Q4 2024 Fortum Oyj Earnings Call Transcript
Key Points
- Fortum Oyj (FOJCF) achieved a higher optimization premium of EUR8.7 per megawatt hour in 2024, exceeding their target range of EUR6 to EUR8.
- The company successfully divested its recycling and waste business for EUR800 million, recording a tax-exempt capital gain of EUR176 million.
- Fortum Oyj (FOJCF) maintained a strong balance sheet with a leverage ratio of 0.2 times, indicating financial stability.
- The board proposed a dividend of EUR1.40 per share, including a special dividend, reflecting a strong commitment to shareholder returns.
- Fortum Oyj (FOJCF) continued to progress in its decarbonization efforts, including the closure of its last coal-fired unit in Suomenoja ahead of schedule.
- Comparable operating profit declined both for the quarter and on an annual basis due to lower power prices, particularly affecting the generation segment.
- The company's nuclear availability target of 90% was not met, with an actual availability of 84% due to unexpected outages.
- Fortum Oyj (FOJCF) faced challenges in achieving its long-term hedging target, with only 18% of the rolling 10-year volume hedged by the end of 2024.
- The financial impact of lower nuclear volumes was significant, amounting to tens of millions of euros.
- Market conditions and regulatory decisions are not yet favorable for new nuclear investments, delaying potential growth in this area.
Good morning everyone. It is my pleasure to welcome you to Fortum's joint webcast and news conference for the investor community and media on our fourth quarter and full year '24 financial results. My name is Ingela Ulfves and I am Head of Investor Relations at Fortum. As always, this event is being recorded and you will find a replay on our website later today.
With me here in the studio are our CEO, Markus Rauramo; and our CFO, Tiina Tuomela. Markus and Tiina will present the group's financial and operational performance during both the fourth quarter and the full year '24 and how our strategy execution has progressed during the year. After the presentations, we again open up for questions on our Q&A session.
I now hand over to Markus to start.
Thank you very much, Ingela. A warm welcome to our investor and media call also from my side. I will
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