Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q2 2024 Earnings Presentation
18 slides from Fortum Oyj's earnings presentation, Aug 15, 2024
Slide 1: Half-year Financial Report January-June 2024
Half-year Financial Report January-June 2024 Fortum Corporation 15 August 2024
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Quarterly highlights Q2 2024
Quarterly highlights Q2 2024 • Resilient performance despite lower Drive decarbonisation Deliver reliable clean of industries prices energy Development of industrial – Successful hedging and physical Pjelax wind farm full capacity sites optimisation Coal exit proceeding • Pjelax wind farm at full ca
Slide 4: Solid financial performance despite seasonally lower power prices in the Nordics
Solid financial performance despite seasonally I-II/2024 lower power prices in the Nordics Operating profit declined due to lower achieved power Key financial indicators for continuing operations price in the Generation segment Comp. OP Comp. EPS OCF Leverage 1,132 Cash flow 0.70 0.68 876 2-2.5x 960
Slide 5: Weather was driving Nordic power prices in the second quarter
Weather was driving Nordic power prices in the second quarter • In Q2, gas prices incorporated supply risk premium as European supply tightened on sizeable maintenance and higher Asian LNG demand. This supported carbon and power prices in Continental Europe. • Spot volatility, especially in Finland,
Slide 6: Tiina Tuomela, CFO
Tiina Tuomela CFO @fortum Powering a thriving world
Slide 7: Comparable net profit and EPS increased in the second quarter
Comparable net profit and EPS increased in the second quarter Lower power prices reflected in the result (LTM) MEUR II/2024 II/2023 I-II/2024 I-II/2023 2023 LTM Sales 1,255 1,368 3,270 3,632 6,711 6,349 • Comparable operating profit at EUR 1,347 million Comparable EBITDA 326 344 948 1,125 1,903 1,72
Slide 8: Income statement
Income statement MEUR, continuing operations II/2024 II/2023 I-II/2024 I-II/2023 2023 LTM Sales 1,255 1,368 3,270 3,632 6,711 6,349 Other Income 23 5 33 13 32 51 • EUR 16 million in Q2 CompOP from sold Indian solar asset Materials and services -696 -790 -1,864 -2,037 -3,808 -3,635 Fixed costs -255 -
Slide 9: Results impacted by lower power prices
Results impacted by lower power prices Q2/2024 Generation Comparable operating profit Profit decreased mainly due to lower (EUR million) spot and hedge prices, somewhat offset by higher hydro generation. Indian solar power sales gain in CompOP. Pjelax marginally negative. Consumer Solutions Profit i
Slide 10: Generation had the biggest impact
Generation had the biggest impact H1/2024 Generation Comparable operating profit Profit decreased mainly due to clearly (EUR million) lower spot and hedge prices, partly offset by higher hydro generation. Pjelax slightly positive. Consumer Solutions Profit increased mainly due to higher electricity
Slide 11: Low leverage and strong liquidity position
Low leverage and strong liquidity Solid credit metrics position 851 28 5 Financial net debt 'BBB+' long-term issuer credit rating, Stable outlook 528 520 'BBB' long-term issuer credit rating, Stable outlook 338 117 Fortum’s objective: Maintain solid investment grade rating of at least BBB to maintai
Slide 12: Outlook
Outlook Generation’s Nordic outright (47 TWh/a): Capital expenditure guidance: Hedges 2024: Capital expenditure, including maintenance capex of € 300 million, (excluding potential • For the rest of 2024: 75% hedged at 43 €/MWh acquisitions) expected to be € ~550 million • For 2025: 60% hedged at 42
Slide 13: Q&A
Q&A L COO | @fortum Powering a thriving world
Slide 14: Appendix
@fortum 14 Powering a thriving world
Slide 15: Nordic hydro reservoirs and wholesale power price
Nordic hydro reservoirs and wholesale power price Hydro reservoirs Power price Reservoir content (TWh) EUR/MWh 120 500 Realised daily system price 100 Futures 9 Aug 2024 400 80 300 60 200 40 Norway 100 20 Sweden 2003 2020 2022 2023 2024 Average Finland 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 16: Generation: Achieved power price at 48.6 €/MWh
GENERATION: Power generation volumes, TWh II/2024 II/2023 Achieved power price at 48.6 €/MWh 5.4 4.6 5.5 5.8 0,2 0 Q2/2024 vs. Q2/2023 Hydro Nuclear Wind Comparable operating profit down by 13% to EUR 264 million I-II/2024 I-II/2023 Mainly due to the lower spot and hedge prices. Lower nuclear volume
Slide 17: Consumer Solutions: Improved and more normalised results
CONSUMER SOLUTIONS: Improved and more normalised Number of customers (‘000) results 2 330 2 270 Q2/2024 vs. Q2/2023 Comparable operating profit increased by EUR 2 mn to EUR 12 mn Mainly due to improved electricity sales margins and discontinuation of the regulated electricity price cap for end users
Slide 18: Other Operations: Results improved slightly
OTHER OPERATIONS: Results improved slightly Q2/2024 vs. Q2/2023 Comparable operating profit improved by EUR 9 mn to EUR -43 mn MEUR II/2024 II/2023 I-II/2024 I-II/2023 2023 LTM Mainly due to higher internal charges related to changes in internal Sales 146 127 289 262 548 575 charges for enabling fun