Fortum’s sales were EUR 6.2 billion and comparable operating profit was EUR 1.7 billion. The number of personnel at the end of the year was about 10,400. The European and global economic situation and the historically high water reservoir levels in the Nordic countries affected the electricity market and burdened Fortum. We launched an efficiency programme in an effort to strengthen cash flow by over one billion euros in 2013–2014. In January 2013, we initiated a study of future options for the electricity distribution business.
Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions for society and deliver excellent value to our shareholders. The core of our strategy is our strong competence in CO2-free hydro and nuclear power and in efficient combined heat and power production. Our strengths also include our solid experience in operating in the energy markets. Sustainability is an integral part of Fortum’s strategy.
The global and European economic situation was weak, but development in Russia was steadier. The integration of Europe’s energy markets regressed due to the strengthening of national interests. The oversupply of emission allowances and low prices undermined the functioning of the EU’s emissions trading. The economic situation led to a decrease in electricity demand in Europe, but demand in the Nordic countries recovered slightly from the previous year. Demand growth was marginal also in Russia. Electricity market models raised questions in Europe and in Russia.
Fortum’s capital expenditures were EUR 1,558 million. Of the investments, EUR 568 million targeted Russia, EUR 492 million targeted Sweden, and EUR 338 million targeted Finland. The primary investments relating to growth and productivity were hydropower refurbishments, nuclear power capacity upgrades, and new CHP plants. Investments in CO2-free production were EUR 482 million.