Helen’s half-year report 2025: Strong profit performance and a significant decrease in emissions accelerate the clean transition

April–June 2025

• Consolidated net sales decreased year-on-year and amounted to EUR 245 million (EUR 272 million).
• Operating profit decreased and amounted to EUR 12 million (EUR 20 million).
• Electricity sales increased by 21 per cent to 1,114 GWh (918 GWh).
• Electricity distribution in Helsinki increased by 20 per cent to 1,220 GWh (1,018 GWh).
• Heat sales remained on a par with the comparison period at 1,021 GWh (1,026 GWh).
• Cooling sales decreased by 36 per cent to 44 GWh (69 GWh).

January–June 2025

• Consolidated net sales decreased year-on-year and amounted to EUR 773 million (EUR 903 million).
• Operating profit increased and amounted to EUR 111 million (EUR 80 million).
• Electricity sales increased by 20 per cent to 2,891 GWh (2,408 GWh).
• Electricity distribution in Helsinki increased by 18 per cent to 2,673 GWh (2,268 GWh).
• Heat sales decreased by 14 per cent to 3,235 GWh (3,740 GWh).
• Cooling sales decreased by 24 per cent to 80 GWh (105 GWh).

Consolidated key figures

Financial performance

Helen's net sales decreased by 14 per cent year-on-year, mainly due to a decline in the market price of electricity, and amounted to EUR 773 million (EUR 903 million). The average spot price of electricity in the first half of the year was EUR 39 (EUR 51) per MWh, which is significantly lower than the average price of the previous year. Net sales derived from heat production were lower than the previous year due to weak demand, which was caused by the mild weather. Net sales derived from electricity produc¬tion and electricity retail were also lower than the previous year due to the decline in the market price. Net sales from electricity transmission remained nearly on a par with the comparison period.

A key development with regard to the result of Helen’s operations is the restoration of the profit¬ability of district heating. This development has been driven by a decrease in production costs due to the reduced use of fossil fuels. The company’s profit¬ability was also significantly improved by the lower use of emission allowances. The profitability of elec¬tricity production was weakened by the decline in net sales and, in particular, the decline in the production price achieved by wind power. The electricity retail business returned to profitability. The profitability of electricity transmission remained at a good level.

Depreciation amounted to EUR 74 million (EUR 87 million). The depreciation reported for the previous year included accelerated depreciation of EUR 18 million associated with the discontinuation of coal-based production at the Salmisaari power plant.

Operating profit came to EUR 111 million (EUR 80 million). The significant improvement in operating profit was attributable to lower material costs due to the decreased use of fossil fuels. Comparable adjusted operating profit, excluding non-recurring items, was EUR 111 million (EUR 98 million). Comparable relative profitability improved year-on-year to 14 per cent (11 per cent). The reported return on capital employed remained on a par with the comparison period at 4 per cent (4 per cent).

Comments by CEO Olli Sirkka

The second quarter of 2025 was an exceptionally significant milestone on Helen’s path towards carbon neutrality, and we took several concrete steps towards a cleaner and more flexible energy system. The biggest single change was the closure of Helen’s last coal-fired power plant in Salmisaari when the heating season ended at the beginning of April. This historic act significantly reduces the CO2 emissions of energy production and marks a new, cleaner era for Helen, Helsinki and Finland as a whole. During the review period, Helen’s direct greenhouse gas emissions decreased by 46 per cent when compared to the corresponding period last year, and the share of district heat produced with fossil fuels fell from 62 per cent to 33 per cent.

The decision was made to use the premises of the decommissioned Salmisaari coal-fired power plant for the construction of a small modular reactor pilot plant. The pilot plant will simulate the reactor core's operation with an electrical resistor without nuclear fuel. The clean energy generated during the test operation will be utilised for heating in Helsinki. At the same time, our nuclear energy programme progressed according to plan, as we started a tendering process for the plant supplier and signed framework agreements for technical support with four expert partners. Potential plant sites were surveyed in the Helsinki metropolitan area, with the Vuosaari power plant area identified as the first site for a more detailed assessment. Surveys of other potential sites will also continue. The nuclear energy programme is an impor¬tant element of our long-term strategy to achieve non-combustion energy production.

The start of the construction of a hydrogen pilot plant in Vuosaari was another significant step. The plant can provide a flexible and versatile solution for energy storage and use in the future, and it is scheduled to be completed in 2026.

Although Helen’s net sales declined to EUR 773 million mainly due to the lower market price of electricity, operating profit increased to EUR 111 million. The improved operating profit is due to a change in the company’s cost structure, as the costs associated with fossil fuels and the emission allowances required for their use have significantly decreased. This is particularly reflected in the improved profitability of district heating. The reported return on capital employed remained on a par with the comparison period at 4 per cent.

Profit performance in the second quarter was supported by the efficient optimisation of electricity production and consumption. There were fewer instances of negative prices in the electricity market than in the previous year, which speaks to the increasing flexibility of the energy system. Helen has played an active role in this development by, among other things, regulating wind power production and electric boiler consumption in accordance with electricity prices. New wind and solar power projects will be completed this year, and the efficient optimisation of the whole will further stabilise our market operations.

During the second quarter, we announced that the customer prices for district heating will be reduced for the third consecutive time. The increasingly competitive prices are driven by investments in carbon-neutral heat production, which reduce the costs associated with district heating. The improvement in Helen’s profit performance in spite of lower customer prices demonstrates that sustainable and profitable business can go hand in hand.

Significant events in April–June

• The parent company closed the Salmisaari coal-fired power plant and discontinued the use of coal. The end of coal-based energy production means that Helen’s annual emissions will decrease by half when compared to 2024. The City of Helsinki's emissions will also decrease by approximately 30 per cent. At the national level in Finland, the change will reduce emissions by almost 2 per cent.
• Two new electric boilers at the Salmisaari produc­tion site went into commercial production. The boilers have a combined capacity of 100 MW.
• Construction began on the 3H2 pilot plant that will produce green hydrogen. Hydrogen production is scheduled to start in late 2026. The waste heat generated as a by-product of production will be put to use in Helen’s district heating network.
• The parent company published the district heating energy fees for July-December 2025 and the price forecast for January-June 2026. The average total price of district heating in 2025, excluding value added tax, will decrease by an estimated 6.1 per cent on average when compared to the previous year.
• The parent company started a tendering process for the selection of a supplier for a small modular reactor plant and signed framework agreements with a total of four partners for technical support for the nuclear energy programme.
• The parent company made progress in surveying potential site options for a small modular reactor plant in the Helsinki metropolitan area. Among other sites, the Vuosaari power plant area was identified as a potential plant site option on a preliminary basis, and an assessment of its suit­ability to serve as a platform for nuclear energy production was initiated. Surveys of other identified potential plant site options will also continue.
• The parent company made a decision on using the premises of the decommissioned Salmisaari coal-fired power plant for the construction of a small modular reactor pilot plant. No nuclear fuel will be placed in the pilot plant. Instead, an electrical resistor will be installed in the reactor core.
• In April, Helen deployed a new ERP system that creates the conditions for more harmonised and efficient operating processes.

Outlook

Gas storage facilities in Central Europe filled up, as expected, during the early summer. The storage levels are at over 50 per cent. The filling up of gas storage facilities in recent times has been supported by the tightening of trade relations between the United States and China, as it has practically halted the export of American liquefied natural gas to China and redirected deliveries to the European market. The current market situation appears stable but, after the price fluctuations seen in the spring, risk premiums are still reflected in gas pricing. The development of the conditions for hydropower production will be closely monitored in the Nordic countries during the summer and early autumn. The prevailing water surplus pushes electricity price expectations to a lower-than-usual level. The development of prices during the second half of the year will largely depend on the development of the conditions for hydropower production during the late summer and early autumn.

The global geopolitical situation is exceptionally tense, and changes may happen quickly and with unexpected consequences. The energy markets are not separate from these factors. Price fluctuations, supply reliability and the predictability of investments are increasingly closely linked to international developments. This operating environment emphasises Helen’s role as a stable and proactive market participant that can provide security not only to customers but also the entire energy system.

Helen operates in electricity markets in diverse roles as a producer, vendor and consumer, which reduces its exposure to the risks caused by market fluctuations. In its business operations, Helen also aims to take advantage of the opportunities presented by price fluctuations. By operating in accordance with its strategy, the company will also be increasingly able to balance fluctuations in prices in the future by increasing electricity consumption when supply is high, and reducing consumption when supply is low. The profit outlook for 2025 is expected to be slightly better than the previous year.

Helen’s investments in carbon neutral electricity, heat and cooling production are becoming concrete as new wind and solar farms and electricity storage facilities are built around Finland and existing production sites in Helsinki are transformed. The company’s production structure is shifting from combined heat and power generation to separate production, in which the main electricity production forms are hydro, nuclear, wind and solar power. Heat production is rapidly becoming increasingly electric. In the future, it will consist of heat pumps, electric boilers and sustainable bioenergy.

Green hydrogen will emerge as a new addition to Helen’s production palette. The preconditions for large-scale production will be investigated by means of a pilot plant. Assessments of the role of small-scale nuclear energy as part of a sustainable energy system are also moving forward.

It is important for Finland to maintain its position as a stable and predictable investment environment that will continue to have a sufficient supply of clean electricity in the future. Helen’s long-term efforts to develop the flexibility and supply reliability of the energy system support this goal. Increasing renewable energy production, piloting hydrogen solutions, developing small-scale nuclear energy and smart control form a whole that strengthens Finland’s energy infrastructure and improves the country's ability to respond to future uncertainties.

Helen's interim report for January–September will be published on 3 November 2025.