Vattenfall Shows Higher Underlying Operating Profit
Despite challenging market conditions Vattenfall grew its 2013 underlying operating profit. Electricity generation rose, with a high level of availability especially for nuclear power, and further reductions were made in operating expenses.
However, net profit for the year experienced a severe negative impact from impairment losses.
- Net sales rose 2.6% to SEK 171,684 million (167,313).
- The underlying operating profit rose 1.3% to SEK 27,900 million (27,530).
- Operating profit amounted to SEK -6,453 million (25,958). Profit was charged with SEK 30.1 billion inimpairment losses.
- Profit for the year (after tax) amounted to SEK -13,543 million (17,047). Profit for the year was charged with impairment losses of SEK 24.8 billion.
- Electricity generation increased by 1.6%, to 181.7 TWh (178.9).
- Due to the negative result after tax, the Board of Directors proposes – in accordance with Vattenfall’s dividend policy – no dividend for 2013.
Øystein Løseth, CEO of Vestas said “I am pleased to report a higher underlying operating profit for 2013, despite the challenging market conditions. The positive outcome from previous years’ forward hedges and successful cost-cutting measures have compensated for the negative effect of lower German wholesale electricity prices and higher costs for purchases of CO2 emission allowances, comments Øystein Løseth, President and CEO of Vattenfall.”
Løseth concluede by saying: “Vattenfall’s production portfolio, with a large share of hydro power, nuclear power and lignite-based power is very profitable, and through our efficiency improvement measures we have created a solid foundation for successfully continuing to carry out the shift to an environmentally sustainable energy production.”
To read the full report, please visit the following link.
Press release, February 4, 2014; Image: vattenfall