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Fortum (FORTUM) investor relations material
Fortum Investor Presentation summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Strategic positioning and market environment
Focus on clean energy with 90% of earnings from generation, mainly nuclear (52%) and hydro (44%), and specific emissions of 11 gCO2/kWh in 2024.
Strategic priorities include delivering reliable clean energy, driving industrial decarbonisation, and transforming operations.
Nordic power market offers competitive, clean energy with demand growth driven by electrification and decarbonisation, especially from data centers and industrial customers.
Large portfolio of industrial sites with strong grid connections and CO2-free power available for new business entrants.
Market prices are currently too low to incentivize new investments, with forward prices for 2028-33 at ~€45/MWh.
Financial performance and capital allocation
Achieved power price in Q2 2025 was €48.1/MWh, but realised blended market price was lower at €26.4/MWh; high hedge ratio and optimisation premium supported results.
Comparable operating profit declined due to lower hydro and nuclear volumes; financial net debt-to-EBITDA at 0.9x, indicating strong balance sheet.
Dividend of €1.3 billion paid, with a payout ratio policy of 60-90% of comparable EPS, applying the upper end when balance sheet is strong and investments are low.
Capital expenditure guidance for 2025-2027 is €1.4 billion, with annual maintenance of €250 million and growth investments of €150-300 million.
Efficiency improvement programme targets €100 million fixed cost reduction by end of 2025.
Operational highlights and business segments
Generation segment's profit decreased mainly due to lower volumes and prices, partially offset by high hedge ratio and optimisation.
Consumer Solutions achieved record profits, driven by improved gas margins in Poland and cost synergies from brand mergers.
Other Operations improved due to divestments in Circular Solutions.
Power generation in 2024 was 46.3 TWh, with 52% nuclear and 44% hydro; heat production was 4.1 TWh, with significant shares from waste, coal, and bio.
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