Vattenfall has posted strong third quarter results, despite a drop in Nordic electricity generation, which have contributed to a 25% rise in operating profit for the first nine months of the year.
Operating profit for the first nine months, excluding items affecting comparability, rose to SEK21.4 billion, up 25.4% compared to the same period in 2005. Net sales rose 14.2% to SEK105 billion.
During the third quarter, operating profit excluding items affecting comparability rose 6.9% to SEK3.3 billion. This can be credited primarily to a strong improvement in the German electricity generation operations, Vattenfall said.
The Nordic operations showed a lower operating profit – despite higher electricity prices and an earnings contribution from the combined heat and power assets acquired in Denmark – mainly due to a substantial loss of nuclear power generation, considerably lower hydro power generation due to low precipitation, and higher costs in the electricity sales and network operations.
However, on a more positive note, Poland has once again contributed with a strongly improved operating profit, mainly from distribution activities.
Vattenfall’s total electricity generation during the third quarter decreased by 2.5TWh to 34.5TWh, compared with 37TWh for the corresponding period a year ago. Hydro-power generation was 6.7TWh, nuclear power generation was 10.6TWh, and fossil-based and other power amounted to 17.2TWh.