Vattenfall’s Profit Hit by Lower Production and Falling Electricity Prices

Lower production volumes and continued falling electricity prices had a negative effect on Vattenfall’s earnings during the first quarter.

Profit after tax fell to SEK 4,987 million (EUR 531.37 million) compared to the same period last year of SEK 8,205 million (EUR 874.10 million).

However, the work towards a more sustainable energy portfolio continued, and wind power made up the single largest investment area during the quarter.

“During the quarter Vattenfall was awarded the concession to build and operate the Horns Rev 3 offshore wind farm in Denmark, which will supply electricity corresponding to the needs of 450,000 households from 2019.

“This is a prime example of the major investments we are making in wind power, which totalled SEK 2 billion during the quarter and thereby accounted for Vattenfall’s single largest investment area,” says Magnus Hall CEO of Vattenfall.

Furthermore, Vattenfall’s new Group structure with six cross-border Business Areas took effect on 1 April: Heat, Wind, Customers & Solutions, Generation, Markets, and Distribution. The aim of the new organisation is to enhance Vattenfall’s business and earnings focus, and to take advantage of cross-border synergies.

“At the same time, we need to continue lowering our costs and will reduce the number of employees corresponding to approximately 1,000 full-time equivalents, of whom about half will be in staff functions. The new organisation creates conditions for a strong northern European company,” concludes Hall.