Finnish utility Fortum Q3 profit lags forecast
Adds background, detail in paragraphs 4-6
HELSINKI, Oct 29 (Reuters) -Finnish utility Fortum FORTUM.HE reported on Tuesday a bigger-than-expected drop in July-September operating profit and said it would invest 100 million euros in the decarbonisation of its Czestochowa heat and power plant in Poland.
Operating profit fell to 123 million euros ($133 million) in the fiscal third quarter from 251 million a year earlier on lower spot prices, against a median forecast of 157 million euros in a company-provided poll.
"In July and August, Nordic spot prices were pressured by high precipitation, good nuclear availability and increasing wind and solar output," Fortum CEO Markus Rauramo said in a statement.
Fortum said it would invest around 100 million euros ($108 million) to retrofit its Polish combined heat and power plant with biomass technology instead of using coal.
As a result, the company's remaining coal capacity will decrease by 0.1 GW to 0.9 GW, while it aims to exit coal in all its operations by the end of 2027, Fortum said.
Rauramo said the state-controlled utility was on track with a goal to lower its recurring fixed costs by 100 million euros by the end of 2025, expecting to reach 50 million euros in cost reductions by the end of this year.
($1 = 0.9250 euros)
Reporting by Anne Kauranen in Helsinki, editing by Terje Solsvik
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