Fortum Oyj

Fortum is an energy company. Co.'s operations are organised in five divisions: Hydro Power and Technology and Nuclear and Thermal Power, which are engaged in its hydro, nuclear and thermal power generation, services, portfolio management and trading as well as technology and research and development functions; Heat, Electricity Sales and Solutions, which consists of Co.'s combined heat and power production, district heating and business-to-business heating solutions, solar business, electricity sales and related customer offering; Russia, which consists of power and heat generation as well as heat distribution in Russia; and Distribution, which focuses on distribution activities in Sweden.
  • TickerFUM1V
  • ISINFI0009007132
  • ExchangeNasdaq Nordic Helsinki
  • SectorElectricity
  • CountryFinland

Analysts

Expert Corporate Governance Service (ECGS)

Fortum, March 26 2019

In general, Fortum is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 8, the board of directors proposes to distribute a dividend per share of EUR 1.10 for FY 2018. As a matter of principle, ECGS believes that dividends should be covered by consolidated earnings (per share) and supported by a strong balance sheet in terms of solvency and leverage. In said perspective, ECGS notes that the proposed dividend is NOT covered by EPS as well FCF for the third year in a row. In its previous report ECGS reserved the right...

Fortum OYJ – Proxinvest Corporate Governance Rating ® : B

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Morten Jensen

Fortum (No_rec, TP: EUR) - Discontinuing coverage

We have discontinued coverage of Fortum. Our last published recommendation, target price and estimates should no longer be relied upon.

Henri Parkkinen

FORTUM - Symbiosis of earnings growth and dividend

Anis Zgaya ...
  • Bruno Cavalier
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Louis Boujard
  • Martial Descoutures
  • Olfa Taamallah
  • Philippe Ourpatian
  • Pierre Corby
  • Stephane Houri
  • Steven Gould
  • Veysel Taze
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/04/2019

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Fortum Oyj: Update to credit analysis

Our credit view of Fortum reflecting the company's high financial leverage post acquisition of a stake in Uniper.

Fortum Oyj: Further OL3 delay illustrates significant risks in nuclear construction

A short comment on the further delay in the planned commissioning of OL3.

Morten Jensen

Fortum (No_rec, TP: EUR) - Discontinuing coverage

We have discontinued coverage of Fortum. Our last published recommendation, target price and estimates should no longer be relied upon.

Henri Parkkinen

FORTUM - Symbiosis of earnings growth and dividend

Anis Zgaya ...
  • Bruno Cavalier
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Louis Boujard
  • Martial Descoutures
  • Olfa Taamallah
  • Philippe Ourpatian
  • Pierre Corby
  • Stephane Houri
  • Steven Gould
  • Veysel Taze
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/04/2019

...

Anis Zgaya ...
  • Bruno Cavalier
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Louis Boujard
  • Martial Descoutures
  • Olfa Taamallah
  • Philippe Ourpatian
  • Pierre Corby
  • Stephane Houri
  • Steven Gould
  • Veysel Taze
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 04/02/2019

...

Anis Zgaya ...
  • Louis Boujard
  • Philippe Ourpatian

Fortum : Results in line. Neutral recommendation and target price of € 21 reiterated.

>Results broadly in line with forecasts - Fortum published last Friday, 1 February, results in line with operational expectations. Comparable EBITDA amounted to €1,523m (Oddo-BHF’s estimate at €1,481m and the consensus at € 1,505m), incl. a € 26m gain on the sale of 54% of the Fortum solar power plants in India. Underlying operating profit totalled € 987m (Oddo-BHF’s estimate: € 1,029m and the consensus at € 972m) compared to € 811m in 2017. Adjusted 2018 EPS undersh...

Alain William ...
  • Alfred Glaser
  • Anis Zgaya
  • Bruno Cavalier
  • Delphine Brault
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Valentin Pernet

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 01/28/2019

The underperformance from Vinci and Eiffage end-2018 appears overdone: motorway traffic has admittedly been penalised by the gilets jaunes (“yellow vests”) movement but visibility remains excellent on cash flow generation with highly attractive valuations (FCF yield of 7% for Vinci and 10% for Eiffage). While M&A risk is henceforth more limited, we are upgrading our recommendation on Vinci to Buy (target price of € 90) but we continue to prefer Eiffage (target price of € 103). - ...

Alain William ...
  • Alfred Glaser
  • Anis Zgaya
  • Bruno Cavalier
  • Delphine Brault
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Valentin Pernet

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 28/01/2019

...

Alfred Glaser ...
  • Anis Zgaya
  • Delphine Brault
  • Fatma Agnès Hamdani
  • Jerôme Bodin
  • Louis Boujard
  • Olivier Lebrun
  • Philippe Ourpatian
  • Roland Pfaender
  • Samantha Jeary
  • Stephane Houri
  • Sven Edelfelt
  • Veysel Taze
  • Virginie Rousseau

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 11/13/2018

...

Alfred Glaser ...
  • Anis Zgaya
  • Delphine Brault
  • Fatma Agnès Hamdani
  • Jerôme Bodin
  • Louis Boujard
  • Olivier Lebrun
  • Philippe Ourpatian
  • Roland Pfaender
  • Samantha Jeary
  • Stephane Houri
  • Sven Edelfelt
  • Veysel Taze
  • Virginie Rousseau

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 13/11/2018

...

Alexandre Iatrides ...
  • Alfred Glaser
  • Benoit Valleaux
  • Charles Lepetitpas
  • Christophe-Raphaël Ganet
  • Delphine Brault
  • Emmanuel Matot
  • Florent Laroche-Joubert
  • François Maury
  • Georges Dieng
  • Jerôme Bodin
  • Johanna Jourdain
  • Louis Boujard
  • Matthias Desmarais
  • Nicolas David
  • Philippe Ourpatian
  • Roland Pfaender
  • Stephane Houri
  • Veysel Taze

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 10/25/2018

With 2018e FCF (£ 450m +/- £ 100m before restructuring costs) expected to reflect a significant upturn from the low point of 2016 (£ 100m), the group’s medium-term target FCF of £ 1.8bn appears realistic. On this basis, we value the group at 1,120p per share and we are upgrading our recommendation from Neutral to Buy. Cf report published yesterday night. - ...

FORTUM OYJ sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of FORTUM OYJ (FI), a company active in the Alternative Electricity industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date December 14, 2018, the closing price was EUR 20.31 and its potential was estimated at EUR 21.54.

Fortum

Fortum

Fortum

Fortum

ING
Nadège Tillier

Fortum/Cash bonds offer value

Fortum's year-end 2018 results met expectations. The company enjoyed higher power prices but a lack of rain resulted in low hydro reservoirs. Fortum's top-line revenue grew 16% to €5,242m and comparable EBITDA was up 29% to €1,523m. All divisions reported growth except activities in Russia impacted by a weaker rouble and higher bad debt. The division “Generation” posted an EBITDA jump of 21% thanks to higher prices. Lower hydro was partially mitigated by higher nuclear power generation. The company's leverage target remains at 2.5x and refers to the company's structure as it is. Management tak...

ING
Nadège Tillier

European utilities/Is the carbon price hike here to stay?

In the last few years, the questions around CO2 emission reductions and renewable energies development have dominated the European Utilities sector. With Utilities' capital expenditure more and more dedicated to the ongoing roll-out of renewable capacities, the theme will continue to be strongly present in 2019 and in the coming years. European energy companies will continue to be pressed upon eliminating their most polluting energy generation technologies. The ongoing pressure comes from civil societies, environmental organizations, politicians, investors, etc. Already in 2005, the European U...

ING
Nadège Tillier

Nordic utilities/Benefitting from power price recovery

Three Nordic utilities Fortum, Statkraft and Vattenfall have reported 1H18 results. Orsted will report on 9 August. All three utilities have reported strong operational performance from their power generation activities, renewables included. The companies' financial results were, however, a bit of a mixed bag. As expected, Fortum recorded credit metrics deterioration following the additional €3.7bn debt spent on the acquisition of the 47.2% stake in Uniper. Vattenfall's revenue increase 9% but EBITDA was down 4% due to the very poor performance of its “heat” segment impacted by lower generatio...

ING
Nadège Tillier

Fortum/Uncertainty despite strong 1H18 performance

Fortum 1H18 results confirmed the positive trend seen in recent quarters. 1H18 sales jumped 23% to €2,672m (vs. €2,169m in 1H17) while comparable EBITDA grew 28% to €820m. Operating profit and net income also registered strong increases, respectively +31% and +23%. These good results were supported by higher volumes and power prices, as well as the abolition of the Swedish nuclear capacity tax. On the other hand, Fortum's “Russia” segment disappointed again with lower financial results explainable by a weaker rouble and the negative impact of bad debt provisions. Fortum will need to take me...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier

Coffee, Croissants & Credit/Unilever, Nordea and Fortum

Unilever (UNANA) reported earnings for 1H18 this morning, which came in below expectations. Revenue in the first half came in at €26.4bn, which compares to €27.7bn in 1H17 and consensus (compiled by Unilever) of €26.5bn. Underlying sales growth (USG) was 2.5% or 2.7% when excluding Spreads, missing the consensus estimate of 2.8%. Unilever already flagged in June that growth in the first half would come in below the 3-5% guidance range due to the transport strike in Brazil, which had a negative effect on USG of 60bp. Unilever expects this to partially reverse in 2H18. Revenue declined 5% on a r...

Expert Corporate Governance Service (ECGS)

Fortum, March 26 2019

In general, Fortum is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 8, the board of directors proposes to distribute a dividend per share of EUR 1.10 for FY 2018. As a matter of principle, ECGS believes that dividends should be covered by consolidated earnings (per share) and supported by a strong balance sheet in terms of solvency and leverage. In said perspective, ECGS notes that the proposed dividend is NOT covered by EPS as well FCF for the third year in a row. In its previous report ECGS reserved the right...

Fortum OYJ – Proxinvest Corporate Governance Rating ® : B

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Opportunities within Mobile Payments, Metals & Mining, and Utilities The MSCI ACWI and S&P 500 continue to recover following the most recent test of support at their respective 200-day moving averages. With market internals still mixed, support levels holding, and indexes continuing to consolidate sideways, our neutral but constructive outlook remains intact. • Major themes: Mobile Payments, Metals & Mining, and Utilities. We believe the secular mobile payments theme (ETF: IPAY) has room to run, and we expect related stocks to continue outperforming... see pages 2-4 for actionable stocks. W...

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