Events after the review period and estimate of future outlook
Fingrid’s international EUR 1.5 billion Medium Term Note Programme and debt issues are listed on the London Stock Exchange. On 9 January 2019, Fingrid listed the Medium Term Note Programme and debt issues on the Irish Stock Exchange (Euronext Dublin) in addition to the London Stock exchange. Dual listing enables the trading of debt issues and new debt issue listings on these two stock exchanges.
Fingrid Oyj’s Shareholders’ Nomination Board proposed to the Annual General Meeting to be held on 21 March 2019 that the number of members of the Board of Directors shall be five. The Nomination Board proposed the re-election of Juhani Järvi, Päivi Nerg, Anu Hämäläinen, Sanna Syri and Esko Torsti. The Shareholders’ Nomination Board proposed that the remuneration paid to the members of the Board of Directors remain unchanged.
Fitch Ratings downgraded Fingrid Oyj's Long-Term Issuer Default Rating (IDR) to ‘A’ from ‘A+’ and senior unsecured rating to ‘A+’ from ‘AA-’ on 28 January 2019. Fitch also affirmed a Short-Term IDR of ‘F1’. The outlook for the ratings is stable. The rating remains the highest assigned by Fitch to any regulated TSO in Europe.
Timo Kiiveri (M.Sc., MBA) was appointed director of the executive management group of Fingrid Oyj on 31 January 2019, effective 1 July 2019. His area of responsibility will be the company’s asset management.
Fingrid Group’s profit for the 2019 financial period, excluding changes in the fair value of derivatives and before taxes, is expected to decrease significantly from the previous year’s level. Fingrid announced on 3 October 2018 that it will decrease grid prices for 2019 by eight per cent on average.
Results forecasts for the financial year are complicated especially by the uncertainty related to grid income, ITC income and cross-border transmission income, and to reserve and loss power costs. These are particularly dependent on the variations in outside temperature and precipitation and changes in the hydrological situation in the Nordic countries, which affect electricity consumption and electricity prices in Finland and neighbouring areas and thus also grid transmission volumes. The company’s debt service capacity is expected to remain stable.