Good results despite seasonality, low spot prices and weak rouble


Espoo, Finland, 2014-07-18 08:00 CEST (GLOBE NEWSWIRE) -- FORTUM CORPORATION INTERIM REPORT JANUARY - JUNE 2014 18 July 2014 at 9:00 EEST

April−June 2014

  • Comparable operating profit EUR 255 (289) million, -12%
  • Operating profit EUR 295 (429) million, of which EUR 41 (140) million relates to items affecting comparability, i.e. mainly to the sale of the Norwegian electricity distribution and heat businesses
  • Earnings per share EUR 0.28 (0.35), -20%, of which EUR 0.05 (0.12) per share relates to items affecting comparability. The sale of the Norwegian electricity distribution and heat businesses correspond to approximately EUR 0.08 per share
  • Cash flow from operating activities totalled EUR 455 (282) million, +61%
  • The Finnish Government decided not to introduce a power plant tax (windfall tax)
  • The target for the Russia Segment in Russian roubles (RUB 18.2 billion) to be reached during 2015 is intact, but the euro result level will be volatile and with current exchanges rates lower than EUR 500 million

January−June 2014

  • Comparable operating profit EUR 732 (813) million
  • Operating profit EUR 2,629 (905) million, of which EUR 1,897 (93) million relates to items affecting comparability, i.e. mainly to the sale of the electricity distribution business in Finland
  • Earnings per share EUR 2.81 (0.80), +251%, of which EUR 2.14 (0.08) per share relates to items affecting comparability. The main effect relates to the sale of the Finnish electricity distribution business totalling EUR 2.08 per share.
  • Sale of the Finnish and Norwegian electricity distribution as well as the Norwegian heat business finalised
  • Cash flow from operating activities totalled EUR 1,022 (749) million, +36%

 

Key figures II/14 II/13* I-II/14 I-II/13 2013* LTM**
Sales, EUR million 1,016 1,205 2,489 2,858 5,309 4,940
Operating profit, EUR million 295 429 2,629 905 1,508 3,232
Comparable operating profit, EUR million 255 289  
732
 
813
1,403 1,322
Profit before taxes, EUR million 284 388 2,626 878 1,398 3,146
Earnings per share, EUR 0.28 0.35 2.81 0.80 1.36 3.36
Net cash from operating activities, EUR million 455 282  
1,022
 
749
1,548 1,821
Shareholders’ equity per share, EUR     12.86 10.89 11.28  
Interest-bearing net debt (at end of period), EUR million      
5,008
 
7,975
7,793  

 

Key financial ratios 2013* LTM**
Return on capital employed, % 9.0 18.4
Return on shareholders’ equity, % 12.0 28.2
Net debt/EBITDA 3.7 1.3
Comparable net debt/EBITDA 3.9 2.6
Comparable net debt/EBITDA without Värme financing 3.4 2.2

*) Comparative period figures for 2013 presented in the interim report are restated due to an accounting change for Fortum Värme and segment reporting changes; see page 6 as well as Notes 2 and 4.
**) LTM, Last 12 months

Summary of outlook

  • Fortum continues to expect the annual electricity demand growth in the Nordic countries to be on average 0.5% in the coming years
  • Capital expenditure guidance: EUR 0.9-1.1 billion in 2014, excluding potential acquisitions
  • Power and Technology Segment's Nordic generation hedges: for the rest of the calendar year 2014, approx. 55% hedged at EUR 45 per MWh; and for the 2015 calendar year, approx. 30% hedged at EUR 41 per MWh
  • The EUR 500 million run-rate level in operating profit (EBIT) target, to be reached during 2015, in the Russia Segment corresponded to RUB 18.2 billion at 2008 prevailing euro-rouble exchange rates. Fortum is keeping its rouble-denominated target intact. The euro-denominated result level will be volatile mainly due to the translation effect, and currently, the unfavourable exchange balance converts into a lower profit level in euros.

Fortum’s President and CEO Tapio Kuula

”Electricity spot prices continued to be under pressure. However, even though the wholesale market prices for electricity have decreased, various taxes, fees and subsidies are increasing end-consumers' energy costs. Reducing CO2 emissions should drive the EU’s 2030 climate and energy policy as it would also promote renewables and energy efficiency at the lowest cost to consumers and industry. Furthermore, a common EU-wide, competitive and strongly networked internal energy market, where also renewable energy is developed on market basis, would not just improve competitiveness and mitigate environmental impacts, but improve the EU’s internal energy availability and security of supply as well.

The Finnish Government decided in June that it will not, after all, introduce a power plant tax (windfall tax) on nuclear, hydro and wind power built before 2004. The Government's decision is very welcome and the final decision to revoke the tax is expected from the Parliament in fall 2014. Going forward, predictability of the operating and regulatory environment for the capital intensive energy sector continues to be vital.

During the second quarter of 2014, electricity demand was flattish both in the Nordic countries and in Fortum's operating areas in Russia.

Fortum's achieved power price decreased. Nuclear volumes were also lower mainly due to the difference in timing and length of maintenance breaks in Fortum’s partly owned plants. Higher hydro production volumes contributed positively and partly offset the negative effects mentioned above. In addition, both heat and distribution volumes were lower, which contributed negatively to the total results. In Russia, better electricity and heat spreads, improved bad debt collections and increased efficiency had a positive effect on the result. Cash flow from operating activities continued strong.

At the time of the acquisition of the Russian subsidiary OAO Fortum in 2008, the EUR 500 million run-rate level in operating profit (EBIT) target set to be reached during 2015 in the Russia Segment corresponded to RUB 18.2 billion at the then prevailing euro-rouble exchange rates. As earlier communicated, the segment’s profits are mainly impacted by changes in currency exchange rates as well as power demand, gas price and other regulatory development. Fortum is keeping its rouble-denominated target intact, but mainly due to the translation effect, the euro-denominated result level will be volatile. Currently, the unfavourable exchange balance converts into a lower profit level in euros. However, the company is making every effort to mitigate the negative impacts.

In line with the conclusions of the assessment of the electricity distribution business in 2013 and what was announced during the first quarter, the sale of the Norwegian electricity distribution business was finalised during the second quarter of 2014. The work on evaluating the possible future divestment of our Swedish electricity distribution business continues according to plan.

Going forward, our strategic focus is on low-carbon power generation, energy-efficient combined heat and power (CHP) production and sales as well as innovative customer offerings. We strive for efficiency throughout our businesses by optimising the current portfolio as well as by managing costs and working capital."

Efficiency programme 2013-2014

Fortum started an efficiency programme in 2012 in order to maintain and strengthen its strategic flexibility and competitiveness and to enable the company to reach its financial targets in the future.

The aim is to improve the company’s cash flow by more than approximately EUR 1 billion during 2013–2014 by reducing capital expenditures (capex) by EUR 250–350 million, divesting approximately EUR 500 million of non-core assets, reducing fixed costs and focusing on working capital efficiency.

At the end of 2014, the cost run-rate is targeted to be approximately EUR 150 million lower compared to 2012, including growth projects.

If headcount reductions are needed, Fortum seeks to limit redundancies whenever possible. The assessments will therefore be done at a unit level.

At the end of June, Fortum had divested non-core assets of approximately EUR 400 million since the start of the efficiency programme. At the end of 2013, the company had been able to decrease its cost run-rate by approximately half of the targeted EUR 150 million and working capital efficiency had been improved. The programme is proceeding according to plan and will be finalized by the end of 2014.

Assessment of the electricity distribution business

In March, Fortum completed the divestment of its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. In June 2014, Fortum finalised its sale of the Norwegian electricity distribution business. The sales gains were booked in Fortum's Distribution Segment in the first and second quarter of 2014 (Note 6) respectively.

Fortum is currently evaluating possibilities to divest its distribution business in Sweden. The outcome is dependent on the market development and development of national regulation.

The decision to divest Fortum's electricity distribution business in Finland and Norway is linked to last year's strategic assessment of the company's future alternatives for its electricity distribution business. Fortum originally announced the completion of the assessment and the sale of the Finnish business in December 2013. The sale of the Norwegian business was announced in April 2014.

Restatement related to IFRS changes and the new reporting structure

As of 1 January 2014, Fortum has applied the new IFRS 10 Consolidated Financial Statements and 11 Joint Arrangements standards. The major effect of this reassessment relates to Fortum Värme, operating in the capital area in Sweden, which is treated as a joint venture and thus consolidated with the equity method (Note 2). Comparative information for 2013 presented in this interim report has been restated accordingly.

The segment information for 2013 has been restated due to the change in the organisation from 1 March 2014.

As of 2014, presented figures have been rounded and consequently the sum of individual figures may deviate from the sum presented.

Financial results

April–June

In the second quarter of 2014, Group sales were EUR 1,016 (1,205) million. Comparable operating profit totalled EUR 255 (289) million and the reported operating profit totalled EUR 295 (429) million. Fortum's operating profit for the period was affected by non-recurring items. The sale of the Norwegian electricity distribution and heat businesses as well as an IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production and nuclear fund adjustments amounted to EUR 41 (140) million (Note 4).

Sales by segment

  

EUR million II/14 II/13 I-II/14 I-II/13 2013 LTM
Power and Technology 487 548 1,072 1,213 2,252 2,111
Heat, Electricity Sales and Solutions 269 308  
715
 
839
1,516 1,392
Russia 234 251 567 595 1,119 1,091
Distribution 148 227 449 566 1,064 947
Other 14 14 28 29 63 62
Netting of Nord Pool transactions -101 -95 -234 -266 -478 -446
Eliminations -35 -49 -108 -119 -228 -217
Total 1,016 1,205 2,489 2,858 5,309 4,940

 

Comparable operating profit by segment

 

EUR million II/14 II/13 I-II/14 I-II/13 2013 LTM
Power and Technology 183 210 434 513 859 780
Heat, Electricity Sales and Solutions 11 13  
59
 
70
109 98
Russia 28 20 102 61 156 197
Distribution 45 60 164 197 332 299
Other -13 -14 -27 -28 -54 -53
Total 255 289 732 813 1,403 1,322

  

Operating profit by segment

 

EUR million II/14 II/13 I-II/14 I-II/13 2013 LTM
Power and Technology 151 338 413 600 922 735
Heat, Electricity Sales and Solutions 67 24  
112
 
75
134 171
Russia 28 20 101 61 156 196
Distribution 63 61 2,030 197 349 2,182
Other -13 -14 -28 -28 -53 -53
Total 295 429 2,629 905 1,508 3,232

 

January−June

In January-June 2014, Group sales were EUR 2,489 (2,858) million. Comparable operating profit totalled EUR 732 (813) million and the reported operating profit totalled EUR 2,629 (905) million. Fortum's operating profit for the period was affected by non-recurring items. The sale of the Finnish electricity distribution business, the Norwegian electricity distribution and heat businesses as well as an IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production and nuclear fund adjustments amounting to EUR 1,897 (93) million (Note 4).

The share of profit from associates in January-June was EUR 109 (112) million, of which Fortum Värme represents EUR 48 (51) million. The share of profit from Hafslund and TGC-1 are based on the companies' published first quarter 2014 interim reports (Note 12).

The Group’s net financial expenses were EUR 113 (140) million. Net financial expenses include changes in the fair value of financial instruments of EUR 0 (-6) million.

Profit before taxes was EUR 2,626 (878) million.

Taxes for the period totalled EUR 124 (160) million. The tax rate according to the income statement was 4.7 % (18.2 %). In Finland, the corporate tax rate was decreased from 24.5% to 20.0% starting 1 January 2014. The tax rate, excluding the impact of the share of profit from associated companies and joint ventures as well as non-taxable capital gains, was 20.6% (21.0%).

The profit for the period was EUR 2,502 (718) million. Fortum's earnings per share was EUR 2.81 (0.80), of which EUR 2.14 (0.08) per share relates to items affecting comparability. The earnings per share impact from the sale of the Finnish electricity distribution business was EUR 2.08 per share (Note 6).

Financial position and cash flow

Cash flow

In January-June 2014, total net cash from operating activities increased by EUR 273 million to EUR 1,022 (749) million, mainly due to realised foreign exchange differences turning to positive effect being EUR 293 million, which were partly offset with a lower EBITDA. Realised foreign exchange gains and losses of EUR 155 (-138) million were related to the rollover of foreign exchange contract hedging loans to Fortum's Swedish and Russian subsidiaries. Capital expenditures decreased by EUR 81 million to EUR 330 (411) million. Proceeds from divestments of shares totalled EUR 2,817 (37) million mainly from the divestment of the Finnish distribution business as well as the Norwegian electricity distribution and heat businesses. Total net cash used in investing activities was positive EUR 2,706 (-248) million. Cash flow before financing activities, i.e. financing, increased by EUR 3,226 million to EUR 3,727 (501) million.

The proceeds were partially used to pay dividends totalling EUR 977 million in April as well as payments of interest-bearing debt amounting to EUR 1,856 million. Cash and cash equivalents at the end of the period were EUR 2,157 (1,265) million.

Assets and capital employed

Total assets decreased by EUR 1,318 million to EUR 22,030 (23,348 at year-end 2013) million which includes the decrease of non-current assets, EUR 787 million. Intangible assets, property, plant and equipment as well as on participation in associates and joint ventures were decreased by translation differences EUR 360 million and divestments, EUR 292 million.

Assets of distribution Finland, amounting to EUR 1,173 million were presented as Assets held for sale at the end of 2013. Cash and cash equivalents increased by EUR 907 million.

Capital employed was EUR 18,675 (19,183 at year-end 2013) million, a decrease of EUR 508 million.

Equity

Total equity was EUR 11,509 (10,124 at year-end 2013) million, of which equity attributable to owners of the parent company totalled EUR 11,424 (10,024) million and non-controlling interests EUR 85 (101) million.

The increase in equity attributable to owners of the parent company totalled EUR 1,400 million and was mainly from the net profit of EUR 2,498 million for the period offset by translation differences of EUR -117 million and paid dividends of EUR 977 million.

Financing

Net debt decreased during January-June 2014 by EUR 2,785million to EUR 5,008 (7,793 at year-end 2013) million.

At the end of June 2014, the Group’s liquid funds totalled EUR 2,157 (1,265 at year-end 2013) million. Liquid funds include cash and bank deposits held by OAO Fortum amounting to EUR 378 (113 at year-end 2013) million. In addition to the liquid funds, Fortum had access to approximately EUR 2.2 billion of undrawn committed credit facilities.

The Group's net financial expenses during January-June 2014 were EUR 113 (140) million. Net financial expenses include changes in the fair value of financial instruments of EUR 0 (-6) million.

Fortum Corporation's long-term credit rating with both S&P and Fitch has remainted unchanged and is A- (negative outlook).

Key figures

For the last twelve months, net debt to EBITDA was 1.3 (3.7 at year-end 2013) and comparable net debt to EBITDA 2.6 (3.9 at year-end 2013). Fortum is currently financing Fortum Värme, and these loans EUR 873 (1,135 at year-end 2013) million are presented as interest-bearing loan receivables in Fortum’s balance sheet. However, the aim is to refinance the loans during 2014-2015. If these loans are deducted from the net debt, the last-twelve-months comparable net debt to EBITDA is 2.2 (3.4 at the year-end 2013).

Gearing was 44% (77%) and the equity-to-assets ratio 52% (43%). Equity per share was EUR 12.86 (11.28). For the last twelve months, return on capital employed totalled 18.4% (9.0% at year-end 2013) and return on shareholders’ equity 28.2% (12.0% at year-end 2013). Both return on capital employed and return on equity were positively affected with the capital gain from the sale of the Finnish electricity distribution business as well as the sale of the Norwegian electricity distribution and heat businesses.

Outlook

Key drivers and risks

Fortum's financial results are exposed to a number of economic, strategic, political, financial and operational risks. One of the key factors influencing Fortum's business performance is the wholesale price of electricity in the Nordic region. The key drivers behind the wholesale price development in the Nordic region are the supply-demand balance, fuel and CO2 emissions allowance prices as well as the hydrological situation. The completion of Fortum’s investment programme in Russia is also one key driver to the company’s result growth, due to the increase in production volumes and CSA payments.

The continued global economic uncertainty and Europe's sovereign-debt crisis has kept the outlook for economic growth unpredictable. The overall economic uncertainty impacts commodity and CO2 emissions allowance prices, and this could maintain downward pressure on the Nordic wholesale price for electricity in the short term. In Fortum's Russian business, the key factors are economic growth, the rouble exchange rate, the regulation around the heat business and further development of electricity and capacity markets. Operational risks related to the investment projects in the current investment programme are still valid. In all regions, fuel prices and power plant availability also impact profitability. In addition, increased volatility in exchange rates due to financial turbulence could have both translation and transaction effects on Fortum's financials, especially through the Swedish krona (SEK) and the Russian rouble (RUB). In the Nordic countries, also the regulatory and fiscal environment for the energy sector has added risks for utility companies.

Nordic market

Despite macroeconomic uncertainty, electricity is expected to continue to gain a higher share of the total energy consumption. Fortum continues to expect the annual growth rate in electricity consumption to be on average 0.5%, while the growth rate for the nearest years will largely be determined by macroeconomic development in Europe and especially in the Nordic countries.

During January-June 2014, the price of oil and European Union emissions allowances (EUA) appreciated, whereas the coal price declined. Price of electricity for the upcoming twelve months ended practically unchanged in the Nordic area whereas in Germany it decreased.

In mid-July 2014, the future quotation for coal (ICE Rotterdam) for the rest of 2014 was around USD 74 per tonne, and the price for CO2 for 2014 was about EUR 6 per tonne. The electricity forward price in Nord Pool for the rest of 2014 was around EUR 33 per MWh. For 2015, the price was around EUR 32 per MWh, and, for 2016, around EUR 31 per MWh. In Germany, the electricity forward price for the rest of 2014 was around EUR 34 per MWh and for 2015 EUR 35 per MWh. Nordic water reservoirs were about 2 TWh below the long-term average and 1 TWh above the corresponding level of 2013.

Power and Technology

The Power and Technology's Nordic power price typically depends on factors such as hedge ratios, hedge prices, spot prices, availability and utilisation of Fortum's flexible production portfolio, and currency fluctuations. Excluding the potential effects from the changes in the power generation mix, a 1 EUR/MWh change in the Power and Technology Segment’s Nordic power sales (achieved) price will result in an approximately EUR 45 million change in Fortum's annual comparable operating profit. In addition, the comparable operating profit of the Power and Tehnology Segment will be affected by the possible thermal power generation volumes and its profits.

The ongoing, multi-year Swedish nuclear investment programmes are expected to enhance safety, improve availability and increase the capacity of the current nuclear fleet. The implementation of the investment programmes could, however, affect availability. Fortum’s power procurement costs from co-owned nuclear companies are affected by these investment programmes through increased depreciation and finance costs of associated companies.

As a result of the nuclear stress tests in the EU, the Swedish nuclear safety authority (SSM) has decided to propose new regulations for Swedish nuclear reactors. The process is on-going and the final proposal is expected by the end 2014. Fortum emphasis that maintaining a high level of nuclear safety is highest priority, but considers EU level harmonisation of nuclear safety requirements to be of utmost importance.

The process to review the Swedish nuclear waste fees is done in a three-year cycle, and therefore SSM has given a new proposal for the nuclear waste fees. A Government decision is expected by the end of 2014.

Russia

The generation capacity built after 2007 under the Russian Government's Capacity Supply Agreements (CSA – “new capacity”) receives guaranteed capacity payments for a period of 10 years. Prices for capacity under CSA are defined in order to ensure a sufficient return on investments. The issue of prolonged CSA payments from 10 to 15 years have been under discussion in the Russian Government; however, no official decisions have yet been made.

Capacity not under CSA competes in the competitive capacity selection (CCS – “old capacity”). The capacity selection for generation built prior to 2008 (CCS – “old capacity”) for 2014 was held in September 2013. All of Fortum’s capacity was allowed to participate in the selection for 2014 and the majority of Fortum’s power plants were also selected. The volume of Fortum’s installed capacity not selected in the auction totalled 132 MW, which represents 4.6% of Fortum’s total old capacity in Russia.

The Russia Segment's new capacity will be a key driver for earnings growth in Russia as it is expected to bring income from new volumes sold and to also receive considerably higher capacity payments than the old capacity. However, the received capacity payment will differ depending on the age, location, size and type of the plants as well as seasonality and availability. The return on the new capacity is guaranteed, as regulated in the CSA. CSA payments can vary somewhat annually because they are linked to Russian Government long-term bonds with 8 to 10 years maturity. In addition, the regulator will review the earnings from the electricity-only market three years and six years after the commissioning of a unit and may revise the CSA payments accordingly.

The value of the remaining part of the investment programme, calculated at the exchange rates prevailing at the end of June 2014, is estimated to be approximately EUR 0.4 billion, as of July 2014.

The Russian result is impacted by seasonal volatility caused by the heat business' characteristics, with the first and last quarter being clearly the strongest.

At the time of the acquisition of the Russian subsidiary OAO Fortum in 2008, the EUR 500 million run-rate level in operating profit (EBIT) target set to be reached during 2015 in the Russia Segment corresponded to approximately RUB 18 billion at the then prevailing euro-rouble exchange rates. As earlier communicated, the segment’s profits are mainly impacted by changes in currency exchange rates as well as power demand, gas price- and other regulatory development. Fortum is keeping its rouble-denominated target intact, but mainly due to the translation effect, the euro-denominated result level will be volatile. Currently, the unfavourable exchange balance converts into a lower profit level in euros. However, every effort to mitigate the negative impacts is continuously being made.

In 2013, the Ministry of Energy stated that heat reform should be developed before changing the current electricity and capacity market model. Therefore, at the end of the year, the Ministry of Energy proposed a new heat market model (for public discussion), which is supposed to ensure a transition to economically justified heat tariffs by 2020 and attract investments into the heat sector. The new regulation concept is at an early stage and expected to be further developed during 2014.

According to a forecast made by the Russian Ministry of Economic Development, Russian gas price indexation will not take place as of July 2014. However, year-on-year gas price growth is estimated to be 7.6% in 2014.

Distribution

Fortum is preparing for a possible sale of the Swedish electricity distribution business. The decision to complete the process is dependent on market development and development of national regulation, among other factors.

In Sweden, legal processes are under way concerning the appeal filed regarding the network income regulatory period 2012-2015. The Administrative Court in Sweden ruled in favour of the network companies in December 2013. The Energy Market Inspectorate decided to appeal the decision, and was given during leave to appeal to the Administrative Court of Appeals during the first quarter; therefore, the process continues. The court hearing is expected in Q4 2014 or Q1 2015. 

The work to define the Swedish network income regulation model for the next regulatory period 2016-2019 is ongoing, and a first proposal by the Energy Market Inspectorate was given in March. Decisions are expected to be made during 2014.

Capital expenditure and divestments

Fortum currently expects its capital expenditure in 2014 to be approximately EUR 0.9-1.1 billion, excluding potential acquisitions. The Finnish distribution business is included in the figure until the end of the first quarter 2014 and the Norwegian until the end of June 2014. The annual maintenance capital expenditure is estimated to be about EUR 400-500 million in 2014, below the level of depreciation. Capex for electricity distribution in Finland and Norway has been approximately EUR 150 million annually.

Fortum will gradually decrease its financing to Fortum Värme, the co-owned power and heat company operating in the capital area in Sweden, during 2014-2015. At the end of 2013, Fortum Värme's share of debt totalled approximately EUR 1 billion.

Taxation

The effective corporate tax rate for Fortum in 2014 is estimated to be 19–21%, excluding the impact of the share of profits of associated companies and joint ventures, non-taxable capital gains and non-recurring items. In Finland, the corporate tax rate was reduced from 24.5% to 20% as of 1 January 2014.

The Finnish Government decided in June that it will not, after all, introduce a power plant tax (windfall tax) on nuclear, hydro and wind power built before 2004. The final decision to revoke the tax will be made by the Parliament in autumn 2014.

Hedging

At the end of June 2014, approximately 55% of Power and Technology's estimated Nordic power sales volume was hedged at approximately EUR 45 per MWh for the rest of 2014. The corresponding figures for the calendar year 2015 were approximately 30% at approximately EUR 41 per MWh.

The hedge price for Power and Technology's Nordic generation excludes hedging of the condensing power margin. In addition, the hedge ratio excludes the financial hedges and physical volume of Fortum's coal-condensing generation as well as the segment’s imports from Russia.

The reported hedge ratios may vary significantly, depending on Fortum's actions on the electricity derivatives markets. Hedges are mainly financial contracts, most of them Nord Pool forwards.

Dividend payment

The Annual General Meeting 2014 decided to pay a dividend of EUR 1.10 per share for 2013. The record date for the dividend was 11 April 2014, and the dividend payment date was 22 April 2014.

Espoo, 17 July 2014
Fortum Corporation
Board of Directors

Further information:

Tapio Kuula, President and CEO, tel. +358 10 452 4112
Timo Karttinen, CFO, tel. +358 10 453 6555
Fortum’s Investor Relations, Sophie Jolly, tel.+358 10 453 2552, Rauno Tiihonen, tel. +358 10 453 6150 and investors@fortum.com

The condensed interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The interim financials have not been audited.

Publication of financial results in 2014:

  • Interim Report January-September on 23 October 2014 at approximately 9.00 EEST

Distribution:

NASDAQ OMX Helsinki
Key media
www.fortum.com

More information, including detailed quarterly information, is available on Fortum’s website at www.fortum.com/investors.


Attachments

Fortum_interim_report_Q2_2014.pdf