Fortum Oyj

We believe Fortum has a strong commitment to maintaining the 'BBB' rating. This has been evidenced by firm remedy measures, including large disposals, to support the group's credit profile. In line with the plan, Fortum closed the disposals of its district heating business in Joensuu and a stake of 80% in its Nordic wind portfolio in the first half 2020. The total consideration was €780 million. In January 2020, Fortum announced its intention to extend the strategic assessment, including potential disposals, to include district heating and cooling businesses in all Baltic countries, in Poland, and in Järvenpää, Finland. In August 2020, it closed the sale of Järvenpää district heating network for €375 million and a €290 million tax exempt capital

...Following the acquisition of 75% of Uniper--although without any direct control--Fortum is now one of Europe's largest power generators, with reinforced positions in the Nordics and Russia; but also a significantly higher carbon dioxide emitter. The transaction, completed in March 2020, provides Fortum with significant scale (combined 2019 EBITDA at 3.3 billion, of which 1.8 billion is from Fortum stand-alone) and geographic diversification. Fortum's generating capacity will be the third-largest among European integrated utilities, reaching about 190 terawatt hours (TWh). The combined group will have greater fleet optionality, thereby improving operating efficiency, but Fortum's carbon footprint will substantially increase since Uniper operates mainly coal and gas power plants (about 75% of combined installed capacity). In terms of power production, coal and gas exposure would be lower. In addition, Fortum will be exposed to the midstream business, which provides business line diversity...

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