Vattenfall has reported a fall in underlying operating profit for the fourth quarter, due to negative contributions from its power generation and customer solutions business.
Vattenfall reported Skr4.45bn (€390m) in underlying earnings before interest and tax (EBIT) in the fourth quarter of 2023 compared with Skr12.5bn in the same period in 2022.
The electricity price was on average 60% lower in Vattenfall’s markets during 2023, compared with 2022.
Prices in the Nordics have been influenced by more precipitation and warmer weather, while in continental Europe, they have fallen sharply as a result of lower gas and coal prices.
Last year Vattenfall entered into an agreement for the sale of its wind power projects off the coast of Norfolk in the UK.
Vattenfall CEO Anna Borg said: “The divestment increases Vattenfall’s opportunities to invest in fossil-free projects that better suit our overall portfolio and risk appetite, while securing the future of the projects.
“The purchase price amounts to £1bn and, as a result of the sale, previous impairments and provisions are reversed.”
She added that the investment plan for the next two years amounts to a total of
Skr65bn (net), of which Skr41bn is dedicated to growth investments.
Borg said: “Significant investments are planned in fossil-free electricity generation, the electricity grid and charging infrastructure for electric vehicles.
“Major projects include the completion of the Vesterhav offshore wind farm in Denmark and the construction of the onshore Bruzaholm wind farm in Sweden.”