Fortum Advances to 10-Month High on Windfall Cut: Helsinki Mover

Fortum Oyj (FUM1V), the biggest utility in Finland, gained to a 10-month high in Helsinki as the government decided to cut the amount it plans to raise from a windfall tax.

The company climbed 3.4 percent to 15.82 euros, the highest level since May 15, by 6:02 p.m. in the Finnish capital. Trading was 4.4 million shares, 70 percent above the three-month daily average. Planned revenue from the tax was lowered to 50 million euros ($65 million) a year from 170 million euros, Prime Minister Jyrki Katainen said after talks on spending.

“For Fortum, this means a relief of about 60 million euros annually,” Karri Rinta, an analyst at Svenska Handelsbanken AB, said by phone. “This shows that the political risk involving utilities in the Nordic countries is clearly lower than in Southern Europe and perhaps elsewhere in the region.”

Fortum generates electricity from nuclear and hydropower.

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.