Financial performance of Finnish technical networks

Marko Nokkala, Kaisa Finnilä, Jussi Rönty, Pekka Leviäkangas

Research output: Book/ReportReport


Finnish technical networks (roads/streets, ports, waterworks, rail, energy etc.) are mainly under public sector ownership and their financial performance has not previously been systematically analysed. This report performs a financial analysis for selected technical networks, utilities and operating companies deriving the most common financial performance indicators for each entity. The final focus is especially on the owners' financial returns. The ownership and governance model of an entity plays a lesser role in their financial performance than anticipated. What really matters is the business model, for instance for ports the specialized port seems to outperform non-specialized ones. The best performing entities are from the energy sector and ports, but all sectors and ownership models generate surplus cash flow to their owners. A challenge for most sectors has been the availability of data, since municipal departments do not issue separate financial statements. The analyses reveal that most entities have both a steady cash flow and a secure financial position, but the potential maintenance and investment backlog is not taken into consideration. Municipalities have been able to use their technical networks and utilities as a source of revenue and this has taken place even at times when the overall financial performance of the entity has been less satisfactory.
Original languageEnglish
Place of PublicationEspoo
PublisherVTT Technical Research Centre of Finland
Number of pages147
ISBN (Electronic)978-951-38-7505-3
Publication statusPublished - 2011
MoE publication typeNot Eligible

Publication series

SeriesVTT Working Papers


  • infrastructure networks
  • financial statement analysis
  • Profitability
  • revenue on invested capital

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