Q2 2025 Fortum Oyj Earnings Call Transcript

Aug 15, 2025 / 08:00AM GMT

Release Date Price: €15.08 (-4.98%)

Transcript

Key Points

Positve

Fortum Oyj (FOJCF) maintained a strong financial position with a financial net debt of EUR1.3 billion, even after a significant dividend payment of EUR1.3 billion.
The company successfully acquired Orange Energia, doubling its retail customer base in Poland and expanding its Consumer Solutions business.
Fortum Oyj (FOJCF) is progressing well with its efficiency improvement program, targeting a EUR100 million reduction in annual fixed costs by the end of 2025.
The acquisition of a 4.4 gigawatt wind power project development portfolio in Finland strengthens Fortum's renewable energy pipeline, aiming for at least 800 megawatts of ready-to-build projects.
The Consumer Solutions segment achieved a record high second quarter result, driven by improved gas margins and cost synergies from brand mergers.

Negative

Fortum Oyj (FOJCF) experienced record low generation volumes in Q2 due to low hydro inflow and unavailabilities in the nuclear fleet, impacting overall performance.
The company's comparable operating profit and EPS decreased significantly, reflecting lower generation volumes and power prices.
Hydro and nuclear volumes are expected to remain below normal levels for the full year 2025, with nuclear output estimated to be 2.9 terawatt hours lower.
The market environment remains uncertain due to geopolitical conflicts and US tariff plans, posing challenges to major industrial investments in the Nordics.
Spot prices in the Nordic market were lower than expected despite low generation volumes, influenced by high hydro reservoir levels and wind generation.

Ingela Ulfves

Fortum Oyj - Director - Investor Relations and Financial Communications

Good morning, everyone. A warm welcome again to Fortum's joint webcast and news conference for the investor community and media on our half year report January-June 2025. My name is Ingela Ulfves, and I'm heading the Investor Relations at Fortum. 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 again, our CEO, Markus Rauramo; and our CFO, Tiina Tuomela. Markus and Tiina will present the group's financial and operational performance during the second quarter and first half of this year. After the presentations, we will take your questions in the Q&A session.

So with this, I hand over to Markus to start.

Markus Rauramo

Fortum Oyj - President, Chief Executive Officer, Member of the Executive Management

Thank you very much, Ingela, and a warm welcome to our investor and media call also from my side. I will start by going through the key elements of our quarterly highlights

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