Fortum Corporation Interim report January-March April 2010

Transcription

1 Fortum Corporation Interim report January-March April 21

2 Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Fortum shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser. 2

3 Business environment improving Nordic power consumption up by 7% Tight supply demand balance in the Nordic area resulted in price peaks Cold winter; exceptional low temperature periods Availability of Nuclear in Sweden still affected by modernisations Average Nord Pool system spot price up by 56% from a year ago Russian power consumption increased by about 6% Electricity spot price in Russia up by 53% from a year ago 3

4 A strong start for the year Comparable operating profit, EUR 651 (62) million, Higher achieved Nordic sales price in Power Improvement in Russia SEK translation effect EUR +33 million Earnings per share EUR.63 (.46) Sales gains from Swedegas, Karlskoga Energi & Miljö, Kurgan and Federal grid company shares Net cash from operating activities EUR 521 (822) million Decline due to financial items and SEK appreciation 4

5 Better performance, except Electricity Sales Comparable operating profit EUR million Power Q1/29 Heat Distribution Electricity Sales Russia Other Q1/21 5

6 Key events and highlights Performance development in Russia on track Russian power reform proceeded as planned OAO Fortum s productivity improved Rules and price parameters for capacity market approved Suomenoja CHP plant in full operation Work continuing to improve efficiency, accountability and simplicity Restructuring of the Business Market segment in Electricity Sales 82% (9%) of the generated power CO 2 -free in the EU Higher thermal condensing generation due to cold weather The Government did not approve Fortum's application for Loviisa 3 6

7 Nordic water reservoirs below normal 12 1 reservoir content (TWh) reference level Q1 Q2 Q3 Q4 Source: Nord Pool 7

8 Commodity prices USD / bbl Crude oil price (ICE Brent) Q1 average: 77 (46) EUR / tco CO 2 price (NP EUA) Q1 average: 13 (12) USD / t Coal price (ICE Rotterdam) Q1 average: 79 (71) GBp / therm Gas price (ICE NBP) Q1 average: 33 (46) Source: ICE, Nord Pool

9 Price development in the Nordic region and Russia Spot price for power in Nord Pool power exchange, eur/mwh % Spot price for power (market price), Urals hub, RUB/MWh % Q1/29 Q2/29 Q3/29 Q4/29 Q1/ Q1/29 Q2/29 Q3/29 Q4/29 Q1/ Power's Nordic power price, eur/mwh +1% Average regulated electricity price for OAO Fortum, RUB/MWhWh +15% Q1/29 Q2/29 Q3/29 Q4/29 Q1/21 Q1/29 Q2/29 Q3/29 Q4/29 Q1/21 9

10 Financials

11 Power Power Higher achieved price supported by higher spot prices Lower hydro and nuclear volumes Increased thermal generation Stronger SEK MEUR I/21 I/29 LTM Sales Comparable operating profit Net Assets Comparable RONA, % 26.3 Gross Investments

12 Heat Heat Suomenoja CHP plant in operation Higher heat volumes due to cold weather Higher power volumes and higher Nord Pool spot price MEUR I/21 I/29 LTM Sales Comparable operating profit Net Assets Comparable RONA, % 8. Gross Investments

13 Distribution Distribution Higher volumes Stronger SEK Automatic meter rollout in Finland to start in 21 MEUR I/21 I/29 LTM Sales Comparable operating profit Net Assets Comparable RONA, % 9.1 Gross Investments

14 Electricity Sales Markets Higher purchase price of power; Nord Pool price peaks Restructuring provision for the Business Market segment MEUR I/21 I/29 LTM Sales Comparable operating profit Net Assets Comparable RONA, % 7.3 Gross Investments 1 14

15 Russia Russia Efficiency improvement programme on track Slightly higher electricity and heat sales margins The price parameters for the capacity market approved in April 21 MEUR I/21 I/29 LTM Sales Comparable operating profit Net Assets Comparable RONA, %.5 Gross Investments

16 Income statement MEUR I/21 I/29 29 LTM Sales Expenses Operating profit Share of profit of associates and jv's Financial expenses, net Profit before taxes Income tax expense Net profit for the period Non-controlling interests EPS, basic (EUR) EPS, diluted (EUR)

17 Comparable and reported operating profit Operating profit I/21 Operating profit I/29 Operating profit 29 Comparable Reported Comparable Reported Comparable Reported Power Heat Distribution Electricity Sales Russia Other Total

18 Cash flow statement MEUR I/21 I/29 29 LTM Operating profit before depreciations Non-cash flow items and divesting activities Financial items and fx gains/losses Taxes Funds from operations (FFO) Change in working capital Total net cash from operating activities Paid capital expenditures Acquisition of shares Other investing activities Cash flow before financing activities

19 Key ratios Key ratios MEUR LTM in Q1 1 EBITDA Net cash flow from operations Interest-bearing net debt Equity Balance sheet total Net debt/ebitda Return on capital employed (%) Return on shareholders' equity (%)

20 Debt maturity profile MEUR , Bonds Financial institutions Other long-term debt CPs Other short-term debt ,18 per 31 March, 21 per 31 December, 29 Duration (years) Average interest rate (incl. swaps and forwards) 3. % 3.4 % Portion of floating / fixed debt 63 / 37 % 62 / 38 % 2

21 Outlook

22 Fuel and CO 2 allowance prices USD / bbl Crude oil price (ICE Brent) EUR / tco CO 2 price (NP EUA) USD / t Coal price (ICE Rotterdam) GBp / therm Gas price (ICE NBP) Source: ICE, Nord Pool Market prices 22 April 21; future quotations

23 Nord Pool year forwards /MWh Year 7 Year 8 Year 9 Year 1 Year 11 Year 12 Year 13 Year 14 Q1 Q2 Q3 Q4 Q1 26 Forwards in late April 21: rest of 21 ~ 46 EUR/MWh 211 ~ 44 EUR/MWh 212 ~ 43 EUR/MWh Q2 Q3 Q4 Q1 27 Q2 Q3 Q4 Q1 28 Year April 21 Q2 Q3 Q4 Q1 Q

24 Hedging of Power division's Nordic sales Status at the end of March 21 (Status at the end of Dec 29) Hedge ratio Hedge price rest of 21 ~ 75% ~ EUR 44 per MWh (~7%) (~ EUR 44 per MWh) 211 ~ 45% (~4%) ~ EUR 43 per MWh (~ EUR 42 per MWh) 24

25 Fortum New capacity in a strong to be position commissioned in 21 Heat Type Capacity electricity, MW Capacity heat, MW Available Częstochowa, Poland CHP bio, coal Q3/21 Pärnu, Estonia CHP bio, peat 2 45 end of 21 Power Hydro refurbishment Hydropower Russia Tyumen 1 CCGT, gas 23 Q3/21 Tobolsk CCGT, gas 2 Q3/21 Chelyabinsk 3 CCGT, gas 22 Q4/21 25

26 Fortum in a strong position A strong start for the year Flexible, cost-efficient and climate-benign generation portfolio Russian power reform proceeding and the results of OAO Fortum improving as planned Nordic power demand recovering back to 28 level by Strong financial position and liquidity 26

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