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Research

Fortum: Electricity market returned to normal quickly

By Juha KinnunenAnalyst
Fortum
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We have made major estimate revisions ahead of the company's Q4 report, and our estimates for the coming years were significantly lowered. Behind this is 1) the sharp fall in electricity prices (including futures) and 2) Fortum's almost one billion write-down in Russia, which weighs on the Q4'22 reported figures. The normalization of the electricity market was not a surprise in the longer term, but in the last few months we have seen a rapid fall. In connection with the Q4 report, Fortum will also announce an updated strategy, which we expect to focus on the company's traditional core areas in the Nordic region.

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Fortum is active in the energy sector. In addition to the provision of electricity, a number of technical solutions are offered in heat optimization as well as apps that are used to keep track of energy consumption. The company also provides charging stations for electric cars. The largest activity is found around the Nordic market. The company was founded in 1998 and is headquartered in Espoo.

Read more on company page

Key Estimate Figures28.02.2023

202122e23e
Revenue6,422.08,658.98,558.9
growth-%-86.9 %34.8 %-1.2 %
EBIT (adj.)1,429.01,678.82,076.8
EBIT-% (adj.)22.3 %19.4 %24.3 %
EPS (adj.)-2.43-2.931.32
Dividend1.140.380.57
Dividend %4.2 %2.1 %3.2 %
P/E (adj.)neg.neg.13.5
EV/EBITDA6.78.06.9

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