Vattenfall’s first quarter 2015: Profit after tax of SEK 5.0 billion

Lower production volumes and continued falling electricity prices had a negative effect on Vattenfall’s earnings during the first quarter. The work towards a more sustainable energy portfolio continued, and wind power made up the single largest investment area during the quarter. New personnel reduction measures will affect approximately 1,000 full-time equivalents.

January - March 2015 in summary:
• Net sales of SEK 45,377 million (45,912)
• Underlying operating profit of SEK 7,736 million (9,075)
• Operating profit of SEK 8,386 million (11,832)
• Profit after tax for the period of SEK 4,987 million (8,205)
• Electricity generation of 46.4 TWh (50.1)

CEO’s comments:
“Demand for electricity remained weak during the first quarter of the year, and electricity prices have continued to fall. The protection we have in the form of forward contracts entered into at higher price levels is gradually decreasing, entailing that the current low wholesale prices are having a gradually bigger impact on Vattenfall’s earnings,” says Magnus Hall, President and CEO of Vattenfall.

Vattenfall has continued the work on shifting its operations towards a more sustainable energy portfolio. During the quarter Vattenfall was awarded the concession to build and operate the Horns Rev 3 offshore wind farm in Denmark, which will supply electricity corresponding to the needs of 450,000 households from 2019.

“This is a prime example of the major investments we are making in wind power, which totalled SEK 2 billion during the quarter and thereby accounted for Vattenfall’s single largest investment area,” says Magnus Hall.

Parallel with this, the process of divesting the lignite operations in Germany has continued.

Vattenfall’s new Group structure with six cross-border Business Areas took effect on 1 April: Heat, Wind, Customers & Solutions, Generation, Markets, and Distribution. The aim of the new organisation is to enhance Vattenfall’s business and earnings focus, and to take advantage of cross-border synergies.

“At the same time, we need to continue lowering our costs and will reduce the number of employees corresponding to approximately 1,000 full-time equivalents, of whom about half will be in staff functions. The new organisation creates conditions for a strong northern European company,” concludes Magnus Hall.

The first quarter report is available on corporate.vattenfall.com.

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

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

Vattenfall is a Swedish-owned energy company with operations in Sweden, Germany, the Netherlands, Denmark, the UK and Finland. Vattenfall’s vision is to develop a sustainable and diversified European energy portfolio and to be among the leaders in developing an environmentally sustainable energy system.

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