Sweden: Vattenfall’s Profit Increases to USD 129 Million

Sweedish energy company, Vattenfall, has released second quarter 2012 results.

Net sales amounted to SEK 36,703 million (40,443) for the second quarter and SEK 85,697 million (92,311) for the first half of the year. For continuing operations, i.e., excluding divested operations primarily in Belgium, Finland and Poland, sales rose by slightly more than 1% during the second quarter and by slightly more than 4% for the first half of the year.

Operating profit reached SEK 4,775 million (-3,239) for the second quarter and SEK 23,731 million (8,603) for the first half of the year. Operating profit for the second quarter and first half of 2011 was negatively affected by impairment losses and increased provisions, together totaling SEK 10.2 billion, as a result of Germany’s decision to phase out the country’s nuclear power.

The underlying operating profit amounted to SEK 4,818 million (5,382) for the second quarter and SEK 16,493 million (17,676) for the first half of the year. For continuing operations, i.e., excluding divested operations, the underlying operating profit decreased by slightly more than 2% for the second quarter, but increased by approximately 4% for the first half of the year.

Profit (after tax) increased to SEK 877 million (-3,235) for the second quarter and to SEK 14,732 million (3,968) for the first half of the year.

CEO’s comments:

– Thanks to successful work on improving the efficiency of operations, price hedging and higher production volumes, Vattenfall is reporting a stable underlying operating profit for the second quarter, despite considerably lower electricity spot prices than in the corresponding period in 2011. The market outlook for demand and electricity prices remains weak, which is putting pressure on our earnings capacity. We are addressing this through continued efficiency improvement work in all of our operations and processes, and by broadening and improving our customer offerings. The divestments that we carried out in 2011 and at the start of this year have strengthened our financial position, which is beneficial in the prevailing market conditions, says Øystein Løseth, CEO of Vattenfall.

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Offshore WIND staff, July 31, 2012; Image: vattenfall