FORTUM CORPORATION INSIDE INFORMATION 7 FEBRUARY 2023 AT 18:45 EET
Due to the increasingly complex operating environment and prolonged uncertainty
regarding Fortum's Russian operations, Fortum will record additional pre-tax
impairments of approximately EUR 990 million related to its Russia segment in
its fourth quarter 2022 results. The impairments will have no effect on the
Group's cash flow, comparable operating profit or comparable net profit.
The impairments include approximately EUR 550 million related to fixed assets
for Fortum's Russia segment. These will be recorded as ‘items affecting
comparability'. Further, impairments of approximately EUR 250 million related to
Fortum's ownership in TGC-1 and joint ventures will be recorded in the ‘share of
profits from associated companies and joint ventures'. The impairments include
also approximately EUR 190 million write downs in ‘other financial items - net'
mainly related to wind assets. Aforementioned impairments include the effect of
the change in the Russian rouble exchange rate also related to earlier
impairments since previous quarter.
The value of the Russian net assets after the impairments totals approximately
EUR 1.7 billion. The value is based on external valuations deducted with a
management risk adjustment to reflect prevailing market restrictions.
Already in its first-quarter 2022 results, Fortum recorded pre-tax impairments
related to the Russia segment. Total Russian impairments for the year 2022
amount to approximately EUR 1.7 billion, comprising approximately EUR 930
million in ‘items affecting comparability', approximately EUR 480 million in
‘share of profits from associated companies and joint ventures' and
approximately EUR 290 million in ‘other financial items - net'.
Following Russia's attack war on Ukraine, Fortum decided to pursue a controlled
exit from the Russian market with potential divestments of its Russian
operations as the preferred path. Completing the exit is likely to take further
time and there still are significant uncertainties - including regulatory
approvals - related to the ongoing divestment process.
Fortum publishes its Financial Statements Bulletin 2022 on 2 March 2023.
Fortum Corporation
Ingela Ulfves
Vice President, Investor relations and Financial Communications
Further information:
Ingela Ulfves, VP, Investor Relations and Financial Communications, tel.
+358 40 515 1531
Rauno Tiihonen, Manager, Investor Relations, tel. +358 10 453 6150
Carlo Beck, Manager, Investor Relations, tel. +49 172 751 2480
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