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Investing.com -- Finnish energy company Fortum reported third-quarter 2025 comparable EBIT of €97 million, missing consensus estimates of €114 million by 15%.
Fortum shares initially dropped 2.5% at market open before recovering to trade slightly positive.
The company’s generation division was the main source of weakness, affected by low hydro and nuclear volumes along with higher Swedish property taxes. Negative earnings contributions from the Pjelax wind farm and district heating business also impacted results. These factors were partially offset by strong performance in the Consumer Solutions division.
Despite the quarterly miss, Fortum raised its full-year 2025 optimisation premium guidance to approximately €10/MWh, up from previous guidance of €7-9/MWh and above its long-term guidance of €6-8/MWh.
However, the company lowered its nuclear volume forecast for fiscal year 2025 to 22.4TWh, which is 3.6TWh below the normal year level of 26TWh. This volume reduction is expected to more than offset the improved optimisation premium.
Fortum reported net debt of €1,283 million, higher than expected due to weaker operating cash flow.
The company also updated its hedging positions. For the remainder of fiscal year 2025, Fortum has hedged 90% of production at €42/MWh, up from 80% at €41/MWh previously. For fiscal year 2026, hedging stands at 70% at €41/MWh compared to 60% at €40/MWh in the previous report. For fiscal year 2027, the company has hedged 45% at €39/MWh.
Additionally, Fortum announced an €85 million investment to decarbonize a coal combined heat and power plant in Poland. The project involves retrofitting the facility and switching to biomass. The investment will continue until the fourth quarter of 2027, aligning with Fortum’s planned exit from all coal activities by the end of 2027.
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