Vattenfall made a profit after tax of Skr6.6bn in the first three months of 2016, up from just under Skr5bn in the same period last year.
The Swedish company said increased production and lower costs were behind the increase.
Net sales were Skr45.9bn in the first quarter, up slightly on Skr45.4bn last year.
Vattenfall president and chief executive officer Magnus Hall said: “Good water supply for the hydro power plants, higher capacity at Ringhals 4 and greater availability at Forsmark 1 contributed to higher generation volumes.”
But the negative price trend with subsequently lower production margins is “putting continued pressure” on the company, he added.
“We have set a clear direction in our strategy and our strategic targets, where sustainability is integrated as a natural component.
“The agreement to sell our lignite operations shows that we are taking strong measures to adapt the portfolio in the right direction,” Hall said.
“Renewable energy production will make up an increasingly larger part of the portfolio and contribute to sustainable and profitable growth.”
Image: Vattenfall’s Kenitsh Flats offshore wind farm (Vattenfall)
