Home India Fortum’s new vision and strategic cornerstones; updated financial targets
Fortum’s new vision and strategic cornerstones; updated financial targets

Fortum’s new vision and strategic cornerstones; updated financial targets


Fortum’s strategy targets growth and continued profitability with a strong focus on clean energy, customers and shareholder value creation. The long-term financial target for return on capital employed (ROCE) is revised to at least 10%, while the target for comparable net debt to EBITDA, around 2.5 times, remains unchanged. Also the dividend policy remains unchanged.

The energy sector is changing fast, driven by climate change, urbanisation, more active customers, as well as new opportunities through digitalisation and fast development of energy-related technology – all global megatrends. The low energy prices, driven by depressed commodities and subsidised build-up of renewables as well as the low overall economic growth, have created a need for the energy industry transformation. At the same time, the energy sector must become the leader in climate change mitigation.

Fortum’s strategy has four cornerstones: (1) enhance productivity of the current fleet and drive industry transformation, (2) create sustainable solutions for growing cities and urban areas, (3) increase investments in solar and wind power, and (4) build new energy ventures.

“Our new vision – the forerunner in clean energy – ties all these themes together. Our strong net cash position provides us a unique opportunity to grow and take a proactive role in driving the industry transformation. We will invest in growth supported by our strong balance sheet to the extent our comparable net debt to EBITDA target enables us,” says Pekka Lundmark, President and CEO. “The target is to strengthen our position in the current home markets and wider Europe through consolidation. At the same time, we aim to utilise our know-how and competences to create new revenue streams based on other value drivers than the Nordic wholesale power price.”

“Having now decided our strategy, the immediate next step will be to align our organisation and operating model to ensure fast and efficient implementation,” Lundmark continues.


Anand Gupta Editor - EQ Int'l Media Network


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