Swedish Vattenfall posts an increase in profit for Q3 ‘07
Vattenfall, the Swedish state-owned power company, posted a Q3 increase of 28.4% to SEK 17,010 million (EUR 1844 million) in profit after tax largely due to reduction of German corporate income tax. This was despite a 7% loss of custom from its German market and problems with nuclear reactors, the company said in a statement on Wednesday.
Operating profits for January-September decreased by 2.8% to SEK 21,225 million (EUR 2301 million) with Q3 operating profits up by 37.9% to SEK 4,557 million (EUR 494 million), which the company attribute to an impairment loss of SEK 931 million for the German distribution unit for the corresponding period in 2006.
The company reported increased power generation from fossil fuels from 16.8 to 18.7 TWh and hydro from 6.7 to 7.7 TWh in Q3.
Vattenfall has had problems with two German nuclear plants with both plants currently off line. Krummel is currently undergoing the installation of a new transformer and Brunsbuttel requires replacement of anchors. The company reported that the financial impact of the plant outages was EUR 60 million.
The company also noted that inadequate communication with the public led to a loss of 200,000 customers in Germany, alongside prise increases which they issued in July. Vattenfall currently holds more than 80% of the market share in Berlin and Hamberg, although the country is seeing increased competition in the power market.
The company’s Swedish presence has increased, with market share increasing from 13–15% and its customer base now exceeds one million.
The company strategy remains the same, with an increasing focus on renewables, carbon capture and storage projects, and nuclear and combine heat and power plants. CA
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