Fortum announces all-time best result for 2007

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The Finnish energy company Fortum published its all-time best annual result when figures for 2007 were posted on Thursday.
      The year was characterised by high precipitation and mild winter temperatures. Throughout the year, a strong hydrological situation combined with low CO
2 emission allowance prices led to low Nordic spot prices. Despite the challenging market conditions, Fortum improved its performance compared with the previous year.
     
The group’s turnover at the end of the year was EUR 4,479 million, which is slightly less than the average forecast by analysts, and marginally lower than in 2006.
      After deductions for exceptional items, the group reported net profit rising to EUR 1,206 million, up from EUR 1,120 million in 2006.
     
The aggregate profit for the period was EUR 1,608 million, up from EUR 1,120 in the previous year. Fortum’s earnings per share were EUR 1.74 (1.22 in 2006).
      The return on capital employed was 14 % for the year (13 % for 2006), while the return on shareholders’ equity was 16.8%, as against 14 % in the previous year.
      The above figures are based on Fortum’s key figures and financial ratios adjusted by Helsingin Sanomat.
     
As a consequence of the Group’s extremely strong financial position, Fortum’s Board is proposing a dividend of EUR 1.35 per share for last year, representing a payout of approximately EUR 1.2 billion. The sum is some EUR 100 million higher than the total amount of dividends for 2006.
      Moreover, the company has made a proposal to authorise the Board of Directors to decide to repurchase the company's own shares to a value of up to EUR 300 million. As this step can be compared with the payment of dividends, the sum of money to be given to the shareholders will amount to a total of EUR 1.5 billion.
     
In order to benefit from its strong balance sheet, Fortum is also evaluating opportunities to participate in share issues and ownership restructurings in the Russian power generation sector.
      Moreover, this would further strengthen the company’s position in the Russian wholesale power market.
      Fortum Oyj is a Finnish listed energy company, which is focusing on the Nordic and Baltic countries, Poland and the north-west of Russia.
     
The majority of Fortum’s shares (50.9%) are owned by the Finnish state.
      At the end of 2007, the company employed some 8,300 people.
      Fortum was formed in 1998 through the merger of the electricity generating company Imatran Voima and the oil and petrochemicals company Neste. In 2005, the oil business was separated once again from Fortum and was transferred to the re-established Neste Oil.
      Fortum is headquartered in the 84-metre tall building (completed in 1978) in Espoo's Keilaniemi - the first such massive edifice for a Finnish company, though it is now surrounded by a cluster of similar office blocks, housing Nokia and Kone among others.


Links:
  Fortum: Financial Statements 2007
  Fortum

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