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Stock exchange release

Fortum Corporation Interim Report 1 Janu

24 July 2003, 08:00 EEST

Fortum Corporation STOCK EXCHANGE RELEASE 24 July 2003 at 09.00 1

Fortum Corporation Interim Report 1 January - 30 June 2003


Continued strong performance by Fortum
- significant improvement in ongoing business


The first half-year in brief
- Operating profit excluding non-recurring items improved by 71% and
  was EUR 743 (435) million
- Net cash from operating activities continued to be strong and was
  EUR 1,060 million
- The balance sheet was further strengthened, gearing at 60%
- Market position was strengthened in Norway and north-western
  Russia

Key figures               II/03  II/02  I-      I-   2002   Last 12
                                        II/03   II/02       months
                                                            (LTM)
Net sales, EUR million     2435  2682   6028  5253  11148   11923
Operating profit, EUR       286   422    761   749   1289    1301
million
-   excluding non-          272   198    743   435    974    1282
recurring items
Profit before taxes, EUR    216   346    626   615   1008    1019
million
Earnings per share, EUR    0.17  0.29   0.49  0.50   0.79    0.77
Shareholders’ equity per                7.13  6.72   6.97        
share, EUR
Capital employed                       13077 13734  13765        
(at end of period), EUR
million
Interest-bearing net debt               4502  6182   5848        
(at end of period), EUR
million
Investments, EUR million                 761  3956   4381    1186
Net cash from operating                 1060   775   1351        
activities,
EUR million
Return on capital employed, %           12.1  10.3   11.1    10.6
Return on shareholders’ equity, %       11.9   9.1   10.5    10.0
Gearing, %                                60    87     80        
Average number of employees            13272 14659  14053        
Average number of shares, million     845823 845638 845642  845785


During the first half of the year, the key market drivers, the
market price of electricity and the international oil refining
margin were significantly higher than during the corresponding
period in 2002. After the record high levels around the year-end,
Nord Pool electricity prices decreased, however, to a level
clearly above that of last year. The international oil refining
reference margin was very high at the beginning of the year,
decreasing somewhat towards the summer.

Fortum took important strategic steps in Norway and north-western
Russia by agreeing with E.ON AG on a swap of power assets. In
addition, Fortum acquired more shares in Hafslund on the market,
leading to a 34.1% share ownership.

The integration of Birka Energi progressed as planned. The synergy
benefits achieved during the first half of the year exceeded EUR
60 million.

The Group’s financial performance in the period from January to
June remained strong and cash flow continued to be at a good level
supported by a decreased working capital and realised foreign
exchange gains. Net debt was further decreased from the first
quarter, despite approximately EUR 500 million worth of strategic
acquisitions. As a result, gearing decreased to 60%.


Net sales and results

April-June

During the second quarter, the Nord Pool electricity price and the
international oil refining margin were lower than in the first
quarter, but exceeded the corresponding level in 2002.

Group operating profit totalled EUR 286 (422) million. The
operating profit excluding non-recurring items, EUR 272 (198)
million, improved by EUR 74 million compared to the corresponding
period in 2002. The improvement was EUR 141 million including the
effect of discontinuing operations. The net amount of non-
recurring items was EUR 14 (224) million.

Typically for the seasons, the results for power and heat
businesses were lower than in the first quarter. However, the
operating profit excluding non-recurring items for the Power, Heat
and Gas segment nearly tripled compared to the corresponding
period last year. The performance of the Markets segment developed
positively. The results of Oil Refining and Marketing segment
stayed almost at last year’s level despite an inventory loss owing
to the decrease in the price of crude oil. Thus, the operational
result of this segment was clearly improved compared to last year.

January-June

Group net sales stood at EUR 6,028 (5,253) million. The main
reason for the increase was higher market prices for electricity
and petroleum products.

Group operating profit totalled EUR 761 (749) million. The
operating profit excluding non-recurring items, EUR 743 (435)
million, improved by EUR 308 million compared to the corresponding
period in 2002. The net amount of non-recurring items was EUR 18
(314) million. Most of the non-recurring items last year were
gains on sales of fixed assets.

Electricity and heat sales volumes increased. This, together with
higher electricity prices, resulted in a significant improvement
in the result for the Power, Heat and Gas segment.

The result for Electricity Distribution segment was lower because
of considerable gains on sales in 2002. The operating profit
excluding non-recurring items was improved compared to last year,
however.

The result for the Markets segment improved compared to last year.

The international oil refining margins were markedly higher than a
year ago, considerably improving the results of the Oil Refining
and Marketing segment. The Shipping business enjoyed high freight
rates, mainly during the first quarter.

Profit before taxes was EUR 626 (615) million.

The Group´s net financial expenses were EUR 135 (134) million.

Minority interests accounted for EUR 47 (40) million. These were
mainly attributable to the preference shares issued by Fortum
Capital Ltd in 2000 and to Fortum Värme Holding, in which the City
of Stockholm has a 50% economic interest.

Taxes for the period totalled EUR 167 (149) million.

Net profit for the period was EUR 412 (426) million. Earnings per
share were EUR 0.49 (0.50). Return on capital employed was 12.1%
(10.3%) and return on shareholders´ equity was 11.9% (9.1%).

SEGMENT REVIEWS

Power, Heat and Gas

The main business area comprises power and heat generation and
sales as well as gas operations in the Nordic countries and other
parts of the Baltic Rim. The Service business (former Fortum
Energy Solutions) is included in this segment as from 1 January
2003.


EUR million             II/03  II/02 I-     I-     2002   LTM
                                     II/03  II/02
Net sales                 718   783   1932  1716  3644   3860
- electricity sales       381   326   1056   703  1661   2014
- heat sales              165   146    433   339   686    780
- other sales             172   311    443   674  1297   1066
Operating profit          136   156    429   305   617    741
- excluding non-          136    48    430   196   501    735
recurring items
Return on net assets, %                9.9   7.7   7.5    8.5
Net assets (at end of                 8566  8735  8748       
period)

Electricity consumption in the Nordic countries decreased by 2%
during the second quarter and was 85.7 (87.5) terawatt-hours
(TWh). Consumption in Finland decreased by 4%. In Sweden,
consumption was at the same level as last year and in Norway it
was down by 3% on the corresponding period last year.

During the period from January to June, electricity consumption in
the Nordic countries remained at the previous year’s level and was
197 (198) TWh. Consumption in Finland increased by 6%. In Sweden,
consumption was at the same level as last year and in Norway it
was down by 5% on the corresponding period last year.

During the second quarter, the average spot price for electricity
on the Nordic power exchange (Nord Pool) was EUR 28.6 per megawatt-
hour compared to EUR 53.3 during the first quarter. The average
price of electricity during the period from January to June was
EUR 40.9 (18.7) per megawatt-hour. The price level was supported
by the deficit in water reservoirs at the beginning of the year
and lower-than-normal hydro inflows during the first two quarters.
Despite the lower-than-normal hydro inflows, the hydrological
situation strengthened due to low hydro production.

The average price of electricity on the Nordic power exchange
increased by 119% in the period from January to June compared to
last year. The corresponding price increase of electricity sold by
Fortum in the Nordic countries was 43%. The Nord Pool price during
the second quarter was down by 46% compared to the first quarter.
The corresponding decrease for Fortum was 19%.

The Power, Heat and Gas segment’s sales in the Nordic countries
amounted to 30.2 (26.6) TWh in total and represented approximately
15% (14%) of total Nordic electricity consumption during the
period from January to June.

Fortum’s own power generation in the Nordic countries during
January to June was 26.7 (22.6) TWh, of which about 8.4 (9.7) TWh
or 31% (43%) was hydropower-based and 12.7 (10.6) TWh or 48% (47%)
nuclear power-based. Due to low hydro power availability thermal
power production increased to 5.6 (2.3) TWh and its share of own
production increased to 21% (10%). Of the total Nordic electricity
consumption during the first half of the year, 14% was provided
from Fortum’s production facilities, compared to 11% last year.

In April, Fortum completed majority share acquisitions of two heat
companies, one in Poland (73% of the company D.Z.T. S.p.z.o.o.), 
and one in Estonia (60% of the company Tartu Energia AS).

Electricity sales by    II/03  II/02 I-     I-    2002   LTM
area                                 II/03  II/02
TWh
Sweden *)                 6.3   8.2   15.2  14.5  28.0   28.7
Finland                   6.6   5.3   15.0  12.1  26.1   29.0
Other countries           1.0   1.9    1.7   4.1   5.9    3.5
Total                    13.9  15.4   31.9  30.7  60.0   61.2

Heat sales by area      II/03  II/02 I-    I-     2002   LTM
TWh                                  II/03 II/02

Sweden *)                 1.7   1.6    5.7   3.9   8.2   10.0
Finland                   2.3   2.0    5.8   5.3   9.8   10.3
Other countries           1.4   1.0    2.2   2.2   4.5    4.5
Total                     5.4   4.6   13.7  11.4  22.5   24.8

*) The effects of Birka Energi’s change of ownership on
electricity and heat sales volumes were 2.4 TWh and 1.4 TWh
respectively in 2002.

Electricity 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             II/03  II/02 I-     I-     2002   LTM
                                     II/03  II/02
Net sales                 160   156    359   317   640    682
- distribution network    130   136    297   267   526    556
transmission
- regional network         20    19     45    37    80     88
transmission
- other sales              10     1     17    13    34     38
Operating profit           61    72    142   185   279    236
- excluding                41    40    121    94   187    214
non-recurring items
Return on net assets, %                9.0  12.7   9.3    7.5
Net assets (at end of                3,064 3,145 3,199       
period)

Volume of distributed   II/03  II/02 I-     I-    2002   LTM
electricity by area                  II/03  II/02
TWh 
Sweden *)                 3.4   3.3    8.3   6.6  14.4   16.1
Finland                   1.3   1.1    3.3   2.5   5.4    6.2
Other countries           0.3   0.6    0.3   1.3   1.4    0.4
Total                     5.0   5.0   11.9  10.4  21.2   22.7
*)The Birka Energi acquisition accounts for a 1.7 TWh increase in
the volume transmitted via the distribution networks in 2002.


Number of electricity            30.6.   30.6.   2002
distribution customers by        2003    2002
area, thousands
Sweden                            850     890     890
Finland                           395     390     390
Other countries *)                115      20      20
Total                            1360    1300    1300
*) Østfold Energi Nett AS with 94,000 customers is included in the
figures as of 1 May, 2003.

The volumes of distribution and regional network transmissions
totalled 11.9 (10.4) TWh and 10.6 (9.6) TWh respectively.

Electricity transmissions via the regional distribution network to
customers outside the Group totalled 7.8 (6.5) TWh in Sweden and
2.8 (3.1) TWh in Finland.

Markets

Markets focuses on the retail sale of electricity and oil
products, mainly heating oil, as well as related services to a
total of 1.4 million private and business customers.


EUR million             II/03  II/02 I-    I-    2002  LTM
                                     II/03 II/02
Net sales                 327   270    803   576 1,280  1,507
Operating profit           15     4      8     6   -11     -9
- excluding                15     4      8     5   -12     -9
non-recurring items
Return on net assets, %               23.1   9.5 -11.4  -11.5
Net assets (at end of period)          119   109    55       


The Markets business unit buys its electricity and oil products at
market terms.

The market environment during the period was characterised by
falling wholesale prices of electricity. However, overall prices
were higher than during the corresponding period last year.

Electricity sales totalled 17.2 (15.6) TWh during the period. The
effect on electricity sales volumes of the change in Birka
Energi’s ownership was 1.9 TWh during the period from January to
February 2002. Sales of heating oil amounted to 0.4 (0.4) million
tonnes during the period from January to June.

As of May 2003, Markets has been serving 83,000 customers in
Norway through the acquisition of Østfold Energi Kraftsalg AS.

A programme to improve business processes was launched during the
spring.

Oil Refining and Marketing

The activities cover the refining and marketing of oil as well as
logistics. The main products are traffic fuels and heating oils.

EUR million             II/03  II/02 I-    I-    2002   LTM
                                     II/03 II/02
Net sales                1643  1790   3718  3321  7083   7480
Operating profit           75    79    200   135   253    318
- excluding                93    70    216    97   205    324
non-recurring items
Return on net assets, %               26.8  16.8  16.0   21.0
Net assets (at end of                 1435  1543  1510       
period)

During the period, the international refining margin in north-
western Europe (Brent Complex) averaged USD 2.9/bbl (0.4/bbl).
Fortum’s premium margin continued to be on average about USD 2/bbl
above the international reference margin.

The price of Brent crude averaged USD 28.8/bbl (23.1/bbl). It was
at its highest at the beginning of June, about USD 29/bbl. The
inventory losses during the period from January to June were EUR
14 (gains 29) million.

Fortum refined a total of 6.4 (6.3) million tonnes of crude oil
and other feedstocks. A total of 3.8 (3.9) million tonnes of
petroleum products were sold in Finland. Exports amounted to 2.6
(2.4) million tonnes.

In Shipping, two product tankers, in which Fortum’s holding is
50%, were agreed to be sold in June. In July, a letter of intent
was signed concerning selling the oil terminal in Tallinn,
Estonia. The final contract is scheduled to be signed during this
year.

In June, Fortum sold its bitumen wholesale business to the Swedish
Nynäs Petroleum, in which Fortum has a 50% holding.

Fortum did not have any oil or gas production of its own during
the first half of 2003. Oil production at the South Shapkino field
in north-western Russia started in mid-July. Fortum’s share of the
exploitable oil reserves in this oil field, which is owned fifty-
fifty by Fortum and the Russian Lukoil, has been estimated at
approximately 82 million barrels.


Deliveries of petroleum II/03  II/02 I-    I-    2002   LTM
products refined by                  II/03 II/02
Fortum-by product group (1,000 t)
Gasoline                  971  1095   2060  2143  4595   4512
Diesel                   1110   887   1905  1843  3619   3681
Aviation fuel             131   164    251   300   586    537
Light fuel oil            296   337    719   723  1503   1499
Heavy fuel oil            296   265    682   679  1233   1236
Other                     446   396    788   615  1504   1677
Total                    3250  3144   6405  6303 13040  13142


Deliveries of petroleum II/03  II/02 I-    I-    2002   LTM
products refined by                  II/03 II/02
Fortum-by area (1,000 t)
                Finland  1860  1938   3789  3870  7845   7764
 Other Nordic countries   533   484    967   928  1982   2021
   Baltic countries and    21     8     29    19    41     51
                 Russia
         USA and Canada   133   339    517   587  1276   1206
        Other countries   703   375   1103   899  1896   2100
                  Total  3250  3144   6405  6303 13040  13142
                                                                  

Business development and restructuring

In January, Fortum and E.ON AG agreed on a swap of power assets.
Fortum acquired assets in Norway and north-western Russia and sold
some non-core assets in Ireland, Germany and southern Sweden.

As a result of these transactions, the shares involved in 
the Russian Lenenergo were transferred to Fortum in March and 
the shares in the Norwegian Hafslund ASA as well as Østfold 
Energi Kraftsalg AS, Østfold Energi Nett AS and Østfold 
Entreprenor AS in April. After some further acquisitions from 
the market, Fortum owned 34.1% of the share capital in Hafslund 
at the end of June. The total acquisition cost of the Hafslund 
shares was EUR 279 million.

At the end of June, Fortum completed the divestments of power
plants in Burghausen, Germany and Edenderry, Ireland as well as
Fortum Distribution Småland AB in Sweden.

Transactions relating to the swap of assets with E.ON were
completed by the end of June. The transaction relating to the
shares in the Norwegian Fredrikstad Energi AS is still waiting for
technical conclusion.

The disposal of the Norwegian E&P assets was completed in March.
The financial impact of the transaction was included in Fortum´s
2002 annual closing. In June, Fortum divested its retail gas sales
operations in the U.K.

Investments and financing

Investments in fixed assets during the period from January to June
totalled EUR 761 (3,956) million. Of this, EUR 517 (3,706) million
were acquisitions.

At the end of the period, interest-bearing net debt stood at EUR
4,502 (6,182) million. The gearing ratio at the end of June was
60% (80% at the end of 2002).

Group net financial expenses were EUR 135 (134) million.

In February, Fortum Corporation established a bond programme
(Medium Term Note Programme) of SEK 7.0 billion for the purpose of
enabling the issue of bonds on the Swedish capital markets in
Swedish krona and euro. The programme replaces the SEK 7.0 billion
programme in the name of Fortum Power and Heat AB.

In April, Fortum Corporation signed a EUR 1.2 billion revolving
credit facility. This five-year facility is for general corporate
purposes and replaces existing syndicated facilities established
by various subsidiaries.

In July, Fortum Corporation established a bond programme (Euro
Medium Term Note Programme) of EUR 4.0 billion in order to enable
the issue of bonds on the international capital markets.

Shares and shareholdings

A total of 72,060 Fortum Corporation shares were subscribed to
with the share warrants relating to Fortum Corporation’s 1999
warrant bond to employees and management stock option scheme. The
increase in the share capital resulting from the share
subscriptions, a total of EUR 245,004, was entered in the trade
register on 5 May 2003. After the increase, Fortum Corporation’s
share capital is EUR 2,875,881,891 and the total number of shares
is 845,847,615.

Group personnel

The average number of employees in the Group during the period
from January to June was 13,272 (14,659). The reduction is mainly
attributable to the combination of the businesses of Birka Energi
and Fortum, as well as to the formation of the new associated
company Enprima at the beginning of this year. The number of
employees at the end of the period was 13,969 (13,670 at the end
of 2002).

Fortum has decided to launch a new share-based long-term incentive
programme (Performance Share Arrangement) for key personnel in the
Group. The potential reward under the arrangement will be based on
the performance of the Group, its business units and the
individual manager, as well as appreciation of the Fortum share.
At this stage the new arrangement concerns some 190 managers.

Fortum estimates that 0.1 to 0.3 per cent of the outstanding
Fortum shares i.e. 1,000,000 to 2,500,000 shares, will be
allocated under each individual plan. The shares will be bought on
the market and thus there will be no dilution effect. This
arrangement is intended to replace other possible long term
incentive schemes for top management.


Appointments and resignations

In April, Tanja Karpela, Leena Luhtanen and Matti Vanhanen
announced their resignations from Fortum's Supervisory Board after
their appointment as members of the Council of State.

In June, Kari Huopalahti, Senior V.P. Corporate Development and
member of the Corporate Executive Committee, left the company.

The Chairman of the Board of Directors, Matti Vuoria, has been
appointed President and CEO of Varma-Sampo, a major Finnish mutual
pension insurance company, as of 1 June 2004. Matti Vuoria
continues as Fortum´s Executive Chairman until the end of this
year.

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.

According to general market information, electricity consumption
in the Nordic countries is predicted to increase by about 1-2%
each year over the next years. During the first half of 2003, the
average spot price for electricity was EUR 40.9 per megawatt-hour
on the Nordic electricity market, or 119% higher than the
corresponding figure for 2002. The electricity forwards for the
rest of 2003 at the beginning of July were in the range of EUR 29-
30 per megawatt-hour.

The synergy benefits generated by the creation of a pan-Nordic
power and heat business following the acquisition of the remaining
50% of the former Birka Energi will exceed the target of EUR 100
million a year as of 2004.

The continuous operations of the power and heat businesses usually
result in a significantly better performance in the first and last
quarter of the year than in the second and third quarter.

The international refining margin in north-western Europe (Brent
Complex) was considerably higher than at the beginning of 2002 and
averaged USD 2.9/bbl (USD 0.4/bbl) during the period from January
to June. In July 2003, the international refining margin has been
averaging USD 2.7/bbl. For several years, the international Brent
Complex refining margin has averaged USD 1.5 - 2.0/bbl. The
management expects Fortum’s premium margin to remain at the strong
levels of previous years. During 2003, no major maintenance
shutdowns are planned at the refineries.

The average price for Brent crude oil was USD 27.5/bbl in January-
June 2003. On 30 June, it was USD 28.3/bbl. In July 2003, the
price has been averaging USD 28.4/bbl while the International
Petroleum Exchange’s Brent futures for the remainder of 2003 have
been averaging USD 26.3/bbl. The price of crude oil has an impact
on the results of Oil Refining and Marketing through inventory
gains and losses.

Due to the disposals of the oil and gas production assets in Oman
and Norway, there was no own production in the first half of
2003. Oil production at the South Shapkino oil field in north-
western Russia started in mid-July. A production level of 12,500
bbl/d (Fortum’s 50% share) is expected to be reached in September.
Production will gradually be increased and full capacity (25,000
bbl/d) will be reached during 2004. The operations will be
earnings neutral during 2003.

The repositioning of Fortum has now been virtually completed. Most
of the targets set out in the strategic agenda have been reached:
a strong balance sheet and well performing businesses,
which generate a healthy cash flow. This gives Fortum a solid
platform to further strengthen its position as a leading Nordic
energy company.

The information contained in the Interim Financial Statements has
not been audited.


Espoo, 24 July 2003
Fortum Corporation
The Board of Directors


Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications

Distribution:
Helsinki Exchanges
Key media

For further information, please contact:
Juha Laaksonen, CFO, tel. +358 10 452 4519

FORTUM GROUP

JANUARY-JUNE 2003
Interim financial statements are unaudited

CONSOLIDATED INCOME STATEMENT
                                                                           
MEUR                         Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12
				     	                        months
Net sales                    2435   2682   6028   5253  11148   11923
  Share of profits of
    associated  companies       9      4     20     13     31      38
  Other operating income       63    238     76    327    370     119
  Depreciation, amortisation
    and write-downs	     -134   -172   -267   -323   -694    -638                                     
  Other operating 
    expenses		    -2087  -2330  -5096  -4521  -9566  -10141
Operating profit              286    422    761    749   1289    1301
  Financial income and 
    expenses                  -70    -76   -135   -134   -281    -282
Profit before taxes           216    346    626    615   1008    1019
  Income taxes                -60    -84   -167   -149   -269    -287
  Minority interests          -14    -18    -47    -40    -73     -80
Net profit for the period     142    244    412    426    666     652


Earnings per share, EUR      0.17   0.29   0.49   0.50   0.79   0.77
Fully diluted earnings 
  per share                  0.16   0.29   0.48   0.50   0.78
Average number of shares, 
   1,000 shares                          845823 845638 845642 845785
Diluted adjusted average number of 
   shares, 1 000 shares                  855935 851580 851482

CONSOLIDATED BALANCE SHEET

MEUR                          	 	Jun 30	   Jun 30    Dec 31
				  	  2003	     2002      2002	 	
ASSETS
Fixed assets and other 
  long-term investments			13908  	   14868     14837
Current assets
    Inventories                   	  539        622       504
    Receivables                  	 1382 	    1638      2027
    Cash and cash equivalents    	  665        428       592
    Total                      . 	 2586  	    2688      3123
Total                           	16494  	   17556     17960

SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
    Share capital               	 2876 	   2875       2876
    Other equity            		 3151  	   2807       3020
    Total                       	 6027      5682       5896
Minority interests             		 1434      1443       1432
Provisions for liabilities 
   and charge      	        	   76        95        133
Deferred tax liabilities       		 1775      1804       1866
Long-term liabilities          		 4095  	   5402       4699
Short-term liabilities          	 3087      3130       3934
Total                          		16494     17556      17960

Equity per share, EUR           	 7.13      6.72       6.97
Number of shares, 1,000 shares 	       845848    845666     845776

CASH FLOW STATEMENT
MEUR                           		Jun 30   Jun 30     Dec 31 
				          2003	   2002       2002

Net cash from operating activities 	 1060       775       1351
  Capital expenditures               	 -244      -250       -649
  Acquisition of shares              	 -503     -1756	     -1771
  Proceeds from sales of fixed assets      80       102        120
  Proceeds from sales of shares      	 1219       754        889
  Change in other investments      	  -32       154         33
Cash flow before financing activities    1580      -221        -27
  Net change in loans                   -1204       295        209
  Dividends paid                         -264      -220       -220
  Other financing items            	  -40       -48         30
Net cash from financing activities     -1 508        27         19 
Net increase (+)/decrease (-) in cash
and marketable securities                  72      -194         -8

KEY RATIOS
                               	Jun 30     Jun 30     Dec 31    Last 12 
			          2003       2002       2002    months

Capital employed, MEUR           13077      13734      13765
Interest-bearing net debt,MEUR    4502       6182       5848
Investments, MEUR                  761       3956       4381     1186
Return on capital employed,%      12.1       10.3       11.1     10.6
Return on shareholders' equity,%  11.9        9.1       10.5     10.0
Interest coverage                  5.4        5.2        4.7      4.7
FFO / interest-bearing 
net debt, % 1) 			  42.6       24.5       28.1
Gearing, %                          60         87         80
Adjusted gearing, % 2)              91        125        115
Equity-to-assets ratio, %           45         41         41
Average number of employees      13272      14659      14053

1) FFO = Funds from Operations
2) The minority interest related to the preference shares amounting
 to EUR 1.2 billion and carrying fixed income dividend of 6.7 percent, 
issued by Fortum Capital Ltd,is treated as liability.

NET SALES BY SEGMENTS
                                       
MEUR                        Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12
							       months
Power, Heat and Gas           718   783    1932    1716   3644   3860
Electricity Distribution      160   156     359     317    640    682
Oil Refining and Marketing   1643  1790    3718    3321   7083   7480
Markets                       327   270     803     576   1280   1507
Other Operations               19    16      39      30     64     73
Eliminations                 -432  -356    -823    -756  -1668  -1735
Total                        2435  2659    6028    5204  11043  11867
Discontinuing operations*)     -     23       -      49    105      -
Total                        2435  2682    6028    5253  11148  11867
*) Internal sales excluded

OPERATING PROFIT BY SEGMENTS

MEUR                       Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12 
							      months
Power, Heat and Gas          136   156     429     305    617    741
Electricity Distribution      61    72     142     185    279    236
Oil Refining and Marketing    75    79     200     135    253    318
Markets                       15     4       8       6    -11     -9
Other Operations              -2   -10     -19     -21    -64    -62
Eliminations                   1     1       1       -      -      1
Total                        286   302     761     610   1074   1225
Discontinuing operations       -   120       -     139    215     76
Total                        286   422     761     749   1289   1301

NON-RECURRING ITEMS IN OPERATING PROFIT BY SEGMENTS  
                                                                                                                                                                             
MEUR                       Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12 
							       months
Power, Heat and Gas            -   108      -1     109    116      6
Electricity Distribution      20    32      21      91     92     22
Oil Refining and Marketing   -18     9     -16      38     48     -6
Markets                        -     -       -       1      1      -
Other Operations              12     8      14       8      4     10
Total                         14   157      18     247    261     32
Discontinuing operations       -    67       -      67     54    -13
Total                         14   224      18     314    315     19

DEPRECIATION, AMORTISATION AND WRITE-DOWNS BY SEGMENTS

MEUR                       Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12 
						              months
Power, Heat and Gas           58    65     116     115    236    237
Electricity Distribution      39    42      76      76    147    147
Oil Refining and Marketing    31    33      61      67    152    146
Markets                        3     7       7      12     25     20
Other Operations               3     4       7       7     23     23
Eliminations                   -    -2       -      -2     -1      1
Total                        134   149     267     275    582    574
Discontinuing operations       -    23       -      48    112     64
Total                        134   172     267     323    694    638

INVESTMENTS BY SEGMENTS

MEUR                       Q2/03 Q2/02 Q1-Q2/03 Q1-Q2/02 2002 Last 12 
			   			              months
Power, Heat and Gas          351    76     404    2468   2619    555
Electricity Distribution     201   113     224    1287   1394    331
Oil Refining and Marketing    64    41      96      64    177    209
Markets                       26     4      26     108    109     27
Other Operations               7     1      11       3      7     15
Total                        649   235     761    3930   4306   1137
Discontinuing operations       -    17       -      26     75     49
Total                        649   252     761    3956   4381   1186

NET ASSETS BY SEGMENTS
MEUR                            Jun 30          Jun 30        Dec 31  
			          2003	          2002          2002

Power, Heat and Gas 3)            8566            8735          8748
Electricity Distribution 3)       3064            3145          3199
Oil Refining and Marketing        1435            1543          1510
Markets                            119             109            55
Other Operations                   112             143            30
Total                            13296           13675         13542
Discontinuing operations             -            1013           927
Total                            13296           14688         14469
 
3) Net assets include deferred tax liabilities due to the allocated 
goodwill:  EUR 501 mill. June 30, 2003, and EUR 502 mill. 
December 31, 2002 in Power, Heat and Gas segment; and EUR 260 mill. 
June 30,  2003 EUR 344 mill. December 31, 2002  in Electricity 
Distribution.

RETURN ON NET ASSETS  BY SEGMENTS  4)

%                  Jun30 Jun30 Jun30 Jun30 Dec31 Dec31 Last 12 Last 12 
	           2003  2003*) 2002 2002*) 2002 2002*)months months*)

Power, Heat and Gas  9.9   9.9   7.7   4.9   7.5   6.1     8.5     8.4
Electricity 
   Distribution      9.0   7.7  12.7   6.5   9.3   6.2     7.5     6.8
Oil Refining and 
  Marketing 	    26.8  28.9  16.8  12.0  16.0  13.0    21.0    21.4
Markets             23.1  23.1   9.5   7.9 -11.4 -12.4   -11.5   -11.5

4) Return on net assets, % = Operating profit/average net assets
*) Non-recurring items deducted from operating profit

CONTINGENT LIABILITIES
MEUR                           Jun 30           Jun 30          Dec 31  
				 2003             2002            2002
Contingent liabilities
On own behalf
    For debt
      Pledges                     512              453             553
      Real estate mortgages       233	           236             237
      Company mortgages            -                82              32
      Other mortgages              -                52              26
    For other commitments
      Real estate mortgages        54               54              55
      Pledges, company and 
        other mortgages             1      	     6               8
    Sale and leaseback              9     	    16              15
    Other contingent liabilities   99              534             474
    Total                         908             1433            1400
On behalf of associated companies
    Pledges and real estate
       mortgages            	   12                8               9
    Guarantees                    637              218             345
    Other contingent liabilities  182              184             184
    Total                         831              410             538
On behalf of others
    Guarantees                     23                5               4
    Other contingent liabilities    6               14               4
    Total                          29               19               8
Total                            1768             1862            1946
Operating lease liabilities
Due within a year                  61               60              58
Due after a year                  121               66              91
Total                             182              126             149

Finance leases have been recognised as assets and liabilities.

Liability for nuclear waste
    disposal                      545              515             545
Share of reserves in
   the Nuclear Waste 
   Disposal Fund		 -535             -505            -535
Liabilities in the 
   balance sheet 5)                10               10              10

5) Mortgaged bearer papers as security
x
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                   Jun 30 2003           Dec 31 2002

Interest and currency      Contract  Fair  Not    Contract  Fair  Not
derivatives                   or     value recog.    or     value recog.
			   notinal         as an  notional        as an
MEUR			    value          income  value          income   

Forward rate agreements       784     -1     -1     2950      -2    -2
Interest rate swaps          6015      8     46     6898      21    34
Forward foreign exchange     
  contracts 6)	 	     7599     57     46     6351      63    30
Currency swaps                530     36     10     2334     227    60
Purchased currency optio       64      7      7      248       9    11
Written currency options       29      1      1       66       1     1

6) Incl. also contracts used for equity hedging

Derivatives                   Jun 30 2002    
          
Interest and currency      Contract  Fair  Not
derivatives                   or     value recognised
			   notional        as an
MEUR			    value          income      

Forward rate agreements      6015      1      1      
Interest rate swaps          6833     -2     33    
Forward foreign exchange
  contracts 6)	             6351     38      1          
Currency swaps              2 951    237     46        
Purchased currency optio      277     11     11            
Written currency options       94      2      2             


Oil futures and forward      Jun 30  2003            Dec 31 2002	
instruments    	          Volume   Fair   Not     Volume   Fair   Not 
                                   value  recog.           value  recog.
                                          as an                   as an
                                          income                  income

                          1000 bbl  MEUR   MEUR    1000 bbl MEUR   MEUR  
Sales contracts           16589        -      -    10697     -11    -11
Purchase contracts        19241        3      3    12170      13     13
Purchased options           400        -      -        -       -      -       
Written options             600        -      -        -       -      -

Oil futures and forward      Jun 30  2002  
instruments         	         
               
                           1000 bbl MEUR   MEUR     
Sales contracts            10364       1      1      
Purchase contracts          8351       1      1   
Purchased options              -       -      -     
Written options               25       -      -           


Electricity derivatives     Jun 30 2003		     Dec 31 2002
                           Volume   Fair   Not     Volume  Fair    Not
                                    value  recog.          value   recog.
                                           as an                   as an
                                           íncome                  income

                           TWh      MEUR   MEUR    TWh     MEUR    MEUR
Sales contracts             77      -368  -226      94    -2065   -1406
Purchase contracts          74       337   195      78     1709    1051
Purchased options            3        -2    -2       2        1      -1
Written options              7         -     -       6        3       6

Electricity derivatives     Jun 30 2002		   

                           TWh      MEUR   MEUR     
Sales contracts             87        74     73      
Purchase contracts          86       -72    -73      
Purchased options            5        -2     -1         
Written options              9         4      4           


Natural gas derivates      Jun 30 2003               Dec 31 2002
                          Volume   Fair    Not     Volume  Fair   Not
                                   value   recog.          value  recog.
				           as an                  as an
                                           income                 income

                          Mill.t   MEUR    MEUR    Mill.th.MEUR   MEUR
Sales contracts           3135      -38     -38      4072   127    127
Purchase contracts        2965       38      38      3773  -115   -115
Purchased options          980       -5      -5      1287    -7     -7
Written options           1039        7       7      1335     -      -

Natural gas derivates       June 30 2002         

                          Mill.th.  MEUR    MEUR  
Sales contracts             2568      43      43    
Purchase contracts          2650     -39     -39    
Purchased options            574      -       -    
Written options             -504       2       2    


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                      Q2/03   Q1/03   Q4/02   Q3/02   Q2/02    Q1/02

Power, Heat and Gas         718    1214   1 234     694     783      933
Electricity Distribution    160     199     184     138     156      162
Oil Refining and Marketing 1643    2075    1968    1794    1790     1531
Markets                     327     476     418     286     270      306
Other Operations             19      20      19      15      16       14
Eliminations               -432    -391    -567    -344    -356     -401
Total                      2435    3593    3256    2583    2659     2545
Discontinuing operations     -       -      34      22       23       26
Total                      2435    3593   3290    2605     2682     2571

QUARTERLY OPERATING PROFIT BY SEGMENTS

MEUR                      Q2/03   Q1/03   Q4/02   Q3/02   Q2/02    Q1/02

Power, Heat and Gas         136     293     284      28     156      149
Electricity Distribution     61      81      61      34      72      113
Oil Refining and Marketing   75     125      42      76      79       57
Markets                      15      -7     -19       2       4        2
Other Operations             -2     -17     -27     -17     -10      -12
Eliminations           	      1       -      -1       1       1       -1
Total                       286     475     340     124     302      308
Discontinuing operations      -       -      51      25     120       19
Total                       286     475     391     149     422      327