Quarterly summary of events

Fortum to sell its recycling and waste business to Summa Equity for approximately EUR 800 million

On 18 July, Fortum signed an agreement to sell its recycling and waste business to Summa Equity through its portfolio company NG Group. The total consideration on a debt- and cash-free basis is approximately EUR 800 million. Based on the balance sheet available at signing, Fortum would record a tax-exempt capital gain of approximately EUR 110 million; however, the final capital gain will depend on the balance sheet value at closing. The gain will be reported as Items Affecting Comparability in the Other Operations segment’s results once the transaction is closed. The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2024. 

After the divestment, Fortum continues the strategic review of its remaining Circular Solutions’ businesses: the turbine and generator services, battery recycling business, as well as ownerships in biobased solutions businesses and a UK-based waste-to-energy business. The net assets of these remaining businesses totals EUR 90 million and they have approximately 400 employees. For the last twelve months (including Q1 2024), the comparable EBITDA was EUR -29 million.

The transaction will lower Fortum’s guidance for capital expenditure. From 2025 onwards, the group’s annual maintenance capital expenditure is expected to be EUR 250 million (previously: 300 million). Due to the lower annual maintenance capital expenditure, Fortum’s capital expenditure (excluding acquisitions) for 2024–2026 is expected to be up to EUR 1.6 billion (previously: up to EUR 1.7 billion).

Read the release: Fortum to sell its recycling and waste business to Summa Equity for approximately EUR 800 million | Fortum

Fortum to sell its stakes in the biobased solutions businesses in India

Fortum announced on 23 September that it has signed an agreement to sell its 37.4% ownership in Chempolis Oy, including Fortum’s all biobased solutions businesses, and the shares in the holding company owning 40.3% in Assam Bio Ethanol Pvt Ltd in India to the Indian leading energy transition solutions provider AM Green Technology & Solutions B.V. The transaction will not have any material financial impact on Fortum Group’s result. The transactions are subject to certain closing conditions.

After the divestment, Fortum continues the strategic review of its remaining Circular Solutions’ businesses: the turbine and generator services, battery recycling business, as well as a UK-based waste-to-energy business. The net assets of these remaining businesses total approximately EUR 80 million and they have approximately 400 employees. For the last twelve months (including Q2 2024), the comparable EBITDA was approximately EUR -20 million.

Read the release: Fortum to sell its stakes in the biobased solutions businesses in India | Fortum

Other announcements during the quarter

Fortum announced on 2 September 2024 that the first batch of Westinghouse Electric Company nuclear fuel has been loaded into Fortum’s Loviisa Nuclear Power Plant during its annual outage in August. The loading of the new fuel is a significant milestone that guarantees a reliable Western alternative for fuel deliveries to the Loviisa power plant. In November 2022, Fortum signed an agreement with Westinghouse for the design, licensing and supply of a new fuel type for the Loviisa Nuclear Power Plant. During the annual outages in 2023, one test element manufactured by Westinghouse, which did not contain actual uranium pellets, was loaded into the Loviisa 2 reactor of the power plant. The test element was used to obtain mechanical operating experiences of the new fuel type. In this year's annual outages, the test element was found to have worked as expected.

Read the release: First batch of Westinghouse fuel loaded at Fortum’s Loviisa nuclear power plant | Fortum

On 11 September 2024 Fortum announced that its Loviisa power plant is upgrading the automation of the turbine protection and control systems of both power plant units. The upgrade is part of the lifetime extension-related investments consisting of continuous improvements to ensure reliable electricity production until the end of the plant's lifetime. Fortum has signed an agreement with Valmet to upgrade the turbine automation. Valmet will supply the turbine protection and control systems for both Loviisa power plant units as well as for training and development simulators.

Read the release: Fortum’s Loviisa nuclear power plant turbine automation to be upgraded | Fortum

Fortum announced on 17 September that the Board of Directors has decided to launch the savings period for the year 2025 under its Employee Share Savings (ESS) programme. The participants of the ESS programme will invest a part of their monthly salary and based on this investment will, as a gross reward, be granted one matching share for each two purchased savings shares after approximately three years from the beginning of the savings period. The prerequisites for receiving matching shares are that a participant holds the purchased savings shares until the end of the holding period, and that his or her employment has not ended before the end of the holding period. The holding period for the 2025 savings period will end on 29 February 2028. The total amount of all savings for the 2025 savings period may not exceed EUR 6 million.

Read the release: Fortum to launch the savings period for 2025 under its employee share savings programme | Fortum

Transactions in the comparison period of 2023

There were no meaningful capital gains affecting the operating profit or comparable operating profit during Q1–Q3 of 2023.

Financial calendar 

Financial Statements and Operating and Financial Review for 2024 will be published during week 8, starting on 17 February 2025, at the latest

Fortum's Annual General Meeting 2025 is planned to be held on 1 April 2025. The Board of Directors will summon the Annual General Meeting and publish the dates related to possible dividend at a later date