EuroPower.com

Fortum Oyj said it will focus on achieving the targets set, delivering a strong cash flow and controlling the balance sheet. The second biggest power producer in the Nordic region said its 2002 pretax profit rose by 44% to EUR 1,008 million compared with 702 million euros in the previous year.

HASSE FARSTAD

Sales rose 7 percent to 11,148 million euros (10,410), while operating profit increased 41 percent to 1,289 million euros (914).

The synergy benefits generated by the creation of a pan-Nordic power and heat business following the acquisition of the remaining 50 percent of the former Birka Energi will exceed the target of 100 million euros a year as of 2004, the company said.

The Finnish energy group presented its preliminary 2002 results today, saying this was a good year for Fortum, with major strategic moves and significant increase in earnings.

The last few years were characterised by major restructuring. By February 2003, Fortum had agreed on transactions covering strategically important assets worth 6.5 billion euros and divested non-core assets worth 2.5 billion euros.

The key market drivers influencing Fortum´s performance are the market price of electricity and the international oil refining margin. Other important market drivers are the price of crude oil, the exchange rates of the US dollar and the Swedish krona.

According to general market information, electricity consumption in the Nordic countries is predicted to increase by about 1–2 percent each year over the next couple of years. During 2002, the average spot price for electricity was EUR 26.9 per megawatt-hour on the Nordic electricity market, or 16 percent higher than the corresponding figure in 2001.

The Finnish energy group’s board of directors proposes a dividend of 0.31 euros per share (0.26).

Fourth-quarter operating profit increased 129 percent to 391 million euros (171), while pretax profit rose 167 percent to 318 million euros (119), the company said.

(2003-02-13 11:30:43)