BUZZ-Fortum soars, deal with Google seen to boost long-term profit

** Fortum shares rise to the top of the STOXX 600 and are set for their best day since October 2008.

** ($1 = 0.8591 euros)

** Shares in Fortum rise 12.5% after the Finnish energy group signed a long-term power purchase agreement with Google.

** The deal secures nuclear power for Google investments for 22 years and will improve Fortum's comparable return on net assets by about 1.4 pp over time, the Finnish company says.

** Google says it will invest €13 billion ($15 billion) in Finland in a data centre and related infrastructure within the next two years.

** J.P. Morgan expects the agreement to lift Fortum's comparable operating profit by about €120 million-€130 million once the full 4 TWh volume is contracted.

** The implied deal price is above 80 euros per MWh, against 2028 forward prices of around 52 euros per MWh, JPM says.

** UPM-Kymmene rises more than 5%, with analysts pointing to the Finnish forestry group's 12 TWh of standalone power generation in Finland.

** "We considered it likely that a similar agreement could happen for UPM in the future as UPM is one of Finland’s largest electricity producers," Danske Bank analyst Antti Jukka Koskivuori says.