Strong hedge shields Finland's Fortum from Nordic power price crash

摘要

Fortum’s high level of hedging cushioned the Finnish utility from the impact of an 84% drop in Nordic spot prices in the second quarter of 2020, Fortum said Aug. 19 in a results statement. As of June 30, Fortum had hedged 85% of its Nordic generation at Eur34/MWh ($40.58/MWh) for the remainder of 2020, and 65% of 2021 Nordic generation at Eur33/MWh. This compared with an average Nordic spot price of Eur5.61/MWh for Q2, down from Eur35.64/MWh in Q2 2019. Fortum subsidiary Uniper, meanwhile, had hedged its Nordic generation to 90% at Eur29/MWh for the remainder of 2020, 80% of 2021 generation at Eur27/MWh, and 40% of 2022 at Eur24/MWh.