Vattenfall reports profit after tax of SEK 8.2 billion and an underlying operating profit of SEK 9.1 billion for the first quarter of 2014.
The company reported high availability in all production plants – nearly 100% for nuclear power, with a significant increase in wind power generation. Several divestments were carried out, including the electricity grid in Hamburg, which generated a capital gain of approximately SEK 3 billion.
Summary of first quarter 2014
Investments in wind power increased and accounted for nearly 40% of investments in electricity generation. This pertained most notably to the construction of the Dan Tysk wind farm in Germany, one of Vattenfall’s largest wind power investments ever.
On 1 January 2014 a new, regional Group structure was implemented – forming the Nordic and Continental/UK regions. This split gives the operations greater opportunities to act according to the specific conditions in the respective markets.
Vattenfall’s ongoing cost-cutting programme worth SEK 4.5 billion for the years 2014–2015 is on track, which compared with the cost base in 2010 would entail a cost reduction of approximately 25% by year-end. It is also positive to note that customer satisfaction continued to improve in Sweden and Finland during the quarter.
“To meet our goals – both our financial and sustainability targets – we must continue to do everything we can to further streamline and reprioritise our operations and deliver under our cost-savings programmes. We continue to face tough market conditions, and in the near and medium terms we cannot see any fundamental improvement in demand and prices for our products and services,” concludes Øystein Løseth, President and CEO of Vattenfall.
(1 Swedish Krona = 0.11 Euro)
Press Release, April 29, 2014; Image: vattenfall