Finnish Fortum Loses on German Subsidiary Business
Finnish state utility Fortum reported an adjusted net loss of €176 ($206)mn on its Q3 trading, down from a €153mn profit last year, as German Uniper made a loss then too. Earnings before interest and tax (Ebitda) were less than half 2019's €295mn, at €132mn, it said November 17.
Its operating profit was €60mn, half last year's €124mn, thanks to a €291mn sales gain from the divestment of the Jarvenpaa district heating operations. That outweighed a €242mn fair value change of non-hedge-accounted derivatives.
CEO Markus Rauramo said the results reflected Covid-19, low Nordic power prices thanks to full reservoirs and the seasonally weak third-quarter results of the Uniper segment. But "prudent hedging and portfolio rotation" helped it, he said, and Uniper has not changed its Ebit outlook for the year.
He said the company would present its plans for combining the operations of Uniper and Fortum and the new corporate strategy at next month's investors' day.