Vattenfall’s 2014 year-end report: Continued efficiency improvement and shift towards renewable energy production

• Net sales amounted to SEK 165,945 million (172,253) for the full year and SEK 48,725 million (47,156) for the fourth quarter.
• The underlying operating profit was SEK 24,133 million (28,135) for the full year, and SEK 8,223 million (7,006) for the fourth quarter.
• Operating profit totalled SEK -2,195 million (-6,218) for the full year and SEK 7,045 million (3,894) for the fourth quarter.
• Profit after tax amounted to SEK -8,284 million (-13,543) for the full year and SEK 3,900 million (1,983) for the fourth quarter.
• Electricity generation was 172.9 TWh (181.7) for the full year and 46.2 TWh (47.7) for the fourth quarter.
• The Board of Directors proposes, in accordance with Vattenfall’s dividend policy, that no dividend be paid for 2014.

“2014 was an eventful and challenging year that was characterised by weak demand, a surplus of production capacity and falling electricity prices. Demand was further dampened by warm weather,” said Magnus Hall, President and CEO of Vattenfall in his comments on the year-end report.

For the full year 2014, Vattenfall reported an underlying operating profit of SEK 24.1 billion, which is SEK 4 billion lower than in 2013.

“Lower production margins and lower production volumes were partly compensated by cost-cutting measures. During the last four-year period we have carried out measures which, compared with the cost base in 2010, have resulted in savings of SEK 13.7 billion on a yearly basis,” commented Magnus Hall.

Against the background of adverse market conditions, Vattenfall recognised combined impairment losses of SEK 23.8 billion, which are the main explanation for the year’s negative result.

Consolidation of operations and the shift to more renewable production continued during the past year. Vattenfall divested assets – including fossil-based generation – for a combined net total of SEK 11.6 billion. At the same time, Vattenfall invested further in new wind power, which made up the single largest investment item in 2014.

An overhaul of Vattenfall’s investment strategy was initiated in 2014. A new executive management team has now been appointed, and a new organisational structure will take effect on 1 April of this year.

“To be able to develop our customer offerings towards more sustainable solutions, we will uphold our position as a European company. We will also be an electricity producer that focuses on emissions-free or emissions-efficient solutions,” said Magnus Hall.

Vattenfall discloses this information pursuant to the Swedish Securities Market Act.

Issued by Vattenfall’s Press Office, telephone: +46-8-739 50 10, press@vattenfall.com.