Vattenfall has signed off on a raft of changes to financial targets that it says reflect a renewable energy market that has “matured considerably” and is providing more stable returns.
Among the changes the Swedish utility has adjusted net debt goal to 22–27% from 22–30% previously.
The developer has also approved the removal of its net debt/equity ratio and reduced the profitability target to 8% from 9%.
Vattenfall’s dividend is now set at 40–70% of profit after tax, compared with 40-60% previously.
The changes were made at an extraordinary general meeting on Tuesday.
Vattenfall chief executive Magnus Hall said: “Looking at new assets in which we will invest in the future, mostly renewables, returns are lower than in the past.
“As such, the goals reflect our strategy of continuously delivering energy solutions that are better for the climate.”
The new financial targets, which were proposed by the Swedish state in November, replace the old targets set in November 2012.
Image: Vattenfall
Vattenfall OKs new finance goals
Targets reflect lower risks and more stable returns from renewables markets
By EBS