Annual Report 2014 | Suomeksi |

Heat, Electricity Sales and Solutions

Heat, Electricity Sales and Solutions consists of combined heat and power (CHP) production as well as heat and electricity sales and development of customer-oriented solutions. The business operations are located in the Nordics, the Baltic countries, Poland and India. The segment also includes Fortum’s 50% holding in Fortum Värme, which is a joint venture and is accounted for using the equity method.

EUR million 2014 2013   Change
14/13
Sales 1,332 1,516 ‑12%
‑ heat sales 430 492 ‑13%
‑ power sales 783 900 ‑13%
‑ other sales 119 124 ‑4%
Operating profit 337 134 151%
Comparable operating profit 104 109 ‑5%
of which Electricity Sales 48 47 2%
Comparable EBITDA 204 211 ‑3%
Net assets (at period‑end) 2,112 2,295 ‑8%
Return on net assets, % 19.1 9.7 97%
Comparable return on net assets, % 8.7 8.7 0%
Capital expenditure and gross investments in shares 124 134 ‑7%
Number of employees 1,807 1,968 ‑8%

As of 2014, the former Heat Division and Electricity Sales and Solutions business area are reported as one segment. In addition, Fortum Värme, which earlier was consolidated as a subsidiary under the Heat Division, is treated as a joint venture and thus consolidated with the equity method. The effect of Fortum Värme is hence included in the share of profits in associates and joint ventures. In January-December 2014, this represented EUR 67 (73) million.

In 2014, heat sales volumes of Heat, Electricity Sales and Solutions amounted to 7.9 TWh (2013: 10.7). Power sales volumes from CHP production totalled 2.8 TWh (2013: 3.5). Despite the new capacity and lower fuel costs, heat and power sales volumes were lower, mainly due to the warmer weather during the first and third quarter of 2014 and to the divestments made in 2013 and 2014. The warm weather also burdened retail sales, especially during the first quarter of 2014.

Comparable operating profit was EUR 104 million (2013: 109). The result decreased, mainly due to the lower volumes and lower power prices, despite new capacity and lower fuel costs.

Operating profit totalled EUR 337 million (2013: 134) and was affected by sales gains totalling EUR 254 million (2013: 18).

At the end of December 2014, Fortum's customer base in Electricity Sales exceeded 1.3 million.

Heat sales by area
TWh 2014 2013 Change
14/13
Finland 3.2 5.4 ‑41%
Poland 3.4 4.1 ‑15%
Other countries 1.3 1.2 8%
Total 7.9 10.7 ‑26%
Power sales
TWh 2014 2013 Change
14/13
CHP 2.8 3.5 ‑20%
Electricity Sales 13.8 13.6 1%
Total 16.5 17.1 ‑4%
Heat, Electricity sales and Solutions segment's district heating
and industrial steam sales, TWh
Heat, Electricity Sales and Solutions
segment's district heating and
industrial steam sales by area, TWh
Electricity Sales in Heat, Electricity Sales and Solutions segment, TWh

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