Fortum, an energy company, has just exceeded analysts’ average expectations in the January-March period. Their turnover was EUR 2,015 million, despite falling short of the comparison period of EUR 2,265 million from a year ago. However, this was still higher than the consensus forecast of EUR 1,828 million. The comparable EBITDA reached 662 million euros, surpassing the expected 549 million euros. The comparable operating profit was 530 million euros, exceeding the predicted 451 million euros by analysts.
The decline in earnings can be attributed to several factors including a mild winter leading to a decrease in gas and electricity prices in Europe. Additionally, high LNG imports and increased renewable electricity production also contributed to the decline in earnings. Furthermore, Fortum initiated arbitration against the Russian state in February to demand compensation for the illegal takeover of its Russian assets.
Fortum does not provide profit guidance and instead focuses on their outlook for the years 2024-2025. They plan to invest around EUR 550 million in the current year with growth investments covering 800 million euros and annual maintenance investments set at 300 million euros. Although Fortum has not provided estimates for investments in following years as previously reported they expect investing around EUR 1.7 billion in the years 2024-2026 emphasizing growth and maintenance investments which aligns with their focus on future long-term investment planning
