Sweden: Vattenfall’s Q1 Profit Up 92 pct

Vattenfall announced the results for the first quarter 2012.

”During the quarter we successfully concluded our divestment programme of our noncore assets. In January we received a combined total of SEK 21 billion for the sale of operations in Belgium, Finland and Poland. We have thereby been able to reduce the Group’s net debt by a corresponding amount. The divestments were made at terms that we are very satisfied with – the capital gain from the sale of the Finnish electricity distribution and heat business was SEK 8.1 billion.

 Excluding capital gains and other items affecting comparability, Vattenfall is reporting a solid underlying operating profit, despite the fact that electricity spot prices in the Nordic countries were considerably lower than during the same quarter in 2011.

 Our work on improving the efficiency of our operations is advancing faster than planned, and our ambition now is to achieve savings of SEK 6 billion by year-end 2012, which is one year ahead of the original plan. The trend in demand and electricity prices is expected to remain weak in the years immediately ahead, which means that we must focus even harder on lowering our costs and improving the availability of our production plants”, says Øystein Løseth, CEO of Vattenfall.

Vattenfall has reached an agreement to sell its interest in the pilot project involving supply of biomass in Liberia that is being conducted through Buchanan Renewables Fuel. Vattenfall is a minority owner in the project. Due to the sale of its interest Vattenfall recognises in the first quarter an impairment loss and makes provisions with a total of SEK 1 341 million.

• Net sales decreased by 5.5% to SEK 48,994 million (51,868)
• Operating profit rose 60.1% to SEK 18,956 million (11,842)
• The underlying operating profit, i.e. operating profit excluding items affecting comparability,
• decreased by 5.0% to SEK 11,675 million (12,294)
• For continuing operations, i.e. excluding divested operations, the underlying operating profit
• increased by 3.0%
• Profit for the period (after tax) rose 92.4% to SEK 13,855 million (7,203)

[mappress]

Offshore WIND staff, May 03, 2012; Image: vattenfall