Vattenfall's sales, profit increase in Q1

Swedish state-owned utility Vattenfall AB today reported increases in first quarter revenue and profit, with its wind segment also recording improved results.

The company's performance was driven by higher electricity generation, due to increased hydro power generation, and higher electricity prices in the Nordic region, attributed mainly to cold weather, as well as by customer growth, especially in Germany. Net sales and underlying operating profit were both up by 11% to SEK 44.3 billion (USD 5.2bn/EUR 4.2bn) and SEK 9.4 billion, respectively. Profit for the period climbed to SEK 4.2 billion from SEK 3.8 billion in the first quarter of 2017.

The wind business increased its underlying operating profit to slightly more than SEK 1 billion from SEK 858 million a year ago, while net sales grew to almost SEK 3 billion from SEK 2.5 billion. The rises reflect mainly newly added capacity in 2017 and positive price effects, the company said. Electricity generation stayed at 2.2 TWh as capacity additions were offset by lower winds and curtailments.

Vattenfall highlighted its winning of the Dutch tender to build what will be the first subsidy-free offshore wind farm, Hollandse Kust Zuid 1 and 2 with planned capacity of 700 MW–750 MW, and its installation of the world's largest turbine, a 8.8-MW MHI Vestas machine, at its European Offshore Wind Deployment Centre (EOWDC) in Aberdeen Bay, UK.

The company plans to invest SEK 13 billion in new wind capacity in 2018-2019.

(SEK 10 = USD 1.162/EUR 0.955)

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