Earnings of Swedish utility Vattenfall doubled on increased output and prices
The company reported that earnings at Vattenfall, Sweden's state-owned utility, had doubled from the same period a year earlier, thanks to a?higher production of power and sharply higher?Nordic electricity prices.
Vattenfall has reported a profit of 17.2 billion Swedish Crowns ($1.85billion) before interest and taxes for the period January-March, up from an earlier figure of 8.5 billion Swedish Crowns.
The company reported that prices for Nordic power generation rose, as the average day-ahead price in the region jumped to 90 euros per megawatt hour from 45.5 euro/MWh one year earlier.
Vattenfall’s total electricity production increased by?2.8 Terawatt Hours (TWh) on an annual basis to 29,9 TWh.
"It's a strong result. We?also see, however, that the geopolitical chaos is not good for long-term investments in the market. "The uncertainty and volatility is problematic", CEO Anna Borg stated in an interview.
The Iran War and the Closure of the Strait o f?Hormuz has hit oil and LNG exports out of the Gulf. This accounts for about a fifth of global supplies and is pushing up prices.
Borg stated that the latest energy market shock highlights?the need for Europe to become more independent and increase domestic energy production.
Vattenfall has a portfolio of generation that is largely fossil fuel-free, which includes nuclear plants, wind farms, and hydropower in Sweden, as well as elsewhere in Europe. This limits its exposure to crisis, according to the CEO.
The?company has been able to continue its?165 billion crown five-year investment program, with half of it focusing on new grids and power generation.
(source: Reuters)
