Finnish Fortum Eyes Heating Cos Sale

Fortum is mulling the sale of its district heating and cooling businesses in Joensuu in its home country of Finland as well as in Parnu (100% ownership) and Tartu (60% ownership), Estonia, it said June 25. It believes they could "benefit from a different ownership structure. These business operations are entering into a more stable phase as measures to improve operational efficiency and the transformation to lower carbon intensity has largely been done."

In 2018, Fortum produced about 550 GWh of heat and 240 GWh of power in Joensuu. The business generates pre-tax earnings of €20mn ($23mn). In Estonia, its share of the output was about 530 GWh of heat and 280 GWh of power with pre-tax earnings of about €30mn, including subsidies for renewable energy.

There is no certainty whether the assessment will result in any transactions and Fortum will inform the market if and when appropriate, it said.