The Finnish electricity group Fortum has released its 2022 results, posting a 37% growth in sales to €8.8bn but a 70% fall in its operating profit to less than €1.3bn, mainly due to changes in fair values of non-hedge accounted derivatives, impairment charges related to Russian operations, and tax-exempt capital gains from divestments.
In 2022, Fortum generated 44.2 TWh (-10%), including 42.9 TWh of electricity in Nordic countries (-8.3%, due to a 18% decrease in hydropower generation). Excluding Russia, the group sold 64.7 TWh of electricity (-11%), 4.8 TWh of gas (-20%, owing to warmer weather in the Nordics and Poland and to higher gas prices), and 7.6 TWh of heat (-24%, due to the divestment of the Baltic district heating business and to the sale of Fortum’s 50% stake in the Norwegian district heating company Fortum Oslo Varme). The group achieved significantly higher prices than in 2021 (€59.9/MWh, i.e., +40% compared to 2021). In Russia, that Fortum decided to exit in May 2022, electricity sales remained stable at around 32 TWh and heat sales dipped by 8% to 15.7 TWh.
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.