Third quarter 2025: Positive earnings development on the path towards fossil-freedom

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Click to watch Vattenfall's presentation of the Q3 report 2025

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

“Electricity prices in northern Sweden were over 50 per cent lower during the first nine months of the year compared to the corresponding period last year and negatively affected Vattenfall's revenues from hydro power. A strong hydrological balance, increased generation from wind power and warmer weather affected prices in northern Sweden. In Germany and the Netherlands, electricity prices rose due to higher gas prices and lower generation from wind power, which has also contributed to higher electricity prices in southern Sweden and in Denmark as the price level there is strongly linked to the continental market.

Significant improvement in underlying operating profit 

The underlying operating profit for the first nine months increased by SEK 5.3 billion to SEK 21.5 billion. This is primarily a result of improved development of price hedging in Vattenfall's continental markets, increased trading result and a higher contribution from nuclear and pumped storage operations. Lower contribution from hydro power in the Nordic region and lower contribution from the sales operations had an adverse effect. The comparison is affected by the fact that earnings of SEK 2.8 billion from the divested heat operations in Berlin was consolidated up to and including the beginning of May 2024.

In 2024, we divested the Norfolk wind power project and 49% of the Nordlicht wind power project, which gave rise to capital gains of SEK 9.7 billion. In addition, last year we had positive market value changes for the Group’s energy derivatives of SEK 9.8 billion. Overall, these one-off effects contributed to the profit for the period for the first nine months of last year being SEK 15.2 billion higher than this year.

Progress in strategic projects and customer solutions

During the third quarter, we took several important steps on the path towards fossil freedom. We have now deepened the work for new nuclear power on the Värö Peninsula by moving forward with two suppliers of modular reactors. These suppliers’ offerings are based on proven technology, and we believe that they will provide us with the best conditions for commissioning within a reasonable time and in a cost-effective manner, considering local circumstances. The selection process will now progress towards making the final selection of reactor supplier.

The Zeevonk project in the Netherlands, which includes both offshore wind power and floating solar power, has received approval to be developed in two phases. This adapts the project’s completion to the market’s changing demand for hydrogen. In the UK, we have decided to invest in the Clashindarroch II wind farm, which will be able to supply around 61,000 homes with fossil-free electricity. We have also commissioned Germany's largest facility that combines electricity generation from solar energy and sustainable agriculture in Tützpatz. To support our customers, we have, among other things, launched new solutions to enable them to optimise their consumption and signed agreements that make it possible to deliver biomethane to customers, thereby helping them reduce their emissions.

Crucial to securing Europe's competitiveness is moving from an energy system that is still largely based on fossil-based power to a system that is fossil-free. Vattenfall plays a central role in this transition together with our customers, suppliers and investors. To succeed, we need continued financial discipline and flexibility to adapt the operations based on market developments.”