Q2 2024 Fortum Oyj Earnings Call Transcript
Key Points
- Fortum Oyj (FOJCF) demonstrated resilience in the second quarter despite lower power prices, supported by successful hedging and physical optimization.
- The company continued to implement its strategy by investing in clean energy, including the modernization of the Loviisa nuclear power plant and the inauguration of a wind farm in Finland.
- Fortum Oyj (FOJCF) successfully divested its stake in a 185 MW solar portfolio in India, recording a sales gain of EUR16 million.
- The company maintained a strong balance sheet with very low leverage, defined as financial net debt to comparable EBITDA at 0.5 times.
- Fortum Oyj (FOJCF) signed an agreement to sell its recycling and waste business for approximately EUR800 million, expecting a tax-exempt capital gain of EUR110 million.
- Fortum Oyj (FOJCF) experienced a decrease in comparable operating profit due to lower spot and hedge prices in the generation segment.
- The company's operating cash flow decreased compared to the previous year, with EUR876 million in the first half and EUR338 million in the second quarter.
- Fixed costs have increased somewhat due to inflation and other factors, impacting the company's cost structure.
- The Pjelax wind farm contributed negatively to the results in the quarter.
- The company faces challenges in the market with high volatility in Nordic power prices, influenced by factors such as nuclear plant maintenance and transmission capacity outages.
Good morning, everyone, and a warm welcome to Fortum's joint webcast and news conference for the investor community and media on our second quarter and half year results. My name is Daniel Lewis, and I'm Head of Investor Relations at Fortis. As always, this event is being recorded and a replay will be available later today on our website.
With me here in the studio are our CEO, Markus Rauramo, and our CFO, Tina, to Amylin, Marcus and Tina will present the group's financial and operational performance during the second quarter and the first half of this year. After the presentations, we will open up for questions and we will start with the capital markets audience and international media, after which, if needed, with which to finish and take potential questions from the Finnish media. I now hand over to Marcus to start.
Thank you very much, Ingela. A warm welcome
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