Vattenfall reports a lower result in the first quarter of 2025, mainly related to the sale of the heating operations in Berlin and the Norfolk projects in the first quarter of 2024. Adjusted for items affecting comparability and divestments, Vattenfall delivers a stable result. Lower volumes and significantly lower electricity prices in the Nordics were offset by positive contributions from Vattenfall's other European markets. During the quarter, we made a final investment decision regarding the Nordlicht 1 and 2 wind power projects and continued our efforts to enable new nuclear power.
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Vattenfall’s President and CEO Anna Borg comments on the interim report for January–March 2025:
”Electricity prices in the Nordics continued to decline in the first quarter of 2025 due to a strong hydrological balance, increased wind power generation and warmer weather. On the continent, however, we saw higher electricity prices due to higher gas prices and lower wind power generation.
The underlying operating profit amounts to SEK 8.5 billion, a SEK 2.2 billion decrease compared to the same period in 2024. However, the comparison is affected by the divestment of the heating business in Berlin (-2.3 billion SEK) which was consolidated up to the beginning of May 2024. Higher electricity prices on the continent and positive effects from price hedging on Vattenfall's continental markets had a positive impact on earnings. However, significantly lower achieved prices in the Nordics, decreased total electricity generation and lower contributions from the sales- and distribution business had an offsetting effect.
Profit for the period decreased by SEK 10.9 billion to SEK 6.0 billion compared to the first quarter of 2024. The comparison is primarily affected by the capital gain from the sale of the Norfolk projects in the UK (SEK 4.6 billion) and market value changes for the Group's energy derivatives (SEK 5.3 billion) during the first quarter of 2024.
We are assessing, prioritising and taking action – with fossil freedom in sight
The first quarter of 2025 was characterised by increased geopolitical and economic uncertainty, which has further complicated the investment environment related to the energy transition. And yet, climate change shows no signs of slowing down, quite the opposite. In this reality, it is crucial that we resolve our short-term challenges while adhering to our long-term ambitions, as reflected in our updated financial and strategic targets. It is about enhancing our competitiveness, efficiency and profitability by not only acting strategically in the long term but also pragmatically where and when required.
During the quarter, we initiated an assessment of our heating operations. District heating plays an important role in the energy transition and has good potential. At the same time, we see an increased need for investments and we need to assess and prioritise among our potential investments to ensure that we contribute to the energy transition most effectively.
In parallel, we continue to take important steps in renewable energy. During the quarter, the final investment decision was made for the offshore wind power projects Nordlicht 1 and 2 in Germany. As part of the decision, we repurchased BASF's shares in the projects. These wind farms are important to meet the growing electricity demand in Germany and to strengthen our portfolio of renewable electricity generation.
We are also making progress in new nuclear power. In March, the Swedish government presented a bill on state risk sharing. The government having a clear role in financing is a prerequisite to enable new nuclear power at Ringhals. Vattenfall is now preparing to apply for financing according to the new model.
We live in a time characterised by many challenges, but also opportunities. By combining financial discipline with investments in the future, we strengthen Vattenfall's long-term competitiveness and create value for our customers, our owner and the climate. Our direction is clear: we will enable the fossil freedom that drives society forward.”
Business highlights, January–March 2025
- Vattenfall made the final investment decision on the Nordlicht 1 and 2 offshore wind farms in the North Sea and purchased the remaining 49% of the shares in the projects
- Vattenfall assesses ownership of district heating operations
- The work with new nuclear continues and Vattenfall is now preparing to apply for financing according to the Swedish state’s risk sharing model
- Vattenfall and Svenska Kraftnät launched a pilot concept to enable faster electricity grid connections
- New power purchase agreement signed with chemicals group LyondellBasell of 450 GWh electricity annually from the Nordlicht 1 offshore wind farm
- Vattenfall secured permits for the Kattegat Syd offshore wind farm in Sweden and the Ourack onshore wind farm in the UK
Financial highlights, January–March 2025
- Net sales decreased by 11% to SEK 67,960 million (76,499)
- Underlying operating profit decreased by 21% to SEK 8,502 million (10,721)
- Operating profit decreased by 60% to SEK 8,367 million (20,755)
- Profit for the period decreased by 65% to SEK 5,961 million (16,879)
First quarter 2025
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