Vattenfall with Lower Generation Volumes but Relatively Good Earnings

Vattenfall has recently presented its interim report for the first half of 2009:

  • · Net sales rose 19.5% during the second quarter, to SEK 42,128 million (35,259),
  • and 17.3% for the first half of the year, to SEK 94,656 million (80,663).
  • · Operating profit for the second quarter decreased by SEK 6.9% to SEK 5,881 million (6,316), and increased for the first half of the year by 5.6%, to SEK 18,741 million (17,742).
  • · Profit for the period after tax decreased by 35.1% for the second quarter to SEK 2,625 million (4,043), and by 4.6% for the first half of the year to SEK 10,716 million (11,227).

“The recession has led to falling electricity prices and lower demand from industrial customers; however, Vattenfall’s earnings have been affected relatively little compared with companies in other industries. Vattenfall continuously hedges its electricity generation through sales in the futures market, which has had a favorable impact on operating profit. Currency movements have also had a favorable earnings impact. However, lower electricity generation volumes and higher operating and maintenance expenses have had a negative earnings impact. In total, operating profit for the second quarter fell 6.9% compared with the same period a year ago. At the same time, generation volumes decreased by 12%. Against the backdrop of the difficult market situation and lower generation volumes, I regard the result for the period as relatively good. We have had favourable development in the number of customers as well as in customer satisfaction,” says Vattenfall’s CEO Lars G Josefsson.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>