Sweden: Vattenfall Reports Stable Q1 Results Despite Challenging Market Conditions

Vattenfall reports a stable underlying first quarter 2013 operating profit despite challenging market conditions. Increased electricity generation and high nuclear power availability contributed to the result. Vattenfall continues to improve operational efficiency.

• Net sales rose 1.4% to SEK 49,659 million (48,994)
• The underlying operating profit was stable and amounted to SEK 11,625 million (11,629)
• Profit for the period (after tax) was SEK 6,195 million. The 2012 first quarter profit included a capital gain of approximately SEK 8.1 billion due to the sale of Vattenfall’s electricity distribution and heating business in Finland.
• Electricity generation increased by 7.9% to 52.2 TWh (48.4).
• Vattenfall’s nuclear power plants, Forsmark and Ringhals, achieved combined availability of a full 97.1% during the quarter and generated a total of 14.5 TWh of electricity

“The market conditions during the first quarter of the year were challenging, but thanks to the solid efforts by our employees and a favourable generation mix, Vattenfall can report an underlying operating profit that is level with the first quarter of 2012. Higher electricity generation volumes and higher sales of gas and heat have compensated for lower electricity prices achieved and higher fuel costs. The market outlook remains weak, and we are therefore continuing to improve the efficiency of operations and reduce our costs. During the past quarter we announced the potential departure of approximately 2,500 employees from Vattenfall as the company works to lower costs by SEK 3 billion in 2013 and by another SEK 1.5 billion in 2014,” says Øystein Løseth, President and CEO.

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Press release, May 3, 2013; Image: Vattenfall