First six months 2025: Investments today – for a fossil-free future

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Click to listen to CEO Anna Borg and CFO Kerstin Ahlfont present the report.

Vattenfall’s President and CEO Anna Borg comments on the interim report for January-June 2025:

“Electricity prices in the Nordic region were lower in the first half of the year compared to the corresponding period last year and were affected by a strong hydrological balance, increased wind power generation and warmer weather. The low electricity price primarily affected revenues from Vattenfall's hydro power in northern Sweden. On the continent, electricity prices increased due to higher gas prices and lower generation from wind power.

The underlying operating profit for the six-month period increased by SEK 0.6 billion to SEK 15.3 billion. Better development of price hedges on Vattenfall's continental markets, improved trading result and a higher contribution from the distribution operations gave rise to the profit improvement. Lower achieved electricity prices in the Nordic region, reduced total electricity generation, and lower contribution from the sales operations had a counteracting effect. The comparison is negatively affected by the divestment of the heating business in Berlin (SEK -2.8 billion) which was consolidated up to and including the beginning of May 2024.

Profit for the period decreased by SEK 15.4 billion to SEK 10.8 billion. The comparison is primarily affected by capital gains and positive changes in fair value of the Group's energy derivatives in 2024. Adjusted for these effects, the profit for the period has increased.

Investments today – for a fossil-free future

In 2025, the energy landscape continues to be characterised by geopolitical unrest and economic pressure. This increasingly volatile global situation requires us to act powerfully and with perseverance. This means ensuring efficient, profitable and orderly operations here and now, while adhering to our long-term goal of a fossil-free future and lower carbon dioxide emissions. Fossil-free, affordable electricity is crucial for future competitiveness – both for Vattenfall and the entire European industry.

In line with this, Vattenfall continues to invest long-term, for example in Swedish hydro power, which is one of the most flexible energy sources. With an investment decision of SEK 630 million in the Harsprånget power plant in the Lule River, we are taking the next important step in modernising Sweden's largest hydro power plant. In parallel, the Muir Mhòr wind farm in the UK has been granted permission for onshore infrastructure, including a new substation. Muir Mhòr is one of the world’s first commercial scale floating offshore wind projects.

Vattenfall is also working intensively to realise new nuclear power on the Värö Peninsula at our existing Ringhals site. The ambition is to have a first reactor in operation in the mid-2030s at the earliest.

The pace of electrification is currently slower than expected, but the direction forward is clear. We have good conditions to expand the electricity system at the same time as the industry wants to change. Sticking to climate goals creates predictability for necessary investments. It's about facing uncertainty with action. Moving from the fossil era to the future”