The Finnish electricity group Fortum has released its 2023 results, posting a 14% drop in sales to €6.7bn and a 16% decrease in operating profit to €1.7bn, mainly due to changes in fair values of non-hedge accounted derivatives, impairment charges related to Russian operations, and the non-occurrence of tax-exempt capital gains from divestments as in 2022.
In 2023, Fortum generated 46.8 TWh of electricity (+6%), including 46.4 TWh in Nordic countries (+7%). 53% of generation came from nuclear and 45% from hydropower. The group sold 69.5 TWh of electricity (+7%) and 6.4 TWh of heat (-16%). Fortum’s installed capacity increased by 8% to reach 9.2 GW (including 4.7 GW of hydro, 3.2 GW of nuclear, 1.1 GW of CHP and condensing power, and 245 MW of wind). In addition, the group achieved higher prices than in 2022 (€63.1/MWh in 2023, +5% compared to 2022).
Fortum aims to invest up to €1.5bn in growth capex over 2023-2025, mainly in hydropower and nuclear (including the Loviisa nuclear power plant lifetime extension), renewables and decarbonisation of district heating. In April 2023, Fortum’s subsidiary PAO Fortum was put under asset management by Russia, which seized control of Fortum’s assets in the country and deprived Fortum of its shareholder rights. Fortum no longer has control of its Russian operations, and its Russia segment was deconsolidated in 2023.