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Research

Fortum: Revisions following the Uniper exit

By Juha KinnunenAnalyst
Fortum
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Our update relates to the restated comparison figures that exclude Uniper published by Fortum, based on which we revised the figures. At the same time, we made minor updates to our estimates, mainly related to electricity price developments. Although there were structural changes to the figures, the big picture hasn’t changed substantially. Fortum is a very cheap stock with the results of the next few years (2023e P/E 7x), which however aren’t sustainable. The most significant risks relate to the Russian business and the completion of the Uniper transaction. However, even before that there’s pressure on collateral requirements and liquidity.

Fortum is active in the energy sector. In addition to the provision of electricity, a number of technical solutions are offered in heat optimization as well as apps that are used to keep track of energy consumption. The company also provides charging stations for electric cars. The largest activity is found around the Nordic market. The company was founded in 1998 and is headquartered in Espoo.

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Key Estimate Figures13.10.2022

202122e23e
Revenue6,422.08,204.08,670.7
growth-%-86.9 %27.7 %5.7 %
EBIT (adj.)1,429.01,607.12,430.4
EBIT-% (adj.)22.3 %19.6 %28.0 %
EPS (adj.)-2.43-2.921.87
Dividend1.140.000.50
Dividend %4.2 %2.8 %
P/E (adj.)neg.neg.9.6
EV/EBITDA6.78.26.4

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