Fortum says clean energy transition may slow, but not stop, in Europe

By Anne Kauranen

HELSINKI (Reuters) -Europe's clean energy transition may slow down but will likely continue despite the U.S. cancelling its emissions-cutting commitments, Fortum's CEO said on Tuesday as the Finnish utility reported softer-than-expected fourth-quarter earnings.

Despite the uncertainty around climate goals created by U.S. President Donald Trump's new administration, Markus Rauramo said he had not seen signs of power clients backing out of their commitments to emission-cutting technologies such as clean fuels, steel, aluminium or hydrogen.

"All these actors want clean electricity specifically because they have made promises to their customers that their consumption is clean and their products are clean. I don't see any major signs of backing away from this," he told Reuters.

He added, however, that "we do see various announcements that companies are considering how quickly they will reach these goals".

Fortum's main markets are in the Nordic countries where almost all power production is already fossil free.

The state-controlled utility on Tuesday reported fourth-quarter comparable operating profit that missed analysts' expectations, citing lower hydro and nuclear volumes and weaker prices.        

Its comparable operating profit for the quarter fell to 257 million euros ($264.8 million), missing analysts' expectations of 280 million euros in a company-provided poll.    

Operating profit for the period rose to 390 million euros from 376 million euros a year earlier, including a one-off capital gain of 176 million from the divestment of Fortum's recycling and waste business.

Abundant availability of wind and hydro power as well as seasonally warm winter weather in the region pushed Nordic spot prices down last year, but Fortum said the impact was partly offset by an ongoing recovery in Nordic power demand.

"We are starting a feasibility study to explore possibilities for flexible pumped-storage hydro power in Sweden to provide much-needed flexible balancing power," Rauramo said in a statement.           

Fortum's board of directors proposed a dividend of 1.40 euros per share for 2024. Shares in the company fell 1.1% in the morning trade in Helsinki.         

($1 = 0.9709 euros)

(Reporting by Anne Kauranen in Helsinki; Editing by Jan Harvey)