Energia
FINGRID GROUP – MANAGEMENT'S REVIEW 1 JANUARY - 31 MARCH 2021
Fingrid Oyj
Stock Exchange Release 23 April 2021 at 11:00 EET
Fingrid Group – Management's Review 1 January - 31 March 2021
Fingrid follows a six-month reporting period as referred to in the Securities Markets Act and publishes Management Reviews for the first three and nine months of the year; the Management Reviews contain key information illustrating the company's financial and other development.
The information presented in the Management's Review relates to the Fingrid Group's performance in January-March 2021 and the corresponding period of 2020, unless otherwise indicated. The figures presented here have been drawn up in accordance with International Financial Reporting Standards (IFRS). The Management's Review is not an interim report in accordance with the IAS 34 standard. The figures are unaudited.
Review by the President & CEO: “ Grid vision paves the way for grid investments worth EUR 2 billion during this decade”
The weather conditions during the first quarter were normal. Long spells of below-zero temperatures increased the of electricity consumption, and also the hydrological situation throughout the Nordic countries has returned closer to normal from last year's exceptionally high level. The consumption of electricity increased during the period under review compared to the corresponding period last year, which was marked by exceptionally warm weather. As a result, the company's turnover and result improved compared to the previous review period. Turnover growth came from the volume, as our grid service fees will remain unchanged from 2020 to 2021.
The increased consumption of electricity, coupled with transmission restrictions, resulted in significant area price disparities in the Nordic countries. The imports from Sweden to Finland were high and often reached the maximum level during daytime. This caused major price differences between Finland and particularly northern Sweden. The price differences resulted in significant congestion income for Fingrid, which will be used for future investments to improve the operation of the markets. Electricity imports from Russia increased due to the higher electricity prices in Finland, generating more cross-border transmission income.
We are building transmission lines and substations at dozens of sites. Based on our long-term grid vision, we estimate that the main grid will require at least EUR 2 billion in grid investments during this decade to cover the tremendous increase in capex needed for electricity consumption and production, to enable the ongoing electrification of Finland. Along with this, we will develop the electricity market and our grid operations to meet future needs.
Key figures
Main business events
Events after the review period
On 7 April 2021, Fingrid Oyj's Annual General Meeting approved the financial statements for 2020 and decided on the dividend payment. The first instalment of the dividend, totalling EUR 89,980,000.00, was paid on 12 April 2021. Juhani Järvi continues as Chair of the Board of Directors, and Päivi Nerg continues as Vice Chair of the Board. The other Board members are Hannu Linna, Sanna Syri and Esko Torsti.
The company has not changed its earnings guidance from what was stated in the Financial Statements Bulletin on 5 March 2021.
Further information:
Jukka Ruusunen , Fingrid Oyj, President & CEO
+358 30 395 5140 or +358 40 593 8428
Jan Montell , Fingrid Oyj, Chief Financial Officer
+358 30 395 5213 or +358 40 592 4419
Fingrid is Finland's transmission system operator. We secure reliable electricity for our customers and society and we shape the clean and market-oriented electricity system of the future.
Fingrid delivers. Responsibly.
www.fingrid.fi
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