Q3 2024 Fortum Oyj Earnings Call Transcript
Key Points
- Fortum Oyj (FOJCF) achieved resilient results despite lower spot prices, thanks to successful hedging and a versatile CO2-free generation fleet.
- The company is progressing well with the lifetime extension of the Loviisa nuclear power plant, securing reliable Western alternative fuel supply.
- Fortum Oyj (FOJCF) is committed to exiting coal by 2027, with a significant investment in biomass technology at the CzÄstochowa plant in Poland.
- The company is actively developing industrial sites in Finland for data centers and sustainable aviation fuel projects, indicating strong future growth potential.
- Fortum Oyj (FOJCF) has a strong financial position with a low leverage ratio of 0.4 times, providing flexibility for future investments or shareholder returns.
- The generation segment's results were negatively impacted by lower spot and hedge prices, leading to a decline in comparable operating profit.
- Finnish and Swedish industrial power demand is still lagging, with delays in industrial investments, particularly in green transition projects.
- The company faces challenges with lower demand for environmental values, impacting the optimization premium.
- Fortum Oyj (FOJCF) is involved in legal proceedings against its former Russian subsidiary, which could take years to resolve.
- The company has not signed any new long-term power purchase agreements (PPAs) in the third quarter, indicating potential challenges in securing future contracts.
Good morning, everyone. A warm welcome to Fortum's joint webcast and news conference for the investors and media on our third quarter and January-September '24 financial results. My name Ingela Ulfves, and I'm Head of Investor Relations at Fortum. As always, this event is being recorded and a replay will be available on our website later today.
With me here in the studio are our CEO, Markus Rauramo; and CFO, Tiina Tuomela. Markus and Tiina will present the group's financial and operational performance during the third quarter and first nine months of this year. After the presentations, we will open up for questions in our Q&A session. I now hand over to you, Markus, to start.
Thank you very much, Ingela. A warm welcome to our investor and media call also from my side. I will start by going through the key elements of our financial performance, market
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