Increased operating profit and higher electricity generation volumes
Vattenfall today presents the Group's interim report for the first nine months of 2010.
- Net sales in the third quarter decreased by 16.9% to SEK 37,665 million (45,346) but for the 9-month period increased by 12.9% to SEK 158,035 million (140,002).
- Operating profit increased by 65.4% to SEK 5,829 million (3,524) for the third quarter and by 11.9% to SEK 24,907 million (22,265) for the 9-month period.
- Profit (after tax) rose by 181.2% to SEK 1,749 million (622) for the third quarter but decreased by 5.4% to SEK 10,721 million (11,338)for the 9-month period.
The third quarter is the first quarter in which the corresponding quarter in 2009 includes Nuon.
Operating profit improved by SEK 2,305 million. The earnings improvement is mainly attributable to lower fuel costs, lower operating and maintenance expenses, lower depreciation and lower sales and administration costs.
Lower electricity prices achieved had a negative effect on consolidated operating profit by approximately SEK 1.6 billion.
Higher prices achieved in the Nordic operations were offset by lower prices achieved in Continental Europe. A large share of Vattenfall’s generation is hedged through contracts previously entered into in the forward market. Currency movements affected operating profit negatively by SEK 0.4 billion.
Vattenfall’s electricity generation increased by 1.3 TWh to 36.8 TWh (35.5), mainly as a result of higher nuclear power generation in Sweden.
The profit for the period (after tax) increased by 181.2% to SEK 1,749 million (622).
The return on equity was 9.3% and the return on net assets was 9.2% (last 12-month values). Vattenfall’s long-term required rate of return on equity is 15%, over a business cycle (5–7 years). The target return on net assets is 11%.
“During the quarter, we launched our new strategic direction and are now taking the next step in the company's development. The objective is to strengthen the balance sheet, increase profits and value, and to prepare Vattenfall for further growth in the future. Compared with a year ago, Vattenfall is reporting a strong earnings improvement in the third quarter,” says Vattenfall’s CEO Øystein Løseth.
Vattenfall discloses the information provided herein pursuant to the Swedish Securities Market Act.
The full Q3 report is available in English at http://www.vattenfall.com (select “Investors”).
Conference Call for analysts and investors
Commencing at 10:00 (CET) Øystein Løseth, CEO, and Jonas Florinus, acting CFO, will host a conference call presenting the results, followed by a Question & Answer session. This presentation and the Question & Answer session will be in English. The conference call will be audiocast.
To participate in the Conference Call please dial one of the following numbers a few minutes before 10:00 CET.
+44 (0) 203 059 58 62 (UK)
+46 (0) 85 051 0031 (Sweden)
+33 (0) 170 918 706 (France)
+49 (0) 69 2 22 22 05 93 (Germany)
0800 949 45 17 (Netherlands Toll Free)
Participants from other countries are asked to use the Swedish number.
Presentation slides: To download the presentation slides, please visit www.vattenfall.com / Investors / Presentations
Audiocast: To follow Vattenfall’s presentation on the Internet (audio and slides), please click on the link “audiocast” on http://www.vattenfall.com(http://www.vattenfall.com/). Please note that you will need “Real Player” or “Windows Media Player” to follow the presentations.
Vattenfall’s president and CEO Øystein Løseth and Jonas Florinus, acting CFO, will present the results to journalists at a press conference commencing at 11.30 CET at Vattenfall Head Office, Sturegatan 10, Stock-holm, Sweden. The press conference will be in English.
Join the press conference by telephone
Journalists unable to attend in Stockholm can call in to the press conference and participate by phone using the same telephone numbers as above. Call in a few minutes before 11.30 for instructions on how to put questions through to the conference.
Presentation slides: To download the presentation slides, please visit www.vattenfall.com / Press & News
Replay: The press conference will be recorded and available as a podcast approximately one hour after the press conference on www.vattenfall.com / Press & News.
Download press release: (PDF 88kB)
For further information, please contact:
Ivo Banek, Head of Media Relations, mobile +49 171 866 21 54
Klaus Aurich, Head of Investor Relations, phone +46 (0) 8 739 65 14, mobile +46(0) 70 539 65 14.
From Vattenfall's Press Office, telephone: +46 (0) 8 739 50 10, [email protected]