UPM Energy

UPM Energy creates value through cost competitive,

low-emission electricity generation and through physical electricity and

financial trading. UPM Energy is the second largest electricity producer in

Finland and a frontrunner in reshaping the Nordic electricity market.

UPM’s power generation capacity consists of hydropower, nuclear power and condensing power.​

​Our direction

  • Create value in electricity generation and physical and financial trading
  • Profitable growth on the Nordic CO2 emission-free electricity market

Our strengths

  • Cost competitive, low-emission electricity generation portfolio
  • Versatile asset base – nuclear power as base load capacity, hydropower as flexible capacity and condensing power as reliable peak load capacity
  • Strong competencies and value creation track record in physical and financial electricity trading
  • Proven capabilities in energy management services to both generating and consuming customers

UPM Energy value created

Important Image

Markets and drivers 

  • Electricity consumption in the Nordic countries is expected to remain stable. Demand is driven by household consumption, the commercial sector and industrial activity, and it is heavily dependent on temperatures.
  • In 2015, electricity consumption in the Nordic countries decreased slightly, primarily due to weather that was warmer than usual.
  • New capacity investments in the Nordic countries are driven by economics and influenced by regulatory policies and support schemes Therefore, capacity is mainly growing in subsidised renewables.
  • Due to current market conditions, existing generation capacity is decommissioned before the originally projected life span, e.g. it has been announced that Swedish nuclear capacity will be decommissioned earlier than expected.
  • Hydrological balance and wind in the Nordic countries impacts electricity supply and, therefore, electricity prices and price spreads between different price areas.
  • In the Nordic countries there are several different price areas; UPM Energy's assets are located in the Finnish price area only. Power markets across Europe are becoming more integrated due to new transmission lines.

Key figures

​2015​2014
​Sales, EURm​415​464
​Operating profit excl. special items, EURm​181​202
​% of sales​43.643.5
​Capital employed (average), EURm​2,716​2,903
​ROCE, excl.speciakl items, %​6.7​7.0
​Personnel on 31 December​73​80

 

Business areas

Driving for top performance in all business areas

UPM as an investment

Targeting attractive total return

Financial targets

Profitability improved in 2015