This release is a summary of
April-
- Comparable EBITDA was
EUR 920 (348) million -
Comparable operating profit was
EUR 574 (35) million -
Operating profit was
EUR -9,141 (-840) million, mainly impacted by changes in fair values of non-hedge-accounted derivatives and provisions for long-term gas contracts negatively impacted by Russian gas curtailments in the Uniper segment -
Comparable earnings per share were
EUR 0.99 (0.09) -
Earnings per share were
EUR -6.40 (-0.53) -
Cash flow from operating activities totalled
EUR 275 (289) million -
On 19 May,
Fortum closed the sale of its 50% ownership inFortum Oslo Varme AS for approximatelyEUR 1 billion . The agreement was signed on22 March 2022 . -
On 22 July,
Fortum ,Fortum's subsidiary Uniper and the German Government agreed on a comprehensive stabilisation package to provide financial relief to Uniper.
January-
- Comparable EBITDA was
EUR 816 (1,827) million due to the negative Uniper result -
Comparable operating profit was
EUR 136 (1,206) million due to the negative Uniper result -
Operating profit was
EUR -11,557 (505) million, mainly impacted by changes in fair values of non-hedge-accounted derivatives and provisions for long-term gas contracts negatively impacted by Russian gas curtailments in the Uniper segment -
Comparable earnings per share were
EUR 0.88 (1.03) -
Earnings per share were
EUR -8.90 (0.70) -
Impairments of approximately
EUR 2.3 billion recorded pre-tax related to the Group's Russian operations includingNord Stream 2 -
Cash flow from operating activities totalled
EUR -1,254 (1,120) million due to negative change in working capital in the Uniper segment
Summary of outlook
- The Generation segment's Nordic generation hedges: approximately 80% at
EUR 38 per MWh for the remainder of 2022, and approximately 60% atEUR 37 per MWh for 2023 -
The Uniper segment's Nordic generation hedges: approximately 70% at
EUR 26 per MWh for the remainder of 2022, approximately 55% atEUR 30 per MWh for 2023 and approximately 25% atEUR 30 per MWh for 2024* -
CANCELLATION of capital expenditure guidance:
Fortum removes its guidance on capital expenditure for 2022 for the time being and will come back with an update in due course -
Uniper's anticipated losses from the gas curtailments will be recorded in
Fortum's comparable operating profit, mainly affecting the third-quarter result
*As of the first quarter of 2022, Uniper has changed the reporting on its hedges. See Uniper's quarterly statement Q1 2022 materials for further details.
EUR million | II/2022 | II/2021 | I-II/2022 | I-II/2021 | 2021 | LTM |
Reported | ||||||
Sales | 38,237 | 17,128 | 81,860 | 38,621 | 112,400 | 155,639 |
Operating profit | -9,141 | -840 | -11,557 | 505 | -588 | -12,650 |
Share of profit/loss of associates and joint ventures | -49 | 61 | -239 | 140 | 192 | -188 |
Net profit | -7,356 | -659 | -10,189 | 651 | -114 | -10,953 |
Net profit (after non-controlling interests) | -5,686 | -473 | -7,908 | 618 | 739 | -7,788 |
Earnings per share, EUR | -6.40 | -0.53 | -8.90 | 0.70 | 0.83 | -8.77 |
Net cash from operating activities | 275 | 289 | -1,254 | 1,120 | 4,970 | 2,596 |
EUR million | II/2022 | II/2021 | I-II/2022 | I-II/2021 | 2021 | LTM |
Comparable | ||||||
EBITDA | 920 | 348 | 816 | 1,827 | 3,817 | 2,807 |
Operating profit | 574 | 35 | 136 | 1,206 | 2,536 | 1,466 |
Share of profit/loss of associates and joint ventures | 25 | 52 | 51 | 119 | 154 | 86 |
Net profit (after non-controlling interests) | 885 | 79 | 786 | 915 | 1,778 | 1,649 |
Earnings per share, EUR | 0.99 | 0.09 | 0.88 | 1.03 | 2.00 | 1.85 |
EUR million | LTM | |||||
Financial net debt (at period-end) | 2,353 | 789 | ||||
Adjusted net debt (at period-end) | 4,188 | 3,227 | ||||
Financial net debt/comparable EBITDA | 0.2 | 0.8 |
"During the second quarter of 2022,
The supply shortfalls of Russian gas and surging gas prices caused dire financial difficulties for our subsidiary Uniper,
On 22 July, after in-depth and constructive negotiations, we were able to announce the stabilisation package agreed between
Let me emphasise that for us at
For the upcoming weeks and months, our focus is on agreeing with the German Government on how to finalise and execute the details of this stabilisation package, and to obtain all required regulatory approvals, including from the
The announcement of Uniper's stabilisation package was also positively noted by the rating agencies.
It's important to note that the current situation in the European commodity markets does not only reflect the developments of a single past quarter, but is the result of events that began already last summer. At that time,
Similar effects are reflected in the Nordic market as well. Geopolitical tensions and its impacts on the European energy market have significantly raised the spot and forward prices for power in the Nordics, leading to increased collateral requirements and liquidity needs for utility companies. One can even argue that exchange traded futures markets are currently dysfunctional - they are driven by price and an unfit regulatory framework for these extraordinary circumstances - making the situation challenging for power producers and consumers alike. As a utility company we are currently managing the situation, but if the prices continue to rise, there will be a point where we have to increase our liquidity reserves. Therefore, I urge our Nordic governments to ensure that the regulation does not create undue burdens for companies providing energy to the markets and that financing is available for market participants to cover high margining and collateral needs in the short term and in the longer term to push for changes in the EU EMIR-regulation which set the legal framework for margining requirements. This is important because well-functioning futures market is a source for stability and predictability that both energy producers and users need.
In the second quarter, our comparable operating profit was
On a
As we announced in May, we are still pursuing a controlled exit from the Russian market with a potential divestment of the operations as the preferred path. We are currently assessing the possible implications of the new decree in
In summary: As a European energy provider, we are faced with a completely new reality compared to only six months ago. The high uncertainty in our operating environment is expected to continue. From our pan-European vantage point, the energy crisis with supply constraints and high prices in
Espoo,
Board of Directors
Webcast/teleconference
A combined live webcast/teleconference for media, investors, and analysts will be arranged online on 25 August at
To ask questions please, join the teleconference by registering on the following link: https://palvelu.flik.fi/teleconference/?id=1008577.
After the registration you will be provided with phone numbers and a conference ID to access the conference. To ask a question, please press *5 on your telephone keypad to enter the queue.
A recording of the webcast as well as the transcript will be published on www.fortum.com/investors after the event.
Financial calendar in 2022
Fortum will publish its January-September Interim Report on10 November 2022 at approximately 9.00 EET-
Uniper will publish its January-September results on
3 November 2022
Further information:
Investor Relations and
Media: Fortum News Desk, tel. +358 40 198 2843
Distribution:
Nasdaq
Key media
www.fortum.com
More information, including detailed quarterly information, is available at www.fortum.com/investors
https://news.cision.com/fortum/r/fortum-half-year-financial-report-2022--second-quarter-dominated-by-russian-gas-curtailments---europ,c3620048
https://mb.cision.com/Main/15253/3620048/1618791.pdf
https://mb.cision.com/Public/15253/3620048/a67dc7e8113f54a7.pdf
https://news.cision.com/fortum/i/fortum-sign-6,c3082570
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