Sweden: Vattenfall Works on Increasing Share of Investments in Renewables

Despite a challenging year for the energy sector, Vattenfall presents a stable 2012 full year underlying operating profit for comparable units. Vattenfall will continue to streamline its operations, strengthen its financial position while maintaining its focus on sustainability.

• Net sales for 2012 decreased by 7.6% to SEK 167,313 million (181,040). For comparable units sales increased by 2%.
• The underlying operating profit decreased by 9.9% to SEK 27,747 million (30,793). The underlying operating profit for comparable units decreased by 1.6%.
• Reported operating profit rose 12.8% to SEK 26,175 million (23,209). Profit for 2011 was affected by net charges of SEK -7.6 billion. Profit for 2012 was affected by capital gains, impairment losses and other items affecting comparability amounting to SEK -1.6 billion, net.
• Profit for the year (after tax) rose 65.4% to SEK 17,224 million (10,416), of which the reduced corporate income tax rate in Sweden contributed SEK 3.5 billion.
• Electricity generation increased by 7.3% in 2012, to 178.9 TWh (166.7). 2012 was record year for Vattenfall’s electricity generation.
• The Board proposes a dividend of SEK 6,774 million, corresponding to 40% of profit for the year after tax. The dividend for 2011 was SEK 4,433 million.

Øystein Løseth, President and CEO, comments:

“2012 was a tough year for the entire European energy sector, and the industry is facing substantial challenges. Demand is still low as a result of the economic recession. At the same time, new capacity is being added, especially in renewable energy production, which has led to low electricity prices. I am therefore pleased to report a 2012 stable underlying operating profit for comparable units.

“During the year we continued to work according to the strategy that we launched at the end of 2010. The target of reducing our annual costs by SEK 6 billion has been achieved a year ahead of schedule. The availability in our plants improved and the power production was on a record level. We see continued difficult market conditions ahead, however, and are therefore continuing to further improve the efficiency of our operations and strengthen our financial position. In the current year we plan to carry out further cost savings.

“We are keeping our focus on reducing Vattenfall’s CO₂ exposure, and work is ongoing to free up sufficient capital to continue increasing the share of investments in renewable energy.”

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Press release, February 12, 2013; Image: Vattenfall