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Dan Lindstroem, Fortum Oyj (FUM1V)’s head of proprietary trading, left Finland’s biggest utility after cost cuts prompted staff reductions in energy trading.
Lindstroem left the company last month, before Fortum merged its asset-backed trading and proprietary trading units into a trading and portfolio optimization business on Feb. 15, Toni Kekkinen, head of the new unit, said today by telephone.
“This will not affect trading itself, and we will continue to buy and sell energy commodities to the same extent as before,” Kekkinen said. Fortum will “focus on asset-backed trading, resulting in an unspecified number of cuts to trading staff in Stockholm and Finland.”
Fortum started a cost-cutting program that seeks to improve cash flow by more than 1 billion euros ($1.3 billion) over the next two years after “unacceptable” earnings that missed analyst estimates for a third consecutive quarter, Chief Executive Officer Tapio Kuula said when presenting third-quarter earnings in October. Fourth-quarter sales rose 10 percent to 1.83 billion euros, beating a mean forecast for 1.72 billion euros, according to 15 analyst estimates compiled by Bloomberg.
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