Stable underlying operating profit for the first nine months of the year - continued challenges for the industry

Vattenfall reports a stable underlying operating profit of nearly 21 billion SEK for the period January-September 2013. Cost-cuttings and price hedging have contributed to the result while higher costs for CO2 emission allowances have had a negative impact.

Summary of the third quarter and the nine month period:

• Net sales rose by 9.9% to SEK 36,997 million (33,679) for the quarter and by 3.8% to SEK 123,922 million (119,376) for the nine month period.

• The underlying operating profit decreased by 10.6% to SEK 3,999 million (4,474) for the quarter while the underlying operating profit rose by 0.4% to SEK 20,949 million (20,875) for the nine month period.

• Operating profit amounted to SEK 4,818 million (-2,778). The nine month operating profit was SEK -10,292 million (20,861) as a result of impairment losses of SEK 29.7 billion during the second quarter of 2013.

• Profit for the period (after tax) amounted to SEK 1,538 million (-3,975) for the quarter and  SEK -15,526 million (10,705) for the nine month period. The impairment losses during the second quarter of 2013 resulted in a charge against profit of SEK 24.5 billion after tax effects.  

• Electricity generation was essentially unchanged, at 40.0 TWh (39.7) for the quarter, but increased by 3.7%, to 133.8 TWh (129.0) for the nine month period.

CEO’s comments:
– Wholesale electricity prices continue to be weak, which is putting pressure on profitability for Europe’s power producers. However, thanks to cost-cutting and previously contracted price hedges, Vattenfall is able to report a stable underlying profit for the period January–September 2013. Vattenfall is also showing strong cash flow after investment. The reported profit in the half-year interim report was charged with impairment losses of nearly SEK 30 billion. Excluding these impairment losses and other items affecting comparability, the return on capital employed was 9.5%, says Øystein Løseth, Vattenfall President and CEO.

– The work on splitting up Vattenfall’s operations into two regions – the Nordic countries and Continental Europe/UK – is progressing according to plan, and the new organization will take effect on 1 January 2014. The new geographic organizational structure will improve our opportunities to meet the varying conditions and challenges in the respective markets, says Øystein Løseth.

The full report can be downloaded from: vattenfall.com. 

For more information, please contact:
Ivo Banek, Head of Communications, telephone +46 (0) 8 739 50 10
Klaus Aurich, Head of Investor Relations, telephone +46 8 739 65 14, mobile +46 70 539 65 14

From Vattenfall’s Press Office, telephone: +46 (0) 8 739 50 10, press@vattenfall.com

Vattenfall discloses this information pursuant to the Swedish Securities Market Act.

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