Fortum Corporation (FOJCF.PK) Q2 2010 Earnings Call July 16, 2010 09:00 am ET Executives Tapio Kuula - President & CEO Juha Laaksonen - EVP & CFO Analyst Martin Young - Nomura Neil Beddall - Barclays Ingo Becker - Kepler Capital Markets Lueder Schumacher - UniCredit Per Lekander - UBS PresentationTapio Kuula
Thank you and welcome to our conference call. We are here together, my name is Tapio Kuula and I have here together here with me here as well our CFO, Juha Laaksonen. And this is the report covering the first six months of 2010 and I hope that you have material available for you. And I will first start with overall report and then Juha will continue and then I will look at the future prospects, and after that as usual questions-and-answers. Page number 3; you can see that we feel that the business environment is improving. There are clearly some positive signals especially from industry and you can see that the Nordic area, the Nordic power consumption has gone up by 6%. Still we are about 10 megawatt-hours behind consumption in 2008. Also Russian power consumption has increased, increased by 4% and also positive price development. We will come back more in detail to that later. Spot prices have increased in Nordic area and forward prices have been pretty stable, and you can see the price development on next page, page number 4 and clearly the big difference between spot prices and forward prices. If we turn to page 5, we can say that these first six months we are satisfied. The second quarter wasn’t probably as good as the whole six month period, but anyway the comparable operating profit was close to EUR 1 billion, EUR 990 million. We had lower hydro and nuclear volumes, of course you know that the hydro reservoirs have been lower and the nuclear volumes were lower because of those upgrade projects, especially because those upgrade projects in Sweden took longer time, and of course when they took longer time also they cost more. So in that sense there were two different consequences, negative consequences for the less volumes and higher costs. In the Russian division in this adjacent segment and in this division we have clearly positive development and of course we also have got some positive translation, fx from the Swedish Krona.