Support The Moscow Times!

Finnish Power Firm Fortum Beats Expectations in Russia

HELSINKI — Finnish utility Fortum on Wednesday reported better than expected first-quarter profit as a new plant in Russia helped offset the impact of low energy prices in the Nordic region.

Comparable operating profit of 343 million euros ($376 million) was down from 358 million a year earlier but beat the average forecast of 319 million in a Reuters analyst poll.

The company's Russia division reported a profit of 97 million euros, up from 73 million a year earlier and well ahead of a market consensus of 70 million euros.

"The Russia segment's comparable result showed improvement due to the new capacity, although the weak ruble, especially at the beginning of the year, clearly had a negative impact on the segment's euro results," acting chief executive Timo Karttinen said.

State-controlled Fortum has a multi-billion euro investment plan in Russia, but its growth prospects have been hit by the economic slowdown in the country and weakened the ruble.

The company reiterated that it expects to reach its run-rate operating profit level of 18.2 billion rubles this year, although the result translated into euros will be volatile.

Fortum is restructuring and looking for acquisitions after agreeing in March to sell its Nordic power grid businesses for 9.3 billion euros ($10.2 billion).

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more