Fortum Advances to 10-Month High on Windfall Cut: Helsinki MoverKasper Viita
Fortum Oyj, 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.