Vattenfall today presents its interim report for the first half of the year 2010.
· Net sales rose 18.0% during the second quarter, to SEK 49,713 million (42,128),
and 27.2% for the first half of the year, to SEK 120,370 million (94,656).
· Operating profit for the second quarter rose by SEK 52.4% to SEK 8,963 million (5,881), and increased for the first half of the year by 1.8%, to SEK 19,078 million (18,741).
· Profit after tax for the second quarter rose 97.5% to SEK 5,185 million (2,625), and decreased for the first half by 16.3% to SEK 8,972 million (10,716).
The earnings improvement is mainly attributable to higher electricity generation volumes for all types of energy generated by Vattenfall, as well as lower operating and maintenance expenses. Vattenfall’s electricity generation increased by 20.3% to 41.4 TWh (34.4). Overall, electricity prices had a slightly negative impact on consolidated profit, since the higher electricity prices achieved in the Nordic market were offset by lower prices achieved in Continental Europe. A large share of Vattenfall’s generation is hedged through contracts in the forward market. Currency movements affected operating profit negatively by SEK 0.6 billion.
Return on equity was 8.7%, and the return on net assets was 8.6% (last 12-month values). Vattenfall’s long-term required rate of return on equity is 15%.
“Despite improved quarterly earnings, profitability is insufficient. To meet our earnings targets it is of utmost importance that we ensure high availability in our generation plants, focus on our core businesses and improve efficiency throughout Vattenfall’s operations. We have launched a review of the Group’s strategy, including its organisation, cost structure and performance. This may lead to restructuring costs and possibly impairment charges – among other things as a result of a review of future investments. I intend to return later this year with closer details,” says Vattenfall’s CEO Øystein Løseth.
Vattenfall discloses the information provided herein pursuant to the Swedish Securities Market Act.
Commencing at 10:00 (CET) Øystein Løseth, CEO, and Dag Andresen, CFO, will host a conference call presenting the results, followed by a Question & Answer session. The conference call will be webcast.
Details regarding the Conference Call
To participate in the Conference Call please dial one of the following numbers a few minutes before 10:00 CET.
+44 (0) 20 7107 0611 (UK)
+46 (0) 8 5069 2105 (Sweden)
+33 (0) 1 7070 0543 (France)
+49 (0) 69 2 22220593 (Germany)
0800 949 45 17 (Netherlands Toll Free)
Replay: A recorded version of the conference call will be available one hour after the conference call for a further 72 hours. To request the replay please dial +44 207 108 6233 (number in UK) and enter the code 14135#.
Presentations slides: To download the presentation slides, please visit http://www.vattenfall.com / Investors / Presentations
To follow Vattenfall’s presentation on the Internet (audio and slides), please click on the link “webcast” which will be displayed on http://www.vattenfall.com. Please note that you will need “Real Player” or “Windows Media Player” to follow the presentations.
For further information, please contact:
Edvard Lind, acting Head of Media Relations, telephone +46 8739 56 74, +46 70 358 63 30.
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.
Vattenfall’s vision is to be a leading European energy company. Vattenfall’s main products are electricity and heat. Today, Vattenfall generates electricity, produces heat and supplies energy to several million customers in the Nordic countries and northern Europe. The major customers are industrial plants, energy companies, municipalities, property companies and housing associations. For further information, please see http://www.vattenfall.com. The media service section, including a picture archive and Vattenfall’s press releases, can be found under News & Comments.
Press release in pdf format