Fortum Corporation: Interim Report January-September 2004
Fortum Corporation STOCK EXCHANGE RELEASE
21 October 2004
Fortum Corporation
Interim Report January - September 2004
Fortum continues strong financial performance
- operating profit EUR 1,350 million
January-September in brief
- Operating profit EUR 1,350 million (+35%), incl. non-recurring
items EUR 124 million
- Earnings per share EUR 1.03 (+61%), exceeding the full year 2003
figure
- Net debt EUR 5,229 million (EUR -397 million since end of 2003),
gearing decreased to 73%
- Proposal to separate oil businesses through a share dividend and
a sale of shares
Key figures III/04 III/03 I- I- 2003 Last
III/04 III/03 12
month
s
(LTM)
Net sales, EUR million 2,837 2,527 8,490 8,555 11,39 11,32
2 7
Operating profit, EUR 345 239 1,350 1,000 1,420 1,770
million
- excluding non- 318 231 1,226 974 1,360 1,612
recurring items, EUR
million
Profit before taxes, EUR 289 185 1,151 811 1,184 1,524
million
Earnings per share, EUR 0.27 0.15 1.03 0.64 0.91 1.30
Shareholders equity per 8.18 7.30 7.55
share, EUR
Capital employed 12,652 12,773 12,70
(at end of period), EUR 4
million
Interest-bearing net 5,229 4,420 5,626
debt
(at end of period), EUR
million *)
Investments, EUR million 507 889 1,136 754
Net cash from operating 1,299 1,381 1,577
activities,
EUR million
Return on capital 14.5 10.6 11.4 14.2
employed, %
Return on shareholders 17.1 10.5 12.3 15.4
equity, % *)
Gearing, % *) 73 58 85
Average number of 13,112 13,594 13,343
employees
Average number of 849,823 845,836 846,831 848,5540
shares, 1,000s
*) The figures for the full year 2003 and for January-September
2004 include the impact of the redemption of the preference shares
worth EUR 1.2 billion issued by Fortum Capital Ltd.
Fortum's financial performance in January-September improved
significantly compared to last year. The operating profits of all
segments - except for Oil Retail - including and excluding non-
recurring items were higher than during the corresponding period
in 2003.
The developments of key market drivers were diverging. Although
the Nord Pool electricity price was 22% lower than a year ago, the
results of power businesses were significantly stronger. The good
results were due to operational efficiency: utilisation of the
flexible power production portfolio, successful hedging, good
availability at production units, a high-value oil product slate
as well as an improved cost structure.
The international oil refining reference margin was very strong,
66% higher than a year ago, boosting the results of Oil Refining.
In addition, the substantial increase in the price of crude oil
led to inventory gains of EUR 90 million.
The cash flow remained good although it did not reflect the strong
improvement in the operating profit. This was due to a slight
increase in working capital caused mainly by the increase in oil
prices. The balance sheet was strengthened compared to the end of
2003. At the end of the third quarter, net debt had decreased by
EUR 397 million and gearing decreased to 73%.
A proposal was made to separate the oil businesses through a share
dividend and a sale of shares in April 2005. Fortum strengthened
its position in the Russian electricity company, OAO Lenenergo.
Net sales and results
July - September
During the third quarter, the Nord Pool electricity price was
slightly lower than during the third quarter of 2003 whereas the
strong international oil refining reference margin nearly doubled
compared to the corresponding period in 2003. The price of crude
oil continued to increase.
Group net sales stood at EUR 2,837 (EUR 2,527 million in July-
September 2003). The increase was mainly attributable to higher
prices for oil products and an increase in the power volumes.
Group operating profit totalled EUR 345 (239) million. Operating
profit excluding non-recurring items stood at EUR 318 (231)
million. The net amount of non-recurring items was EUR 27 (8)
million, mainly consisting of inventory gains arising from the
increase in the price of crude oil. The results for the power and
heat businesses improved despite lower electricity prices. Typical
for the summer period, the third quarter was weaker than the first
and second quarters of 2004. The results for Markets decreased
somewhat because of lower sales margins and volumes. The high
refining margin had a positive impact on the results of Oil
Refining.
January - September
Group net sales stood at EUR 8,490 (8,555) million. Higher prices
for oil products had an increasing impact, whereas the Group's
exit from gas trading and a weakened US dollar decreased the net
sales.
Group operating profit totalled EUR 1,350 (1,000) million.
Operating profit excluding non-recurring items was EUR 1,226 (974)
million. The net amount of non-recurring items was EUR 124 (26)
million, including a one-time compensation of EUR 29 million from
parties in the new nuclear power unit relating to the existing
nuclear infrastructure, and inventory gains of EUR 90 million
(losses of EUR 0.4 million) resulting from the increase in the
price of crude oil.
The results for Power Generation were up on the corresponding
period last year, despite lower market prices for electricity.
This was mainly due to Fortum's flexible production portfolio,
successful hedging and internal efficiency improvements.
The results for the Heat segment improved because of a rise in
Fortum Värme's results. This was mainly due to a better fuel mix
and good power plant availability.
The results for Distribution, which is a regulated business,
improved slightly over previous year's level thanks to internal
efficiency improvement.
Markets experienced an improvement in its results compared to last
year, despite the decrease in sales prices and somewhat lower
volumes. The main enablers were better risk management and
improved business processes.
The results for Oil Refining reached a record high level due to
strong oil refining margins, higher volumes and a considerable
amount of inventory gains. However, a weaker US dollar than a year
ago had a negative effect on the results. The results were further
boosted by a favourable product slate, competitive feedstocks and
good availability at the refineries.
The results for the Oil Retail segment were at a lower level than
during the corresponding period last year. The sales volumes of
traffic fuels increased slightly, whereas the corresponding
margins decreased somewhat.
The Shipping and other Oil segment enjoyed higher freight rates,
especially for crude oil. However, a weaker US dollar than a year
ago had a negative impact on the results. The contribution from
SeverTEK had a positive impact on the result.
The Group's profit before taxes was EUR 1,151 (811) million.
The Group's net financial expenses were EUR 199 (189) million.
This includes the interest cost attributable to the debt assumed
when redeeming the preference shares issued by Fortum Capital Ltd
as well as approximately EUR 10 million representing the net
present value of the interest rate differential relating to the
prepayment of the private placement bonds issued in the United
States in 1992.
Minority interests accounted for EUR 15 (57) million. The decrease
is mainly due to the redemption of Fortum Capital's preference
shares, accounted for as minority interests before the redemption.
The figure for 2004 is mainly attributable to Fortum Värme
Holding, in which the City of Stockholm has a 50% economic
interest.
Taxes for the period totalled EUR 259 (212) million. The tax rate
according to the income statement was 22.5% (26.1%). Taxes for the
period include a decrease in deferred tax liabilities of EUR 43
million due to the change in the Finnish income tax rate from 29%
to 26% which takes effect from the beginning of the 2005 tax year.
The tax rate would have been 26.2% excluding the above-mentioned
decrease.
Net profit for the period was EUR 877 (542) million. Earnings per
share were EUR 1.03 (0.64). Return on capital employed was 14.5%
(10.6%) and return on shareholders' equity was 17.1% (10.5%).
Reporting structure
In order to improve the transparency of its financial reporting,
Fortum has adopted a new reporting structure in 2004. The number
of reporting segments has been increased from four to seven. The
new segments include the following business units (names of the
business units in brackets after the segment name): Power
Generation (Generation, Portfolio Management and Trading,
Service); Heat (Heat, Värme); Distribution (Distribution); Markets
(Markets); Oil Refining (Oil Refining, Components); Oil Retail
(Oil Retail); Shipping and other Oil (Shipping, other oil
operations including SeverTEK). In addition, the segment Other
includes for example Group administration and shared service
functions.
POWER AND HEAT SEGMENTS
Fortum's power and heat businesses are divided into four reporting
segments. Power is generated in Fortum's own and partly-owned
power plants by the Power Generation segment and in combined heat
and power (CHP) plants by the Heat segment. Power Generation sells
the electricity it generates through the Nordic electricity
exchange, Nord Pool. The Markets segment buys its electricity
through Nord Pool and sells the electricity to private and
business customers. Heat sells steam and district heat mainly to
industrial and municipal customers as well as to real estate
companies, and it sells the power it produces directly to end-
customers and to Nord Pool. Fortum's distribution and regional
network transmissions are reported in the Distribution segment.
Market conditions
According to preliminary statistics, the Nordic countries consumed
287 (283) TWh of electricity during January-September, which was
2% more than the consumption during the corresponding period last
year.
During the third quarter, the average spot price for electricity
on the Nordic power exchange, Nord Pool, was EUR 29.9 (31.0) per
megawatt-hour. The price was about 3% lower than the corresponding
figure in 2003 and 1% higher compared to the second quarter of
2004. During January-September, the average spot price for
electricity was EUR 29.4 (37.6) or 22% lower than the
corresponding figure in 2003.
Very high inflows in the beginning of July lowered the spot price
and ended the increasing trend in the forward prices. The spot
price recovered by August but the high precipitation, resulting in
significantly higher than normal inflows in September, decreased
the spot price again during the latter part of September.
Due to the high inflows the water reservoir deficit decreased by
10 TWh during the third quarter. At the beginning of October, the
water reservoirs were about 6 TWh below average but 10 TWh above
the corresponding level for 2003.
Total power and heat generation figures
Fortum's power generation in the Nordic countries during January-
September was 38.8 (37.1) TWh, 14% (13%) of Nordic electricity
consumption.
Fortum's total power and heat generation figures are presented
below. In addition, the segment reviews include the respective
figures by segment.
Fortum's total power III/04 III/03 I- I- 2003 LTM
and heat generation, III/04 III/03
TWh
Power generation 11.5 10.7 39.5 38.9 53.2 53.8
Heat generation 3.4 3.5 17.4 18.3 25.9 25.0
Fortum's own power III/04 III/03 I- I- 2003 LTM
generation by source, III/04 III/03
TWh,
total in the Nordic
countries
Hydropower 4.4 3.5 13.0 11.9 16.9 18.0
Nuclear power 5.2 4.8 18.7 17.5 23.8 25.0
Thermal power 1.8 2.1 7.1 7.7 10.5 9.9
Total 11.4 10.4 38.8 37.1 51.2 52.9
Share of own III/04 III/03 I- I- 2003 LTM
production, %, III/04 III/03
total in the Nordic
countries
Hydropower 38 34 34 32 33 34
Nuclear power 46 46 48 47 46 47
Thermal power 16 20 18 21 21 19
Total 100 100 100 100 100 100
Total electricity and heat sales figures
Fortum's total electricity sales amounted to 44.7 (44.7) TWh.
Sales volumes in the Nordic countries were at 43.5 (42.7) TWh,
representing approximately 15% (15%) of Nordic electricity
consumption during January-September. Heat sales in the Nordic
countries amounted to 13.9 (13.9) TWh and in other countries to
2.4 (2.8) TWh.
The average price of electricity sold by Fortum in the Nordic
countries during the third quarter was 5% higher than the
corresponding figure last year, and 3% lower compared to the
second quarter of 2004. In January-September, the average price of
electricity sold by Fortum in the Nordic countries was 3% lower
than the corresponding figure last year.
The segments sell their electricity to Nord Pool or external
customers and purchase from Nord Pool or other external sources.
In the table below, Fortum's Nord Pool transactions are calculated
as a net amount of hourly sales and purchases on Group level.
Fortum's total III/04 III/03 I- I- 2003 LTM
electricity and heat III/04 III/03
sales, EUR million
Electricity sales 427 380 1,439 1,474 2,038 2,003
Heat sales 114 107 558 540 775 793
Fortum's total III/04 III/03 I- I- 2003 LTM
electricity sales by III/04 III/03
area, TWh
Sweden 5.5 5.5 19.5 20.7 28.3 27.1
Finland 7.0 6.3 22.6 21.4 29.1 30.3
Other countries 0.7 0.7 2.6 2.6 3.6 3.6
Total 13.2 12.5 44.7 44.7 61.0 61.0
Fortum's total heat III/04 III/03 I-III/04 I-III/ 2003 LTM
sales by area, TWh 03
Sweden 0.8 0.8 6.4 6.5 9.5 9.4
Finland 1.7 1.6 7.4 7.4 10.3 10.3
Other countries 0.6 0.6 2.5 2.8 3.9 3.6
Total 3.1 3.0 16.3 16.7 23.7 23.3
SEGMENT REVIEWS - POWER AND HEAT
Power Generation
The business area comprises power generation and sales in the
Nordic countries and the provision of operation and maintenance
services in the Nordic area and selected international markets.
EUR million III/04 III/03 I- I- 2003 LTM
III/04 III/03
Net sales 453 524 1,505 2,057 2,681 2,129
- electricity sales 357 327 1,208 1,384 1,871 1,695
- other sales 96 197 297 673 810 434
Operating profit 124 82 490 410 603 683
- excluding non- 126 79 470 408 599 661
recurring items
Net assets (at end of 6,236 6,391 6,391
period)
Return on net assets, 10.5 8.6 9.5 10.9
%
The segment's power generation during the third quarter amounted
to 10.9 (9.9) TWh in the Nordic countries.
In January-September, the segment's power generation in the Nordic
countries was 35.7 (34.1) TWh, of which about 13.0 (11.9) TWh or
37% (35%) was hydropower-based, 18.7 (17.5) TWh or 52% (51%)
nuclear power-based and 4.0 (4.7) TWh or 11% (14%) thermal power-
based.
Power generation by III/04 III/03 I- I- 2003 LTM
area, TWh III/04 III/03
Sweden 5.3 5.0 18.1 17.7 24.6 25.0
Finland 5.6 4.9 17.6 16.4 22.2 23.4
Other countries 0.1 0.3 0.7 1.8 2.0 0.9
Total 11.0 10.2 36.4 35.9 48.8 49.3
The yearly revisions of power plants were carried out according to
plan.
In July, Fortum agreed on the acquisition of additional shares in
the Russian OAO Lenenergo. Russian competition authorities
approved the share transaction in August. Fortum's holding in the
company's share capital is 30.7%, and its share of voting rights
is 29.6%.
Heat
The business area comprises heat generation and sales in the
Nordic countries and other parts of the Baltic Rim. Fortum is the
leading heat producer in the region. The segment also generates
power in the combined heat and power plants (CHP) and sells it to
end-customers mainly by long-term contracts as well as to Nord
Pool. In Sweden, Fortum owns the company AB Fortum Värme samägt
med Stockholms stad, in which the City of Stockholm has a 50%
economic interest.
EUR million III/04 III/03 I- I- 2003 LTM
III/04 III/03
Net sales 145 132 701 672 964 993
- heat sales 108 100 536 501 728 763
- electricity sales 20 16 110 124 167 153
- other sales 17 16 55 47 69 77
Operating profit 8 -6 142 93 173 222
- excluding non- 8 -2 142 97 176 225
recurring items
Net assets (at end of 2,424 2,342 2,466
period)
Return on net assets, 7.8 5.3 7.3 9.2
%
The segment's heat sales during the third quarter amounted to 2.6
(2.6) TWh, most of which is generated in the Nordic countries. In
January-September, heat sales totalled 14.9 (14.6) TWh. In the
heat business, the third quarter is usually the weakest of the
year.
The inauguration of Fortum's Nynäshamn combined heat and power
plant in Sweden took place in September. The plant uses biomass
fuels to produce process steam and district heat.
In Sweden, the new waste incineration boiler in the Högdalen
combined heat and power plant was tuned to be taken into operation
during the autumn. The new district heating distribution
connection in Akalla-Upplands Väsby was taken into operation.
Heat sales by area, III/04 III/03 I-III I-III 2003 LTM
TWh /04 /03
Sweden 0.8 0.8 6.4 6.5 9.5 9.4
Finland 1.7 1.6 7.4 7.4 10.3 10.3
Other countries 0.1 0.2 1.1 0.7 1.3 1.7
Total 2.6 2.6 14.9 14.6 21.1 21.4
Electricity sales, III/04 III/03 I-III/ I-III/ 2003 LTM
TWh 04 03
Total 0.6 0.5 3.3 3.1 4.5 4.7
Distribution
Fortum owns and operates distribution and regional networks and
distributes electricity to a total of 1.4 million customers in
Sweden, Finland, Norway and Estonia.
EUR million III/04 III/03 I-III I-III 2003 LTM
/04 /03
Net sales 150 143 513 502 688 699
- distribution 122 116 427 410 569 586
network transmission
- regional network 19 21 64 69 88 83
transmission
- other sales 9 6 22 23 31 30
Operating profit 55 47 196 189 247 254
- excluding non- 54 48 195 169 227 253
recurring items
Net assets (at end of 3 088 3 089 3 129
period)
Return on net assets, 8,4 8,1 7,9 8,2
%
During January-September, the volume of distribution and regional
network transmissions totalled 15.8 (15.4) TWh and 13.9 (15.4)
TWh, respectively.
Electricity transmissions via the regional distribution network to
customers outside the Group totalled 11.6 (11.5) TWh in Sweden and
2.3 (3.9) TWh in Finland.
Further improvements aiming at better invoicing transparency and
enhanced customer service were developed. One example is the
automated meter-reading system that enables electricity meters to
be read remotely and allows customers to be invoiced according to
their actual electricity consumption. A number of pilot projects
were started in Sweden and Finland to test the system.
The big investment programme to reduce the risks of outages
continued in western Sweden. Within a five-year-period, the risk
will be minimised by isolating cables and installing underground
cables.
In June 2004, the Energy Market Authority in Finland published its
guidelines for transmission and distribution pricing principles.
The new regulation will enter into force in January 2005. The
Authority will make company-specific decisions on the parameters
being used to access the allowable return in accordance with the
new electricity market legislation, which is expected to take
effect in December 2004.
In Sweden, the Energy Authority is developing and implementing a
new model for monitoring distribution prices. Further details are
expected to be published later this year.
Volume of distributed III/04 III/03 I-III I-III 2003 LTM
electricity by area, /04 /03
TWh
Sweden 2.6 2.5 9.7 10.3 14.2 13.6
Finland 1.2 1.1 4.4 4.4 6.2 6.2
Norway 0.4 0.3 1.6 0.6 1.3 2.3
Other countries 0.0 0.1 0.1 0.1 0.2 0.2
Total 4.2 4.0 15.8 15.4 21.9 22.3
Number of electricity 30.9.2004 30.9.2003 2003
distribution customers by
area, 1,000s
Sweden 860 850 855
Finland 405 395 400
Other countries 115 115 115
Total 1,380 1,360 1,370
Markets
The Markets segment focuses on the retail sale of electricity to a
total of 1.1 million private and business customers as well as to
other electricity retailers in Sweden, Finland and Norway. The
Markets segment buys its electricity through Nord Pool.
EUR million III/04 III/03 I-III I-III 2003 LTM
/04 /03
Net sales 287 322 1,009 1,212 1,634 1,431
Operating profit 11 13 26 18 35 43
- excluding non- 11 13 26 18 35 43
recurring items
Net assets (at end of 139 57 23
period)
Return on net assets, 28.0 32.7 55.2 38.9
%
During the third quarter, average retail electricity prices on the
Nordic market were lower than during the corresponding period the
previous year. In January-September, the retail prices decreased
slightly. In Norway, due to a different retail contract structure,
the electricity retail prices follow the Nord Pool market prices
more rapidly than in Sweden and Finland.
In July-September, the segment's electricity sales totalled 9.2
(10.1) TWh with sales for January-September standing at 31.6
(34.6) TWh. The decline was mainly due to lower industrial volumes
and a warmer winter than the year before.
Fortum's electricity retail prices decreased during the third
quarter as well as during January-September compared to the
corresponding period last year.
Fortum continued to launch new products on the Nordic market. Post-
debiting for electricity customers will be implemented starting
this autumn. The possibility to use self-meter-reading will also
be expanded during the autumn.
During January-September, competition on the Nordic electricity
market intensified. Also Fortum's sales activity level increased.
The number of private customers switching suppliers increased. The
activity level has traditionally been higher in Norway than in
other Nordic countries, but now the level in Finland and Sweden is
increasing. The number of customers choosing fixed-priced
contracts or individual supply solutions increased.
OIL SEGMENTS
Fortum's oil operations are divided into three reporting segments.
Oil Refining manufactures and sells gasolines, diesel fuels, light
and heavy fuel oils, aviation fuels, base oils, lubricants,
gasoline components and LPG. Oil Retail operates an extensive
retail sales network and has direct sales to private and business
customers. The Shipping and other Oil segment has a tanker fleet
for crude oil and product transports, and includes oil production.
Market conditions
During the third quarter, the international refining margin in
north-western Europe (Brent Complex) averaged USD 4.9 (2.7) /bbl.
During January-September, the international refining margin was
significantly higher than during the corresponding period last
year. The reference margin used by Fortum averaged USD 4.8 (2.9)
/bbl. Fortums premium margin continued to average USD 2/bbl
higher than the international reference margin.
Crude oil prices remained high throughout the period under review.
In the third quarter, the Brent crude oil averaged USD 41.5 (28.4)
/bbl. In January-September, the average price was USD 36.4 (28.6)
/bbl. The Brent price continued at over USD 40/bbl throughout
September. At the end of September, Brent crude was about USD
47/bbl. In January- September, inventory gains were EUR 90 million
(losses of EUR 0.4 million).
The refining margins and shipping freights are priced in U.S.
dollars and therefore the weakening of this currency will have an
impact on the profitability of the Oil Refining and the Shipping
and other Oil segments.
SEGMENT REVIEWS - OIL
Oil Refining
The activities of Oil Refining cover the refining of oil and
selling of oil products. The main products are traffic fuels and
heating oils. Fortum is the leading producer of clean traffic
fuels in the Nordic area.
EUR million III/04 III/03 I-III I-III 2003 LTM
/04 /03
Net sales 1,641 1,349 4,579 4,311 5,693 5,961
Operating profit 131 89 411 224 281 468
- excluding non- 100 75 315 224 267 358
recurring items*)
Net assets (at end 1,199 1,052 1,003
of period)
Return on net 49.6 27.4 26.2 42.8
assets, %
*) non-recurring items are mainly inventory gains and losses
Fortum refined a total of 10.1 (9.7) million tonnes of crude oil
and other feedstocks. In Finland, oil product sales totalled about
6.2 (5.8) million tonnes. Exports accounted for a total of 3.8
(3.9) million tonnes.
Work on the EUR 500 million investment to increase the sulphur-
free diesel production capacity of the Porvoo refinery continued
as planned, and the work on the foundations for the new production
line started in August. The capital expenditure in 2004 will
amount to slightly more than EUR 100 million. The production line
will be taken into use at the end of 2006.
In May, Fortum initialised the manufacturing of ETBE (ethyl
tertiary butyl ether), containing bioethanol, at the Porvoo
refinery, to replace MTBE.
Deliveries of oil III/04 III/03 I-III I-III 2003 LTM
products produced by /04 /03
Fortum by product
group (1,000 t)
Gasoline 1,108 1,075 3,250 3,135 4,434 4,549
Diesel 959 971 2,931 2,876 3,886 3,941
Aviation fuel 172 159 494 410 611 695
Light fuel oil 316 362 1,054 1,081 1,474 1,447
Heavy fuel oil 251 269 909 951 1,314 1,272
Other 499 488 1,384 1,276 1,672 1,780
Total 3,305 3,324 10,022 9,729 13,391 13,684
Deliveries of oil III/04 III/03 I-III I-III 2003 LTM
products produced by /04 /03
Fortum by area
(1,000 t)
Finland 2,136 2,002 6,199 5,791 7,889 8,297
Other Nordic 528 503 1,593 1,470 1,921 2,044
countries
Baltic countries and 24 33 82 62 62 82
Russia
USA and Canada 254 278 949 795 1,252 1,406
Other countries 363 508 1,199 1,611 2,267 1,855
Total 3,305 3,324 10,022 9,729 13,391 13,684
Oil Retail
Oil Retail has a network of service stations and other retail
sales outlets both in Finland and in other countries in the
Baltic Rim. The total number of outlets exceeds 1,000.
EUR million III/04 III/03 I-III I-III 2003 LTM
/04 /03
Net sales 666 543 1,763 1,650 2,203 2,316
Operating profit 15 21 41 46 44 39
- excluding non- 16 21 36 45 53 44
recurring items
Net assets (at end of 328 329 329
period)
Return on net assets, 18.0 19.4 13.8 12.6
%
During the third quarter, retail sales of the main oil products
totalled 1,025 (972) thousand cubic metres, of which traffic fuels
accounted for 712 (655) thousand cubic metres.
During January-September, retail sales of the main oil products
totalled 2,922 (2,880) thousand cubic metres, of which traffic
fuels accounted for 1,957 (1,838) thousand cubic metres.
The number of oil retail outlets at the end of September was 885
(892) in Finland and 169 (152) in other countries in the Baltic
Rim.
Shipping and other Oil
Shipping operates a tanker fleet for crude oil and product
transports. About 50% of the volumes carried are for third-party
customers. The focus is on the Baltic Sea, the North Sea and the
North Atlantic. Total capacity is about 1 million dead weight
tonnes. In Russia, Fortum owns an oil field jointly with the
Russian company, Lukoil.
EUR million III/04 III/03 I-III I-III 2003 LTM
/04 /03
Net sales 69 62 248 243 308 313
Operating profit 16 9 83 55 79 107
- excluding non- 16 8 79 57 69 91
recurring items
Net assets (at end 184 150 133
of period)
Return on net 69.5 52.0 56.7 68.0
assets, %
During the third quarter, deliveries by Shipping were 9.9 (9.9)
million tonnes and in January-September 30.2 (30.3) million
tonnes.
The third quarter freights were at a satisfactory level and higher
than during the corresponding period last year. The freight rates
picked up significantly towards the end of the period under
review. In January-September, the utilisation rate for Fortum's
crude and oil product fleet was high.
During the third quarter, Fortum decided to time-charter two
Panamax-sized tankers for gasoline exports to North America. The
vessels will be built by a joint venture formed by Fortum and
Concordia Maritime and will be completed in 2006 and 2007.
Moreover, four product tankers are currently under construction.
The crude oil tanker Palva was converted into a double-hull vessel
and its sister ship Tervi is currently undergoing a similar
modification.
In total, Fortum owns nine tankers and 20 are time-chartered.
Eight tankers carry crude oil and 21 carry a range of oil
products.
In January-September, the average oil production of SeverTEK in
Russia totalled approximately 26,400 barrels per day (of which
Fortum's share was 50%). Further increase in the production is
subject to the availability of the regional pipeline capacity.
Investments and divestments
Investments in fixed assets in January-September totalled EUR 507
(889) million.
Work on the EUR 500 million investment to increase the sulphur-
free diesel production capacity of the Porvoo refinery continued
as planned. The estimated cost for 2004 is somewhat above EUR 100
million. The investment is expected to be completed by the end of
2006.
Fortum will participate in the new, fifth nuclear power plant unit
in Finland with a share of approximately 25%. Thus Fortum's
investment as an equity share will be EUR 180 million during 2004-
2009, entitling it to approximately 400 MW of the plant's
capacity. During the first quarter, Fortum also provided a
shareholders' loan of EUR 45 million.
The final approval for the purchase of additional shares in the
Russian power company OAO Lenenergo, agreed in July, was received
from the Russian competition authorities in August. As a result of
the deal, Fortums holding in the companys share capital
increased to 30.7% and its share of voting rights to 29.6%.
Fortum's total investment in Lenenergo shares is approximately EUR
150 million.
Financing
Fortum's net debt decreased by EUR 397 million and stood at EUR
5,229 million (EUR 5,626 million at year end), giving a gearing
ratio of 73% (85% at year end).
The Group's net financing expenses were EUR 199 (189) million. The
amount includes the interest cost attributable to the debt assumed
when redeeming the preference shares issued by Fortum Capital Ltd
as well as approximately EUR 10 million representing the net
present value of the interest rate differential relating to the
prepayment of the private placement bonds issued in the United
States in 1992.
Moody's credit rating was upgraded to Baa1 (stable) on 13 February
2004. Standard & Poor's long-term credit rating for Fortum
Corporation continued at BBB+ (stable).
Separation of oil businesses
Fortum announced in September its plan to implement the separation
of Fortum Oil Oy in April 2005 through a distribution of Fortum
Oil shares as a dividend to the shareholders of Fortum Corporation
and a marketed offering of the remaining shares to investors. This
will enable Fortum Oil to simultaneously seek a listing of its
shares. The dividend distribution is subject to an approval by the
Annual General Meeting of Fortum in spring 2005.
The proposal to distribute Fortum Oil shares as a dividend has
been facilitated by Fortum's very strong operating performance in
both the Oil and Power and Heat businesses over the last 12
months. It is designed to allow both Fortum Corporation and Fortum
Oil to maintain their financial strength without raising
significant new capital from the markets. Fortum Oil will be
capitalised with approximately EUR 1 billion of debt including
approximately EUR 130 million of shipping leases.
Approximately 85% of Fortum Oil shares are proposed to be
distributed as a dividend, making the Finnish State a direct
majority shareholder in Fortum Oil, which is in line with the
Parliamentary decision adopted in 2003. The remaining
approximately 15% of the shares are expected to be sold to
investors, subject to market conditions. Following the dividend
distribution and the proposed sale of shares, Fortum Corporation
does not intend to continue as a shareholder in Fortum Oil.
Shares and share capital
Based on the share option schemes, a total of 981,004 Fortum
shares were entered into the trade register on 12 February 2004,
and a total of 448,415 Fortum shares were entered into the trade
register on 1 July 2004. After these increases, Fortum
Corporation's share capital is EUR 2,890,890,439.60, and the total
number of shares is 850,261,894.
A total of 82,070 shares were subscribed for between 2 July and 30
September 2004, based on the share warrants relating to Fortum
Corporations 1999 bond loan with warrants to the employees
(Fortum Corp -99 warrant FUM1VEW199). According to the terms of
subscription, the subscription price is EUR 3.63 per share. The
corresponding increase in share capital has not been entered in
the trade register.
A total of 1,025,000 shares were subscribed for between 2 July and
30 September 2004, based on Fortum Corporations 1999 management
stock option scheme (Fortum Corp. warrant 2/99 FUM1VEW299).
According to the terms of subscription, the subscription price is
EUR 5.61 per share. The corresponding increase in share capital
has not been entered in the trade register.
The trading of the share options 2002A for key employees (Fortum
Corp. -02A warrant FUM1VEW102) commenced on the main list of the
Helsinki Stock Exchange on 1 October 2004. The total number of the
options to be listed is 10,767,000. Each option gives the right to
subscribe for one Fortum Corporation share with a nominal value of
EUR 3.40 between 1 October 2004 and 1 May 2007. The share capital
may be increased by a maximum of EUR 36,607,800. The subscription
price for shares on the basis on these options is EUR 4.74 at the
start of listing.
Currently, the Board of Directors has no unused authorisations
from the General Meeting of shareholders to issue convertible
loans or bonds with warrants, issue new shares or acquire the
company's own shares.
Group personnel
The average number of employees in the Group during the period
from January to September was 13,112 (13,594). The number of
employees at the end of the period was 12,726 (13,201). The
reduction is mainly due to divestments.
Outlook
The key market drivers influencing Fortum's performance are the
market price of electricity and the international oil refining
margin. Other important market drivers are the price of crude oil,
and the exchange rates of the US dollar and the Swedish krona.
Starting in 2005, emissions trading is likely to become a new key
market driver.
During the past five years, the volume of Fortum's CO2-free power
generation has increased from 30 TWh to 41 TWh. Its share was 78%
of Fortum's power generation in 2003. With this production
portfolio, Fortum is in a good position with regard to the
possible impacts of emissions trading.
According to general market information, electricity consumption
in the Nordic countries is predicted to increase by about 1% a
year over the next few years. During the third quarter, the
average spot price for electricity was EUR 29.9 (31.0) per
megawatt-hour (MWh) on the Nordic electricity market. At the
beginning of October, the Nordic water reservoirs were about 6 TWh
below the average, but 10 TWh above the corresponding level for
2003. During the first part of October, the spot price has been at
the level of EUR 27 per MWh while the electricity price in the
forward market for the remainder of 2004, full year of 2005 and
full year 2006 have been in the range of EUR 30 - 31 per MWh and
EUR 30 - 32 per MWh and EUR 28 -30 per MWh, respectively.
The oil market fundamentals are developing according to Fortum's
assumptions: the consumption of clean traffic fuels is increasing
and the demand for heavy fuel oil is decreasing, making the
complex refineries even more competitive. In addition, Fortums
position along the new export routes for Russian crude oil gives
it a clear advantage. These developments are in line with Fortum's
profitability assumptions for the ongoing Porvoo refinery upgrade
investment and provide a good starting point for the future
independent oil company.
The oil refining reference margin in north-western Europe (Brent
Complex) averaged USD 4.9 (2.7) /bbl during the third quarter.
During the first half of October, the reference margin has
averaged USD 4.2/bbl. Fortums premium margin is expected to
remain at the strong levels of previous years. The next major
maintenance shutdown at the Porvoo refinery is planned to take
place in the fall of 2005.
The average price for Brent crude oil was USD 41.5 (28.4)/bbl
during the third quarter. During the first half of October 2004,
the price has been averaging USD 49.1/bbl while the International
Petroleum Exchanges Brent futures for the remainder of 2004 and
the first quarter of 2005 have been averaging USD 48.4/bbl and USD
46.2/bbl, respectively. The price of crude oil has an impact on
the results of Oil Refining through inventory gains and losses.
Tanker freight futures indicate that third-quarter rate levels
will increase during the fourth quarter and in the beginning of
2005. Due to demand for ice-classed tonnage, the winter season is
usually most profitable for Fortum Shipping.
The refining margins and shipping freights are exposed to USD
exchange rate volatility and therefore a weakened US dollar will
have a negative impact on the profitability of the oil business.
However, this impact is mitigated because of the forward hedging
policy of the estimated US dollar sales margins.
During January-September, the euro exchange rates against the US
dollar and the Swedish krona were on average 1.225 (1.113) and
9.157 (9.168), respectively. At the end of September, the exchange
rates were 1.241 (1.165) and 9.059 (8.963), respectively.
In September, it was announced that the Fortum Oil separation is
planned to be implemented in April 2005 through a share dividend
and a sale of shares. The dividend distribution is subject to an
approval by the Annual General Meeting of Fortum in spring 2005.
The first and last quarter of the year are usually the strongest
quarters for the continuous operations of the power and heat
businesses. The electricity prices in the forward market for the
remainder of the year are somewhat lower than the corresponding
forward prices for the remainder of 2003 in October last year.
Fortum has hedged approximately 70% of its electricity sales for
the next 12 months. The hedge ratio for the calendar year 2005 is
approximately 60%, the average price being approximately at the
level achieved during the first 9 months in 2004.
Fortum's performance in January-September has been very strong.
Given the current market fundamentals, the company's hedging
positions as well as the operational efficiency of both the power
and heat and the oil businesses, 2004 is set to become a very
satisfactory year for Fortum. This provides a good platform for
the two independent companies after the separation of the oil
businesses.
Espoo, 21 October 2004
Fortum Corporation
Board of Directors
The figures have not been audited.
Fortum will adopt the International Financial Reporting Standards
(IFRS/IAS) as of 2005.
Fortum's financial reporting in 2005:
The 2004 Financial Statements will be published on 3 February 2005
Interim Reports
The report for January-March will be released on 3 May 2005
The report for January-June on 19 July 2005
The report for January-September on 20 October 2005
Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications
Further information:
Mikael Lilius, President and CEO, tel. +358 10 452 9100
Juha Laaksonen, CFO, tel. +358 10 452 4519
Distribution:
Helsinki Exchanges
Key media
FORTUM GROUP
JANUARY-SEPTEMBER 2004
Interim financial statements are unaudited
CONSOLIDATED INCOME STATEMENT
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last
twelve
months
Net sales 2 837 2 527 8 490 8 555 11 392 11 327
Share of profits of associated
companies 24 9 51 29 41 63
Other operating income 16 19 98 95 151 154
Materials and services -2 107 -1 883 -5 860 -6 264 -8 054 -7 650
Personnel expenses -158 -145 -511 -499 -654 -666
Depreciation, amortisation and
write-downs -120 -128 -372 -395 -538 -515 0
Other operating expenses -147 -160 -546 -521 -918 -943
Operating profit 345 239 1 350 1 000 1 420 1 770
Financial income and expenses -57 -54 -199 -189 -236 -246
Profit before taxes 288 185 1 151 811 1 184 1 524
Income taxes -65 -45 -259 -212 -325 -372
Minority interests 5 -10 -15 -57 -90 -48
Net profit for the period 228 130 877 542 769 1 104
Earnings per share, EUR 0.27 0.15 1.03 0.64 0.91 1.30
Fully diluted earnings per share, EUR 0.26 0.15 1.01 0.63 0.90
Average number of shares, 1,000 shares 849 823 845 836 846 831 848 540
Diluted adjusted average number of
shares, 1000 shares 870 806 857 249 858 732
CONSOLIDATED BALANCE SHEET
MEUR Sep 30 Sep 30 Dec 31
2004 2003 2330
ASSETS
Fixed assets and other long-term
investments
Intangible assets 112 151 146
Property, plant and equipment 11 681 11 681 11 632
Other long-term investments 1 839 1 714 1 762
Other interest-bearing long-term
investments 716 643 632
Total 14 348 14 189 14 172
Current assets
Inventories 705 541 551
Trade receivables 875 846 951
Short-term receivables 341 311 449
Cash and cash equivalents 222 277 439
Total 2 143 1 975 2 390
Total 16 491 16 164 16 562
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2 891 2 876 2 886
Other equity 4 065 3 297 3 520
Total 6 956 6 173 6 406
Minority interests 245 1 449 232
Provisions for liabilities and
charges 223 187 207
Deferred tax liabilities 1 804 1 803 1 843
Liabilities
Long term liabilities
Interest-bearing 4 289 3 504 4 840
Interest free 359 340 346
Short term liabilities
Interest-bearing 1 162 1 192 1 225
Interest free 1 453 1 516 1 463
Total 16 491 16 164 16 562
Equity per share, EUR 8.18 7.30 7.55
Number of shares, 1,000 shares 850 262 845 898 848 832
CHANGE IN SHAREHOLDERS' EQUITY
MEUR Jan-Sep 30 Jan-Sep 30 Dec 31
2004 2003 2003
Shareholders' equity, 1 January 6 406 5 897 5 897
Stock options exercised 14 1 22
Dividend -359 -264 -264
Translation differencies 18 -3 -18
Net earnings for the period 877 542 769
Total 6 956 6 173 6 406
CASH FLOW STATEMENT
Jan-Sep 30 Jan-Sep 30 Dec 31
MEUR 2004 2003 2003
Net cash from operating activities 1 299 1 381 1 577
Capital expenditures -399 -370 -550
Acquisition of shares -108 -504 -570
Proceeds from sales of fixed
assets 34 101 142
Proceeds from sales of shares 16 1 221 1 227
Change in other investments -97 -53 -67
Cash flow before financing activitie 745 1 776 1 759
Net change in loans -612 -1 791 -399
Dividends paid -359 -264 -264
Other financing items * 8 -40 -1 245
Net cash from financing activities -963 -2 095 -1 908
Net increase (+)/decrease (-) in cash
and marketable securities -218 -319 -149
* Includes the redemption of Fortum Capital Ltd preference shares -1 200 million
euros in December 2003
KEY RATIOS
Sep 30 Sep 30 Dec 31 Last twelve
2004 2003 2003 months
Capital employed, MEUR 12 652 12 773 12 704
Interest-bearing net debt, MEUR* 5 229 4 420 5 626
Investments, MEUR 507 889 1 136 754
Return on capital employed, % 14.5 10.6 11.4 14.2
Return on shareholders' equity, %* 17.1 10.5 12.3 15.4
Interest coverage 7.5 5.1 5.8 7.8
FFO / interest-bearing net debt, % 1) 34.4 35.3 26.1
Gearing, % * 73 58 85
Equity-to-assets ratio, % 44 47 40
Average number of employees 13 112 13 594 13 343
1) FFO = Funds from operations
* Figures include the effect of the redemption of Fortum Capital Ltd preference
shares in December 2003.
NET SALES BY SEGMENTS
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 453 524 1 505 2 057 2 681 2 129
Heat 145 132 701 672 964 993
Distribution 150 143 513 502 688 699
Markets 287 322 1 009 1 212 1 634 1 431
Oil Refining 1 641 1 349 4 579 4 311 5 693 5 961
Oil Retail 666 543 1 763 1 650 2 203 2 316
Shipping and other Oil 69 62 248 243 308 313
Other 23 24 67 68 93 92
Eliminations -597 -572 -1 895 -2 160 -2 872 -2 607
Total 2 837 2 527 8 490 8 555 11 392 11 327
OPERATING PROFIT BY SEGMENTS
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 124 82 490 410 603 683
Heat 8 -6 142 93 173 222
Distribution 55 47 196 189 247 254
Markets 11 13 26 18 35 43
Oil Refining 131 89 411 224 281 468
Oil Retail 15 21 41 46 44 39
Shipping and other Oil 16 9 83 55 79 107
Other -15 -16 -39 -35 -42 -46
Total 345 239 1 350 1 000 1 420 1 770
NON-RECURRING ITEMS IN OPERATING PROFIT BY SEGMENTS
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation -2 3 20 2 4 22
Heat - -4 - -4 -3 -3
Distribution 1 -1 1 20 20 1
Markets - - - - - -
Oil Refining 31 14 96 - 14 110
Oil Retail 2) -1 - 5 1 -9 -5
Shipping and other Oil 2) - 1 4 -2 10 16
Other -2 -5 -2 9 24 15
Total 27 8 124 26 60 156
2) Split between segments corrected in 2003 figures
DEPRECIATION, AMORTISATION AND WRITE-DOWNS BY SEGMENTS
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 20 27 76 87 116 105
Heat 30 29 91 85 116 122 ¨
Distribution 33 35 99 110 143 132
Markets 4 3 12 10 14 16
Oil Refining 19 20 56 59 80 77
Oil Retail 7 8 22 23 41 40
Shipping and other Oil 3 4 8 12 14 10
Other 4 2 8 9 14 13
Total 120 128 372 395 538 515
INVESTMENTS BY SEGMENTS
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 93 23 155 351 386 190
Heat 30 37 80 113 158 125
Distribution 25 17 65 241 339 163
Markets 2 - 4 26 28 6
Oil Refining 44 16 111 60 97 148
Oil Retail 10 8 21 21 36 36
Shipping and other Oil 21 23 61 64 71 68
Other 4 4 10 13 21 18
Total 229 128 507 889 1 136 754
NET ASSETS BY SEGMENTS
MEUR Sep 30 Sep 30 Dec 31
2004 2003 2003
Power Generation 6 236 6 391 6 391
Heat 2 424 2 342 2 466
Distribution 3 088 3 089 3 129
Markets 139 57 23
Oil Refining 1 199 1 052 1 003
Oil Retail 328 329 329
Shipping and other Oil 184 150 133
Other 53 58 45
Eliminations -8 -9 -8
Total 13 643 13 459 13 511
RETURN ON NET ASSETS BY SEGMENTS 3)
% Sep 30 Sep 30 Sep 30 Sep 30 Dec 31 Dec 31 Last Last
2004 2004*) 2003 2003*) 2003 2003*) twelve twelve
months months*)
Power Generation 10.5 10.0 8.6 8.5 9.5 9.4 10.9 10.5
Heat 7.8 7.8 5.3 5.5 7.3 7.5 9.2 9.2
Distribution 8.4 8.4 8.1 7.2 7.9 7.2 8.2 8.2
Markets 28.0 28.0 32.7 32.7 55.2 55.2 38.9 38.9
Oil Refining 49.6 38.0 27.4 27.4 26.2 24.9 42.8 32.7
Oil Retail 18.0 15.8 19.4 19.0 13.8 16.6 12.6 14.2
Shipping and other Oil 69.5 66.1 52.0 53.9 56.7 49.5 68.0 57.8
*) Non-recurring items deducted from operating profit
2) December 31 2003*) figures changed due to corrections in non-recurring items.
3) Return on net assets, % = Operating profit/average net assets
CONTINGENT LIABILITIES
MEUR Sep 30 Sep 30 Dec 31
2004 2003 2003
Contingent liabilities
On own behalf
For debt
Pledges 163 525 149
Real estate mortgages 92 237 91
For other commitments
Real estate mortgages 57 54 55
Pledges, company and other mortgages 1 1 -
Sale and leaseback 8 9 8
Other contingent liabilities 78 96 101
Total 399 922 404
On behalf of associated companies
Pledges and real estate mortgages 11 12 12
Guarantees 357 597 562
Other contingent liabilities 182 182 182
Total 550 791 756
On behalf of others
Guarantees 4 15 15
Other contingent liabilities 6 5 7
Total 10 20 22
Total 959 1 733 1 182
Operating lease liabilities
Due within a year 66 55 75
Due after a year 105 108 103
Total 171 163 178
Liability for nuclear waste disposal 570 545 570
Share of reserves in the Nuclear Waste
Disposal Fund -560 -535 -560
Liabilities in the balance sheet 4) 10 10 10
4) Mortgaged bearer papers as security
In addition to other contingent liabilities a guarantee has been given on behalf
of Gasum Oy, which covers 75% of the natural gas commitments arising from the
natural gas supply agreement between Gasum and OOO Gazexport.
Derivatives Sep 30 2004 Sep 30
2003 Dec 31 2003
6) 7) 8) 6) 7) 8) 6) 7) 8)
MEUR
Forward rate agreements 221 -1 -1 335 - - 330 - -
Interest rate swaps 3 843 -50 -38 5 784 9 16 4 253 -97 -69
Forward foreign exchange
contracts 5) 7 466 -38 -1 7 866 -54 33 8 396 129 49
Currency swaps 323 -3 -1 347 13 5 333 -3 1
Purchased currency
options 525 -9 -9 32 4 4 - - -
Written currency options 525 3 3 15 - - - - -
5) Incl. also contracts used for equity hedging
6) Contract or notional value
7) Fair value
8) Not recognised as an income
Oil futures and forward
instruments
Sep 30 2004 Sep 30
2003 Dec 31 2003
9) 10) 11) 9) 10) 11) 9) 10) 11)
1000 MEUR MEUR 1000 MEUR MEUR 1000 MEUR MEUR
bbl bbl bbl
Sales contracts 16 010 -19 -19 11 345 -3 -3 22 304 -11 -11
Purchase contracts 59 825 48 48 26 398 7 7 37 239 14 14
Purchased options 13 495 9 9 100 - - 150 - -
Written options 13 993 -8 -8 100 - - 600 - -
9) Volume
10) Fair value
11) Not recognised as an income
Electricity derivatives
Sep 30 2004 Sep 30 2003 Dec 31 2003
9) 10) 11) 9) 10) 11) 9) 10) 11)
TWh MEUR MEUR TWh MEUR MEUR TWh MEUR MEUR
Sales contracts 74 -93 -11 58 -349 -218 58 -100 -65
Purchase contracts 42 125 39 57 308 176 50 136 101
Purchased options 1 - - 1 -1 -2 - - -
Written options - - - 3 -4 -3 - - -
Natural gas derivatives
Sep 30 2004 Sep 30 2003 Dec 31 2003
9) 10) 11) 9) 10) 11) 9) 10) 11)
Mill. MEUR MEUR Mill. MEUR MEUR Mill. MEUR MEUR
th. th. th.
Sales contracts - - - 2 543 36 - 8 - -
Purchase contracts - - - 2 543 -34 - 8 - -
Purchased options - - - 709 1 - - - -
Written options - - - 709 -3 - - - -
The fair values of derivative contracts subject to public trading are based on
market prices as of the balance sheet date. The fair values of other derivatives
are based on the present value of cash flows resulting from the contracts, and,
in respect of options, on evaluation models. The amounts also include unsettled
closed positions. Derivative contracts are mainly used to manage the group's
currency, interest rate and price risk.
QUARTERLY NET SALES BY SEGMENTS
MEUR Q3/04 Q2/04 Q1/04 Q4/03 Q3/03 Q2/03 Q1/03
Power Generation 453 488 564 624 524 573 960
Heat 145 195 361 292 132 182 358
Distribution 150 157 206 186 143 160 199
Markets 287 303 419 422 322 332 558
Oil Refining 1 641 1 635 1 303 1 382 1 349 1 265 1 697
Oil Retail 666 566 531 553 543 521 586
Shipping and other Oil 69 78 101 65 62 87 94
Other 23 24 20 25 24 22 22
Eliminations -597 -616 -682 -712 -572 -707 -881
Total 2 837 2 830 2 823 2 837 2 527 2 435 3 593
QUARTERLY OPERATING PROFIT BY SEGMENTS
MEUR Q3/04 Q2/04 Q1/04 Q4/03 Q3/03 Q2/03 Q1/03
Power Generation 124 138 228 193 82 116 212
Heat 8 27 107 80 -6 22 77
Distribution 55 54 87 58 47 61 81
Markets 11 5 10 17 13 12 -7
Oil Refining 131 187 93 57 89 51 84
Oil Retail 15 20 6 -2 21 10 15
Shipping and other Oil 16 23 44 24 9 19 27
Other -15 -11 -13 -7 -16 -5 -14
Total 345 443 562 420 239 286 475
