Vattenfall earnings increase in 'stable' Q1

SWEDEN: Vattenfall has reported a 7% year-on-year increase in pre-tax earnings in its first quarter of 2016, with its wind business increasing by 12.7%.

Vattenfall's 288MW DanTysk offshore project helped in the increase of generation
Vattenfall's 288MW DanTysk offshore project helped in the increase of generation

Vattenfall reported earnings before depreciation, amortisation and impairment losses (Ebitda) of SEK 14.5 billion (€1.58 billion) – up from SEK 13.5 billion in the same quarter of 2015.

For its wind business, Ebitda increased from SEK 1.3 billion to SEK 1.5 billion thanks to higher revenue and electricity generation after the completion of the DanTysk and Kentish Flats Extension offshore site and the Clashindarroch and Klim onshore projects.

Generation increased year-on-year from 1.4TWh to 1.5TWh.

The group is shifting towards a renewables and clean energy focused business, signified by the sale of its German lignite business earlier this month to Czech energy company EPH.

"It is a year in which the transformation of Vattenfall will start in earnest, where the core is a climate-neutral generation portfolio, combined with customer-centred energy solutions. We are also planning bids for a number of substantial wind power projects. When this year is over it will be very interesting to see where we are," said Vattenfall CEO Magnus Hall.

For the 2015 financial year, the utilty's wind division Ebitda increased 22.5% in 2015, while the group recorded a SEK 23 billion operating loss in its financial year due to impairment losses in its lignite, nuclear and coal businesses.

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