Fortum's revenues rose by 5% in 2016 (Finland)

Finnish power company Fortum has just released its 2016 results, posting a 5% increase in sales to €3.6bn. This was pushed by a 20% increase in revenues from its City Solutions segment (€1.4bn), while revenues from its Generation business decreased by 4% to €1.7bn.



The group's installed capacity slightly declined in 2016 (-2.6%) to 13,334 MW, due to a 421 MW decrease in CHP capacities in Russia (from 4.9 GW to 4.5 GW, related to the sale of the Tobolsk CHP power plant). Installed capacity in other countries remained stable, at 3.8 GW in Finland, 4.7 GW in Sweden, 186 MW in Poland and 124 MW in other countries. Fortum's power generation in the Nordic countries (including the United Kingdom) declined by 6% to 45.3 TWh, due to a 18% decrease in hydropower generation (to 20.7 TWh), that was partly offset by a 6% increase in nuclear power (to 24.1 TWh). In Russia, Fortum's power generation remained stable at 25.5 TWh.



In 2016, Fortum sold 84.7 TWh of electricity (+0.5%); sales remained broadly stable in Finland (+2.2% to 22.8 TWh) and in Russia (+0.3% to 29.5 TWh) but declined by 3.3% in Sweden to 28.8 TWh (they grew by 29% to 3.6 TWh in other countries). Heat sales contracted by 11% to 29.4 TWh, mostly due to an 18.5% drop in Russia (to 20.7 TWh). Electricity distribution activities in Sweden were sold in 2015 and the company is no longer active on this business segment.



Fortum's capital expenditures dipped by 5.6% (€35m) to €599m in 2016; the group invested €196m in power generation (€122m in Finland and €75m in Sweden, mainly in Swedish hydropower and Finnish nuclear power), €112m in City solutions (including €58m in Poland and €38m in Finland) and €201m in Russia (-29.5%, mainly in thermal power).