Vattenfall moves to EUR 170m profit in Q3 2015

Swedish energy group Vattenfall AB swung to a net profit of SEK 1.6 billion (USD 188m/EUR 170m) in the third quarter of 2015 from a net loss of SEK 18.07 billion a year earlier.

Underlying operating profit increased to SEK 3.39 billion from SEK 2.75 billion, thanks to higher production and lower operating costs, the company said today.

Net sales were up to SEK 37.52 billion from SEK 34.73 billion as electricity generation rose to 41.2 TWh from 36.8 TWh. The company's wind division contributed SEK 1.39 billion of net sales, up from SEK 918 million in the same period of 2014. Wind power generation increased to 1.1 TWh from about 700 GWh, mainly as a result of the commissioning of the 288-MW DanTysk offshore wind farm in Germany and the 36.9-MW Clashindarroch onshore wind farm in Scotland.

In the first nine months of 2015, the company saw its net loss widen to SEK 22.23 billion from SEK 12.18 billion as it booked impairment losses in both periods. Underlying operating profit declined to SEK 14.09 billion from SEK 15.91 billion. Vattenfall said that market conditions remained challenging due to capacity surplus and low electricity prices, especially in the Nordic countries, which was squeezing its production margins and that it would continue with its cost-cutting efforts.

(SEK 1.0 = USD 0.118/EUR 0.106)

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