Finnish utility Fortum says mild winter, lower power prices dent Q4 earnings (updated)

Fortum Oyj

11/02/2025 08:17

(Recasts, adds context, details)
       HELSINKI, Feb 11 (Reuters) - Finnish utility Fortum
 FORTUM.HE  on Tuesday reported fourth-quarter comparable
operating profit that missed analysts' expectations, citing
lower hydro and nuclear volumes and weaker prices.
    Abundant availability of wind and hydro power as well as
seasonally warm winter weather in the region pushed Nordic spot
prices down last year, but Fortum said the impact was partly
offset by an ongoing recovery in Nordic power demand.    
    The state-controlled utility's comparable operating profit
for the quarter fell to 257 million euros ($264.8 million),
missing analysts' expectations of 280 million euros in a
company-provided poll.    
    "In the fourth quarter, the Generation segment's comparable
operating profit declined due to lower hydro and nuclear volumes
and lower spot and hedge prices," Fortum CEO Markus Rauramo said
in a statement.
    Operating profit for the period rose to 390 million euros
from 376 million euros a year earlier, including a one-off
capital gain of 176 million from the divestment of Fortum's
recycling and waste business.
    "We are starting a feasibility study to explore
possibilities for flexible pumped-storage hydro power in Sweden
to provide much-needed flexible balancing power," Rauramo said.
    Rauramo said Fortum had achieved 60 million euros in cost
reductions in 2024, exceeding its earlier target of 50 million,
and was on track with a goal to lower its recurring fixed costs
by 100 million euros by the end of 2025.
    Fortum's board of directors proposed a dividend of 1.40
euros per share for 2024.
    Shares in the company fell 1.1% after market opening in
Helsinki.         
    ($1 = 0.9709 euros)

 (Reporting by Anne Kauranen in Helsinki; Editing by Jan Harvey)
 ((anne.kauranen@thomsonreuters.com; +358401895560;))