Vattenfall’s wind portfolio recorded earnings before interest and tax (EBIT) in the first quarter of the year of just over Skr2bn (€194m), up from the Skr1.4bn in the same period of 2019, according to new results.
The wind unit’s earnings before interest, tax depreciation, amortisation and (EBITDA) reached Skr3.5bn, compared with Skr2.7bn, while net sales and underlying operating profit also increased due to new capacity and higher production from strong wind, said the developer.
Higher production in particular came from the 407MW Horns Rev 3 offshore wind farm off the west coast of Denmark, the company said.
Vattenfall chief executive Magnus Hall said: “Thus far we have not seen any significant impact from COVID-19 on our renewable energy investment projects.
“On the whole, however, today we have a very uncertain economic situation, which requires stricter prioritisation of projects. For example, we have decided to not participate in the Hollandse Kust Noord offshore wind tender in the Netherlands.”
In its first quarter 2020 results Vattenfall recorded an EBIT of Skr12bn, a 51% increase compared with the same period last year.
In February the Danish Energy Agency granted final approval for Vattenfall’s 605MW Kriegers Flak offshore wind farm, expected to complete in 2021.
Hall said: “Vattenfall has had good preparedness to meet the pandemic that we are currently experiencing.
“We have seen a substantial drop in prices in the electricity markets. It began back in January, driven by an unusually warm winter with a high level of precipitation and strong winds.
“In pace with the spread of COVID-19 around the world, the trend strengthened with a decline in electricity consumption resulting from the shutdown of society and poorer economic outlook.
“For Vattenfall, the negative impact of the large price declines during the quarter was largely countered by price hedges, but the effects can still be clearly seen in the quarterly result.”
After the end of the quarter Vattenfall’s board of directors revised its previous dividend proposal for 2019 from Skr7.2m to Skr3.6m. The proposal was adopted by the annual general meeting.