In This Article:
-
Achieved Power Price: EUR60.1 per megawatt hour.
-
Optimization Premium: Updated to EUR7 to EUR9 per megawatt hour for 2025.
-
Comparable Operating Profit: EUR462 million for Q1 2025.
-
Comparable EPS: EUR0.42 per share for Q1 2025.
-
Operating Cash Flow: EUR453 million for Q1 2025.
-
Financial Net Debt: Practically 0 at the end of Q1 2025.
-
Leverage Ratio: 0.0x financial net debt to comparable EBITDA.
-
Comparable Net Profit: EUR374 million for Q1 2025.
-
Fixed Costs: EUR200 million for Q1 2025.
-
Gross Debt: EUR4.6 billion excluding leases.
-
Liquidity Reserves: EUR8.4 billion.
-
Hedge Price: EUR40 for the rest of 2025, EUR41 for 2026.
-
Hedge Ratio: 75% for 2025, 50% for 2026.
-
Capital Expenditure: Expected to be EUR1.4 billion for 2025-2027.
-
Annual Maintenance CapEx: Approximately EUR250 million.
-
Growth CapEx: EUR150 million to EUR300 million per year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Fortum Oyj (FOJCF) achieved a strong power price of EUR60.1 per megawatt hour despite lower Nordic spot prices.
-
The company reported a robust optimization premium, which was higher than the previous year's level.
-
Fortum Oyj (FOJCF) maintained a very strong financial position with a leverage ratio of 0.0 times.
-
The acquisition of Orange Energia doubled the customer base of Fortum's Consumer Solutions business in Poland.
-
Fortum Oyj (FOJCF) continues to develop its renewables pipeline, including a feasibility study for flexible pump storage hydropower in Sweden.
Negative Points
-
Hydro generation was below the long-term historical average, and nuclear volumes were negatively affected by outages.
-
The company's comparable operating profit declined due to lower power prices and volumes.
-
Fortum Oyj (FOJCF) expects a decrease in nuclear volumes by approximately 1.4 terawatt hours for the remainder of the year.
-
The operating cash flow decreased to EUR453 million in the first quarter.
-
Uncertainty in the operating environment has increased due to geopolitical conflicts and US tariff plans.
Q & A Highlights
Q: What are Fortum's criteria for potential acquisitions, particularly regarding Uniper's assets? A: Markus Rauramo, CEO, explained that Fortum evaluates potential acquisitions based on their balance sheet capacity and return targets. They apply a weighted cost of EBITDA plus 150 to 400 basis points for both acquisitions and greenfield or brownfield investments. Fortum is interested in nuclear, hydro, and renewable assets, but any acquisition must fit within their financial framework and meet their criteria.