Financial results

July - September

In the third quarter of 2012, Group sales were EUR 1,140 (1,144) million. The comparable operating profit totalled EUR 220 (297) million. Group operating profit totalled EUR 223 (314) million. Fortum's operating profit for the period was affected by non-recurring items, an IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production and nuclear fund adjustments amounting to EUR 3 (17) million (Note 4).

The share of profits from associates in the third quarter was EUR 7 (-2) million. The share of profits from Hafslund and TGC-1 are based on the companies' published second-quarter interim reports (Note 12).

Sales by division            
EUR million III/12 III/11 I-III/12 I-III/11 2011 LTM
Power 506 560 1,696 1,827 2,481 2,350
Heat 205 212 1,151 1,259 1,737 1,629
Russia 203 156 711 646 920 985
Distribution* 225 203 756 729 973 1,000
Electricity Sales* 119 139 501 695 900 706
Other 23 27 96 76 108 128
Netting of Nord Pool transactions -66 -99 -342 -615 -749 -476
Eliminations -75 -54 -244 -123 -209 -330
Total 1,140 1,144 4,325 4,494 6,161 5,992
* Part of the Electricity Solutions and Distribution Division
             
Comparable operating profit by division            
EUR million III/12 III/11 I-III/12 I-III/11 2011 LTM
Power 201 268 764 850 1,201 1,115
Heat -11 -14 173 182 278 269
Russia -12 -16 40 39 74 75
Distribution* 57 62 216 246 295 265
Electricity Sales* 9 4 29 25 27 31
Other -24 -7 -70 -48 -73 -95
Total 220 297 1,152 1,294 1,802 1,660
* Part of the Electricity Solutions and Distribution Division
             
Operating profit by division            
EUR million III/12 III/11 I-III/12 I-III/11 2011 LTM
Power 205 273 786 1,033 1,476 1,229
Heat -12 -10 221 280 380 321
Russia -12 -16 51 39 74 86
Distribution* 58 60 225 437 478 266
Electricity Sales* 11 6 33 9 3 27
Other -27 1 -74 25 -9 -108
Total 223 314 1,242 1,823 2,402 1,821
* Part of the Electricity Solutions and Distribution Division

January - September

In January-September, Group sales were EUR 4,325 (4,494) million. The comparable operating profit totalled EUR 1,152 (1,294) million. Group operating profit totalled EUR 1,242 (1,823) million. Fortum's operating profit for the period was affected by non-recurring items, an IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production and nuclear fund adjustments amounting to EUR 90 (529) million (Note 4).

Non-recurring items, mark-to-market effects and nuclear fund adjustments in January - September 2012 amounted to EUR 90 (529) million. Changes in fair values of derivatives hedging future cash flow accounted for EUR -8 (272) million. Non-recurring items totalled EUR 122 (275) million and were mainly related to the divestments of shares in power and heat operations (Note 4).

The share of profits of associates and joint ventures was EUR 26 (72) million. The decrease from last year was mainly due to the lower share of profits from Hafslund ASA, and TGC-1 as well as the share of profits from Fingrid Oyj, which was divested during Q2 2011 (Note 12).

The Group’s net financial expenses increased to EUR 231 (199) million. The increase is attributable to higher interest expenses, mainly due to higher SEK interest rates and to higher average net debt in 2012 than during the comparable period in 2011. Net financial expenses were also negatively affected by changes in the fair value of financial instruments of EUR 16 (2) million.

Profit before taxes was EUR 1,037 (1,696) million.

Taxes for the period totalled EUR 195 (278) million. The tax rate according to the income statement was 18.8 % (16.4 %). The tax rate, excluding mainly the impact of the share of profits of associated companies and joint ventures as well as non-taxable capital gains, was 21.2 % (20.8 %).

The profit for the period was EUR 842 (1,418) million. Fortum's earnings per share were EUR 0.91 (1.52), of which EUR 0.11 (0.49) per share relates to items affecting comparability; in 2011 the impact of the sale of the Fingrid shares was EUR 192 million.

Non-controlling (minority) interests amounted to EUR 36 (70) million. These are mainly attributable to Fortum Värme Holding AB, in which the city of Stockholm has a 50 % economic interest. The decrease compared to last year is mainly due to the minority's share, EUR 32 million, of the gain recognised in the first quarter 2011 from the divestment of Fortum Värme’s heat businesses outside the Stockholm area.