by 2050. The package is well in line with Fortum’s views and includes, among other measures, a tightening of the EU ETS and its expansion to maritime transport as well as ambitious targets for renewable hydrogen use. Carbon pricing will also be broadened to buildings and road transport, something we have long been advocating for. These measures are more challenging to implement than measures targeting large industrial installations, but they are necessary in order to reach the high climate ambitions of the EU, something that cannot be achieved by focusing only on the energy sector.

On 9 August, the IPCC – Intergovernmental Panel on Climate Change published a new report that reinforces the scientific basis of climate change and the human impact on it. It emphasises the urgency of climate action and the necessity for all mitigation and adaptation measures. In Fortum’s view, the findings of the report underline the importance of making full use of all CO2-free technologies in climate change mitigation."

Espoo, 16 August 2021

Fortum Corporation
Board of Directors


A combined live webcast/teleconference for media, investors, and analysts will be arranged on 17 August 2021 at 11:00 EEST. For the webcast, use the link on

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

FI: +358 9 817 10310
UK: +44 333 300 0804
US: +1 631 913 1422

PIN: 44255534#

A recording of the webcast as well as the transcript will be published on 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, Carlo Beck, tel. +49 172 751 2480, Pirjo Lifländer, tel. +358 40 643 3317, and investors [at] fortum [dot] com

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

Financial calendar in 2021

Fortum will publish its January-September Interim Report on 12 November 2021 at approximately 9.00 EET

Uniper will publish its Financial Results January-September 2021 on 5 November 2021


Nasdaq Helsinki
Key media

More information, including detailed quarterly information, is available at