- Fortum’s adjusted operating profit for the second quarter was EUR 115 million, falling short of the estimated EUR 127.8 million.
- The company reported a comparable EBITDA of EUR 191 million, which did not meet the forecast of EUR 202.1 million.
- Operating profit came in at EUR 104 million, missing the estimate of EUR 137.5 million.
- The company faced challenges from low inflows due to modest spring floods, affecting Nordic hydro generation and rapidly decreasing reservoir surplus.
- The Generation segment’s result declined, affected by lower generation volumes and power prices.
- Hydro and nuclear output was down by 2.2 TWh from the second quarter of last year, primarily due to less hydro inflow and an extended outage at the Oskarshamn nuclear plant.
- Fortum’s achieved power price was nearly consistent with last year’s level, at EUR 48.1 per MWh, supported by a high hedge ratio and effective physical optimisation.
- The market analyst recommendations for Fortum involve 1 buy, 10 holds, and 11 sells.
A look at Fortum OYJ Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Fortum OYJ, a company that provides energy-related products and services, is poised for a promising long-term outlook based on Smartkarma Smart Scores. With a strong emphasis on dividends and growth, the company has received high scores in these areas. Additionally, Fortum showcases solid resilience and momentum, indicating a well-rounded performance across key factors. The company’s operations in electricity and heat generation, distribution, and sales, along with energy-related services, position it as a significant player in the industry.
Operating mainly in Northern Europe, Fortum OYJ‘s positive outlook, as reflected in its Smart Scores, underscores its robust fundamentals. With a focus on delivering value to its shareholders through dividends, coupled with an impressive growth trajectory, the company demonstrates a strategic approach towards long-term sustainability. Its ability to weather challenges and maintain momentum further enhances its investment appeal, making Fortum a compelling choice for investors seeking stability and growth within the energy sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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