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.
  • TickerFORTUM
  • ISINFI0009007132
  • ExchangeNasdaq Nordic Helsinki
  • SectorElectricity
  • CountryFinland

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

The general evaluation of FORTUM (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 3 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 October 2, 2020, the closing price was EUR 17.63 and its potential was estimated at EUR 20.46.

Fortum Oyj: 1 director maiden bought

A director at Fortum Oyj maiden bought 2,000 shares at 17.325EUR and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of b...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : Short-term uncertainties. Neutral vs Buy, target price of € 17.0 vs € 18.0

>Q2 results miss forecasts - Fortum's Q2 2020 results, reported yesterday morning, fell short of our expectations and those of the consensus. Comparable EBITDA came in at € 512m vs our forecast of € 577m and the consensus of € 574m. Comparable operating profit came in at € 207m vs € 242m in our expectations and those of the consensus. Reported net income came to € 314m, including € 178m of exceptional items. Recurring net income came in at € 136m vs our estimate of €...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : Incertitudes à court terme. Neutre vs Achat et OC à 17.0 € vs 18.0 €

>Résultats T2 inférieurs aux attentes - Fortum a publié mercredi matin ses résultats T2 qui sont ressortis inférieurs à nos attentes et à celles du consensus. L’EBITDA comparable est ressorti à 512 M€ vs nos attentes à 577 M€ et celles du consensus à 574 M€. Le résultat opérationnel comparable est ressorti à 207 M€ vs nos attentes et celles du consensus à 242 M€. Le RN publié est ressorti à 314 M€ incluant 178 M€ d’éléments exceptionnels. Le RN récurrent est ressorti...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : A weak Q2 in a challenging environment

>Q2 2020 results below expectations - Fortum this morning released Q2 results below expectations. Like-for-like EBITDA came in at € 512m, up by 38% y-o-y, vs ODDO BHF at € 577m and consensus at € 574m. L-f-l EBIT came in at € 207m vs € 232m in H1 2019 (ODDO BHF and consensus forecasts at € 242m and € 243m, respectively). Recurring EPS came in 80% lower y-o-y at € 0.15 vs ODDO BHF at €0.22 and consensus at €0.21. Half-year operating results were positively marked by...

Fortum Oyj: 1 director maiden bought

A director at Fortum Oyj maiden bought 2,000 shares at 17.325EUR and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of b...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : Short-term uncertainties. Neutral vs Buy, target price of € 17.0 vs € 18.0

>Q2 results miss forecasts - Fortum's Q2 2020 results, reported yesterday morning, fell short of our expectations and those of the consensus. Comparable EBITDA came in at € 512m vs our forecast of € 577m and the consensus of € 574m. Comparable operating profit came in at € 207m vs € 242m in our expectations and those of the consensus. Reported net income came to € 314m, including € 178m of exceptional items. Recurring net income came in at € 136m vs our estimate of €...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : Incertitudes à court terme. Neutre vs Achat et OC à 17.0 € vs 18.0 €

>Résultats T2 inférieurs aux attentes - Fortum a publié mercredi matin ses résultats T2 qui sont ressortis inférieurs à nos attentes et à celles du consensus. L’EBITDA comparable est ressorti à 512 M€ vs nos attentes à 577 M€ et celles du consensus à 574 M€. Le résultat opérationnel comparable est ressorti à 207 M€ vs nos attentes et celles du consensus à 242 M€. Le RN publié est ressorti à 314 M€ incluant 178 M€ d’éléments exceptionnels. Le RN récurrent est ressorti...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : A weak Q2 in a challenging environment

>Q2 2020 results below expectations - Fortum this morning released Q2 results below expectations. Like-for-like EBITDA came in at € 512m, up by 38% y-o-y, vs ODDO BHF at € 577m and consensus at € 574m. L-f-l EBIT came in at € 207m vs € 232m in H1 2019 (ODDO BHF and consensus forecasts at € 242m and € 243m, respectively). Recurring EPS came in 80% lower y-o-y at € 0.15 vs ODDO BHF at €0.22 and consensus at €0.21. Half-year operating results were positively marked by...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Fortum : A weak Q2 in a challenging environment

>Q2 2020 results below expectations - Fortum this morning released Q2 results below expectations. Like-for-like EBITDA came in at € 512m, up by 38% y-o-y, vs ODDO BHF at € 577m and consensus at € 574m. L-f-l EBIT came in at € 207m vs € 232m in H1 2019 (ODDO BHF and consensus forecasts at € 242m and € 243m, respectively). Recurring EPS came in 80% lower y-o-y at € 0.15 vs ODDO BHF at €0.22 and consensus at €0.21. Half-year operating results were positively marked by...

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO : Centrica cède Direct Energy à NRG Energy : quel read-X sur l’Europe ?

>Centrica cède sa commercialisation américaine d’énergies à NRG Energy - Centrica a annoncé la cession de sa filiale Direct Energy qui commercialise de l’énergie (électricité et gaz) aux Etats-Unis au groupe américain NRG Energy. La valeur d’entreprise de la transaction ressort à 3 625 M$. Direct Energy est l’un des plus importants fournisseurs de détail d’électricité, de gaz naturel en Amérique du Nord. Direct Energy a son siège social à Houston, au Texas, et des bur...

Expert Corporate Governance Service (ECGS)

Fortum – AGM 23 April 2020

In general, Fortum is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 15 approval of the remuneration of the external auditor is sought. In view of the substantial amount of non-audit fees, ECGS recommends to vote OPPOSE. Under ITEM 16 the audit committee proposes to re-appoint Deloitte as the Company's external auditor. Based on the current term in office of the auditor, ECGS recommends to vote OPPOSE.  Finally, under ITEM 20 shareholder WWF Finland (shareholding undisclosed) proposes that the Paris Agreement ...

Expert Corporate Governance Service (ECGS)

Fortum - AGM 17 March 2020

In general, Fortum is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 15 approval of the remuneration of the external auditor is sought. In view of the substantial amount of non-audit fees, ECGS recommends to vote OPPOSE. Under ITEM 16 the audit committee proposes to re-appoint Deloitte as the Company's external auditor. Based on the current term in office of the auditor, ECGS recommends to vote OPPOSE. Finally, under ITEM 20 shareholder WWF Finland (shareholding undisclosed) proposes that the Paris Agreement 1...

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...

ING
Nadège Tillier

IG European Utilities/A mixed bag of indicators

The Covid-19 virus and the measures taken to control the pandemic have led to the sharpest drop in energy demand since the Great Depression. The first five months of 2020 saw electricity demand declining by 6% across Europe with Italy (-10%), France (-9%) and Spain (-7%) the hardest hit. April and May reached the record of -12% on a European aggregate level. The Energy Institute Agency (EIA) forecasted an average 8% electricity demand slump for Europe in 2020. Gas and power prices plunged significantly on very weak demand due to both mild temperatures and the pandemic measures. By the end of M...

ING
Nadège Tillier

IG European Utilities/Not all utilities are equal in the safe haven

The large majority of corporates will be negatively impacted by the Covid-19 pandemic, but some more than others. European utilities are seen as part of the safe havens. We agree with this but only to a certain extent. The Utilities sector is certainly less volatile than other consumer-related sectors. However, not all utilities are equal in front of the pandemic. Our view is that regulated network companies will suffer the least, while those largely exposed to power and gas generation and supply will be the hardest hit. The negative impact will be delayed by around 12 months for integrated an...

ING
Nadège Tillier

Fortum/9M19 positive, rating downgrade on the way is fully priced

Fortum's 9M19 financial results were positive with comparable EBITDA up 15% to €1,213m, however, taking into account adjustments for asset valuation and associates and joint ventures, EBITDA is down to €1,087m according to our calculations. We estimate a net debt position at €5.6bn vs €6.6bn at YE18 due to a much higher cash and cash equivalents position on the balance sheet at 9M19 vs YE18. Our FFO/net debt points to a 26% ratio for the past twelve months and a net debt/EBITDA of 3.8x. Despite an improvement in credit metrics vs YE18, the ratios do not yet fulfil the requirements for ...

Fortum Oyj: Update following a rating review for downgrade

Our credit view of Fortum reflecting the reflecting the risks associated with acquisition of Uniper and the impact of the transaction on the company’s credit quality.

Moody's reviews Fortum's Baa2 ratings for downgrade

Rating Action: Moody's reviews Fortum's Baa2 ratings for downgrade. Global Credit Research- 10 Oct 2019. London, 10 October 2019-- Moody's Investors Service has today placed the Baa2 issuer and senior unsecured ratings of Fortum Oyj on review for downgrade.

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/27/2020

After years of unrealised €/$ bullish forecasts the single currency is finally on an upward trajectory. This change of course reflects a radical shift in the perception of the political risk associated with the European Union. The starting point for the rise (17 May) corresponds, moreover to the Franco-German announcement of the stimulus plan project. The European agreement of 21 July to begin the implementation process argues in favour, in a context of an upturn in PMIs, in favour of...

Louis Boujard, CFA ...
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF Small & MIDCAP MORNING NEWS - 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • Jean Danjou
  • Louis Boujard, CFA
  • Nicolas David
  • Olfa Taamallah
  • Philippe Ourpatian
  • Stephane Houri
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/18/2020

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Alfred Glaser ...
  • Benoit Valleaux
  • Bruno Cavalier
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • Jean Danjou
  • Louis Boujard, CFA
  • Nicolas David
  • Olfa Taamallah
  • Philippe Ourpatian
  • Stephane Houri
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 18/05/2020

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

The general evaluation of FORTUM (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 3 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 October 2, 2020, the closing price was EUR 17.63 and its potential was estimated at EUR 20.46.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

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