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

Fortum

Khaled Ben Amor ...
  • Louis Boujard
  • Philippe Ourpatian

Fortum : Solid Q2 2019 results. Neutral maintained – target price lifted to € 21.5 (vs € 21.0)

>Earnings beat forecasts - Fortum reported a good set of Q2 2019 results on the morning of Friday, 19 July. Comparable EBITDA came in at € 372m (ODDO BHF’s estimate: € 320m and the consensus: € 311m) and comparable EBIT of € 232m, +52% y-o-y (ODDO BHF: € 188m and consensus: € 183m). The generation business notched up a good Q2 with prices up +€ 1.9/MWh coupled with hydro and nuclear volumes up 0.2 TWh and 0.3 TWh respectively. Q2 also benefited from a good performance...

Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jerôme Bodin
  • Johanna Jourdain
  • Khaled Ben Amor
  • Louis Boujard
  • Matthias Desmarais
  • Michael Foundoukidis
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/22/2019

...

Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jerôme Bodin
  • Johanna Jourdain
  • Khaled Ben Amor
  • Louis Boujard
  • Matthias Desmarais
  • Michael Foundoukidis
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 22/07/2019

...

Khaled Ben Amor ...
  • Louis Boujard
  • Philippe Ourpatian

Fortum : Résultats T2 2019 solides. Neutre maintenu et OC relevé à 21.5 € vs 21.0 €

>Résultats supérieurs aux attentes - Fortum a publié vendredi matin de bons résultats T2. L’EBITDA comparable est ressorti à 372 M€ (ODDO BHF à 320 M€ et consensus à 311 M€) et l’EBIT comparable à 232 M€, +52% yoy (ODDO BHF à 188 M€ et consensus à 183 M€). L’activité Génération a enregistré un bon T2 avec des prix en hausse de +1,9 €/MWh couplés à des volumes hydro et nucléaires en hausse de 0,2 TWh et 0,3 TWh respectivement. Le T2 a également profité d’une bonne perf...

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.

Khaled Ben Amor ...
  • Louis Boujard
  • Philippe Ourpatian

Fortum : Solid Q2 2019 results. Neutral maintained – target price lifted to € 21.5 (vs € 21.0)

>Earnings beat forecasts - Fortum reported a good set of Q2 2019 results on the morning of Friday, 19 July. Comparable EBITDA came in at € 372m (ODDO BHF’s estimate: € 320m and the consensus: € 311m) and comparable EBIT of € 232m, +52% y-o-y (ODDO BHF: € 188m and consensus: € 183m). The generation business notched up a good Q2 with prices up +€ 1.9/MWh coupled with hydro and nuclear volumes up 0.2 TWh and 0.3 TWh respectively. Q2 also benefited from a good performance...

Khaled Ben Amor ...
  • Louis Boujard
  • Philippe Ourpatian

Fortum : Résultats T2 2019 solides. Neutre maintenu et OC relevé à 21.5 € vs 21.0 €

>Résultats supérieurs aux attentes - Fortum a publié vendredi matin de bons résultats T2. L’EBITDA comparable est ressorti à 372 M€ (ODDO BHF à 320 M€ et consensus à 311 M€) et l’EBIT comparable à 232 M€, +52% yoy (ODDO BHF à 188 M€ et consensus à 183 M€). L’activité Génération a enregistré un bon T2 avec des prix en hausse de +1,9 €/MWh couplés à des volumes hydro et nucléaires en hausse de 0,2 TWh et 0,3 TWh respectivement. Le T2 a également profité d’une bonne perf...

Henri Parkkinen

FORTUM - Earnings growth and a more agreeable Uniper

Louis Boujard ...
  • Philippe Ourpatian

Fortum : Q1 2019 in line with expectations – Neutral and target price of € 21.0 reiterated

>Results broadly in line with forecasts - Fortum reported its Q1 results in line with our expectations. Like-for-like EBITDA totalled € 545m (ODDO BHF and consensus forecasts: € 536m) and like-for-like EBIT came in at € 408m, virtually stable y-o-y (ODDO BHF and consensus are forecasting € 406m). The generation business had a very good Q1 with prices up by +€ 4.8/MWh, partially offset by hydro volumes down by -1.5 TWh. Q1 also benefited from a good performance from ci...

Louis Boujard ...
  • Philippe Ourpatian

Fortum : T1 2019 en ligne avec les attentes – Neutre et OC à 21.0 € réitérés

>Résultats globalement en ligne avec les attentes - Fortum a publié hier matin ses résultats T1 en ligne avec nos attentes. L’EBITDA comparable est ressorti à 545 M€ (ODDO et consensus à 536 M€) et l’EBIT comparable à 408 M€ quasi-stable yoy (ODDO BHF et consensus à 406 M€). L’activité Génération a connu un très bon T1 avec des prix en hausse de 4.8 €/MWh partiellement compensée par des volumes hydro en baisse de 1.5 TWh. Le T1 a également profité d’une bonne perform...

Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jerôme Bodin
  • Johanna Jourdain
  • Khaled Ben Amor
  • Louis Boujard
  • Matthias Desmarais
  • Michael Foundoukidis
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/22/2019

...

Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Delphine Brault
  • Florent Laroche-Joubert
  • Jerôme Bodin
  • Johanna Jourdain
  • Khaled Ben Amor
  • Louis Boujard
  • Matthias Desmarais
  • Michael Foundoukidis
  • Philippe Ourpatian
  • Pierre Tegner
  • Roland Pfaender

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 22/07/2019

...

Ahmed Ben Salem ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Baptiste Lebacq
  • Benoit Valleaux
  • Bruno Cavalier
  • Christophe-Raphaël Ganet
  • Delphine Brault
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Jerôme Bodin
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 04/29/2019

...

Ahmed Ben Salem ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Baptiste Lebacq
  • Benoit Valleaux
  • Bruno Cavalier
  • Christophe-Raphaël Ganet
  • Delphine Brault
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Jerôme Bodin
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Steven Gould

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 29/04/2019

...

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). - ...

Fortum

With a more favourable environment, FORTUM OYJ improves to Slightly Positive

FORTUM OYJ (FI), a company active in the Alternative Electricity industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date July 16, 2019, the closing price was EUR 20.42 and its potential was estimated at EUR 21.51.

Fortum

Fortum

Fortum

ING
Nadège Tillier

Nordic utilities/Fortum: cheap beyond reasons

Fortum and Vattenfall have reported strong 1H19 results today. All business segments showed improvement, notably thanks to higher power prices and volumes. We consider Vattenfall's credit metrics development to be neutral, although pressure will increase due to the energy transition and the required capital expenditure. As far as Fortum is concerned, we calculate that the strong 1H19 numbers led to better credit ratios. However, beyond the company's business and financial performance, bonds trade with an average senior curve 30bp wider than Portuguese utility EDP. We see value in Fortum's bond...

ING
Nadège Tillier

European utilities/Dry 2019 to be followed by a flood of supply

2019 will be one of the lowest years of bond supply in Euro for the IG utilities sector. As of today, there is almost nothing left to refinance this year. We would expect EUR bond issuance from Utilities to reach c.€29bn in 2019 (excluding potential US names) vs €34bn in 2018 and €44bn in 2017. The coming years offer a different picture though. From 2020 onwards, higher redemptions and capital expenditure should result in an abundance of bond supply. Redemptions will steadily pick up in the next three years. On top of this, a large number of utilities have announced ambitious capital expenditu...

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...

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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