Fortum's sales, profits rise in 2020

Finnish state majority-owned energy company Fortum increased its annual sales and profits in 2020 and suffered only moderately from the impact of the COVID-19 pandemic, reported Xinhua.

In 2020, Fortum's annual sales amounted to 49.02 billion euros, increasing dramatically from the 5.45 billion euros in the previous year, according to a company press release on Friday.

The comparable operating profit for the whole year of 2020 was 1.34 billion euros, while in 2019 it had been 1.19 billion euros. The comparable operating profit for the fourth quarter (Q4) of last year was 928 million euros, compared to the 398 million euros year on year.

The Q4 results of the Uniper segment significantly contributed to Fortum's comparable operating profit, noted the company. In 2020, Fortum became the majority owner in Uniper, a Germany-based energy company.

Markus Rauramo, Chief Executive Officer (CEO) of Fortum, said in the press release that Fortum suffered clearly less from the COVID-19 pandemic than many other sectors and companies. Market conditions in 2020 were impacted more by the wet hydrology in the Nordics that pushed power prices heavily down.

Rauramo also noted that while 2020 was a rough year for many energy commodities, the European gas and power demand was affected only mildly, with a three or four percent decrease.

The CEO said the current strategy of Fortum focuses on driving the clean energy transition and is aligned with the goals of the Paris Agreement, targeting carbon neutrality for the group by 2050.

Rauramo welcomed the progress in European hydrogen strategies during 2020. "The hydrogen economy also took several steps forward, with the European Commission and several member states presenting their hydrogen strategies," he said, adding that the role of hydrogen made from CO2-free power will play a key role in decarbonizing the European economy.

Looking forward to 2021, Rauramo said the focus of Fortum will be on strategy execution, further deepening the cooperation with Uniper, and delivering on the collaboration benefits identified thus far with Uniper.

Fortum is a Finnish state majority-owned energy company focusing on the Nordic and Baltic countries, Poland, Russia and India.