Pre January–June 2024 Half-year Financial Report
Quarterly summary of events
Major events and announcements during the latest quarter are gathered to this page.
Fortum sells its ownership in the 185-MW Indian solar portfolio and considers alternatives for its remaining operations in India
On 3 May, Fortum announced that it had signed an agreement to sell the remaining 43.75% share of its Indian solar power portfolio to Gentari Renewables India Pte. Ltd., a subsidiary of clean energy solutions provider Gentari Sdn. Bhd. The portfolio comprises four solar power plants in India with the total capacity of 185 MW: Amrit (5 MW), Kapeli (10 MW), Bhadla (70 MW) and Pavagada (100 MW). In the transaction, the other owners – UK Climate Investments Lakeside Limited (40%) and a fund managed by Evli Fund Management Ltd (16.25%) – are also selling their ownership. In 2018–2019, Fortum sold 56.25% of the company.
Fortum will record some profits from the divestment in connection with the closing of the transaction, expected to take place in the second quarter of 2024.
Read the release: Fortum sells its ownership in the 185-MW Indian solar portfolio and considers alternatives for its remaining operations in India | Fortum
Fortum signed its first green loan
On 5 June, Fortum announced that it had signed its first green loan under the company’s Green Finance Framework, which was established in January. The EUR 300 million green loan, aimed to refinance renewable energy and energy efficiency projects, is granted by OP Corporate Bank plc. The loan period is five years, and it has a one-year extension option. The loan partly refinances a current loan of EUR 700 million of which Fortum will prepay EUR 400 million in June.
Read the release: Fortum signs its first green loan under its Green Finance Framework | Fortum
Fortum moves forward with its commitment to set targets in line with the SBTi
On 4 April, Fortum announced that it had gone through the due diligence process after submitting the official commitment letter for the Science Based Targets initiative (SBTi). Fortum is committed to setting near- and long-term company-wide emissions reduction targets in line with climate science with the SBTi.
Already in its strategy, launched in March 2023, Fortum stated that it will commit to SBTi. Fortum will now continue the work by further developing its transition plan and defining near- and long-term company-wide emissions reduction path and targets in line with and validated by the SBTi. Fortum’s environmental targets will be revisited and aligned to correspond to the SBTi Net-Zero Standard during the target setting process. Fortum’s transition will include exit from coal and emission reduction in the company’s own operations as well as its electricity sales footprint.
Read the release: Fortum moves forward with its commitment to set targets in line with the Science Based Targets initiative (SBTi) | Fortum
Fortum’s Loviisa nuclear power plant low-pressure turbines to be modernised
29 May Fortum announced that its Loviisa nuclear power plant’s low-pressure turbines will be modernised. The modernisations, starting in 2026, are part of the lifetime extension-related investments consisting of continuous improvements to ensure reliable electricity production until the end of the plant's lifetime. The modernisation of the turbines will also increase the total capacity of the plant by approximately 38 megawatts, increasing the output of the power plant during its lifetime by approximately 7 TWh.
In February 2023, the Finnish Government granted a new operating license for the power plant until 2050. As a result, the Finnish society will receive stable, carbon-free and secure supply of electricity from Loviisa well into the future. Over the course of the new licence period, the power plant is expected to generate up to 177 TWh (earlier: 170) of emission-free electricity.
It is estimated that the investments related to the lifetime extension will amount to approximately one billion euros by 2050. Over the past five years, Fortum has invested approximately 200 million euros in refurbishing the Loviisa power plant.
In the turbine project, eight low-pressure turbine housings and their internal parts will be renewed. The project will significantly improve the efficiency of the turbine plant’s electricity production without increasing the thermal output of the reactor. The modernisation is targeting only the turbines, so it won’t impact the reactor plant or nuclear safety.
The total electricity production capacity of the units at the Loviisa power plant is currently 1,014 MW.
Read the release: Fortum’s Loviisa nuclear power plant low-pressure turbines to be modernised, increasing capacity by approximately 38 MW | Fortum
Finland’s third largest wind farm inaugurated in Pjelax
The Pjelax wind farm of 56 wind turbines, a joint project between Finnish energy companies Fortum and Helen, was inaugurated on 14 May 2024. Located in the areas of Närpiö and Kristiinankaupunki in western Finland, the wind farm will produce more than 1 TWh of wind power annually, around 5% of Finland’s total wind power production. Fortum owns 60% of the wind farm, while Helen owns 40%. Helen will purchase around 50% of the wind farm’s electricity production until the end of its life cycle. The construction of the Pjelax wind farm began in January 2022 and was completed on schedule in good cooperation with more than 400 landowners and several local business owners, organisations and officials.
Read the release: Finland’s third largest wind farm inaugurated in Pjelax | Fortum
Fortum to modernise 110-year-old Malta hydropower plant in Sweden
On 17 April, Fortum announced that it had decided to extensively modernise the Malta hydropower plant in Uvån, in the municipality of Hagfors, Sweden as part of its efforts to secure and increase the production of clean energy. The investment is approximately EUR 20 million (SEK 250 million). Fortum’s investment will improve the plant’s lifespan and efficiency, ensuring a continued supply of reliable and sustainable electricity production for the next 50 years. Annual production will increase by 5 GWh to 33 GWh per year, which corresponds to 1,650 electrically heated homes. The work is planned to begin in spring 2024 and is expected to be completed in autumn 2026.
Read the release: Fortum to modernise 110-year-old Malta hydropower plant in Sweden | Fortum
Changes in Fortum’s Leadership Team
On 28 June, Fortum announced that Nora Steiner-Forsberg, Executive Vice President, Legal, General Counsel, and Eveliina Dahl, Executive Vice President, People and Procurement, will leave Fortum latest at the end of 2024 to take positions in other companies. The recruitment of Nora Steiner-Forsberg’s and Eveliina Dahl’s successors will start immediately.
In addition on 27 June, was announced that Bernhard Günther, Chief Transformation Officer and member of Fortum Leadership Team, will leave Fortum at the end of 2024 by mutual agreement. As the transformation initiatives announced in March 2023 are proceeding as planned and the work will be handed over to the line organisation, there is no further need for a dedicated Transformation Office.
Read the releases:
Changes in Fortum’s Leadership Team: Bernhard Günther to leave Fortum | Fortum
Fortum Shareholders' Nomination Board 2024–2025
On 7 June, the following members were appointed to Fortum Shareholders' Nomination Board:
- Maija Strandberg, Director General, Prime Minister’s Office, Ownership Steering Department (Chair),
- Jouko Pölönen, President and CEO, Ilmarinen Mutual Pension Insurance Company, and
- Risto Murto, President and CEO, Varma Mutual Pension Insurance Company.
The Chair of Fortum’s Board of Directors Mikael Silvennoinen will serve as expert to the Nomination Board without right to vote.
The now appointed Nomination Board will forward its proposals for the 2025 Annual General Meeting to the Board of Directors by 31 January 2025.
Read the release: Fortum Shareholders' Nomination Board 2024-2025 | Fortum
Transactions in the comparison period of 2023
There were no meaningful capital gains affecting the operating profit or comparable operating profit during Q1–Q2 of 2023.
Financial calendar 2024
- Silent period prior to the Half-year 2024 Financial Report 16 Jul–15 Aug 2024
- Half-year 2024 Financial Report 15 August at approx. 9:00 EEST
- Silent period prior to the Jan–Sep 2024 Interim Report 29 Sep–29 Oct 2024
- Jan–Sep 2024 Interim Report 29 Oct at approx. 9:00 EEST