Higher Nordic power prices and new wind capacity swell Vattenfall's profit
Swedish utility grid-connects Danish near-shore wind farm and installs final turbine at Dutch onshore-offshore project
First-quarter 2024 profits rose at Vattenfall due to higher prices in the Nordics and higher volumes from nuclear, wind and hydropower.
Although power prices fell in continental Europe, the Swedish utility achieved higher prices in the Nordics thanks to price hedges, which had a positive effect on results.
Net sales decreased by 21% to SKr76.50bn ($6.97bn) in the first quarter from the year-earlier quarter, but operating profit increased by 27% to SKr20.76bn, and net profit rose by 43% to SKr16.88bn.
The company during the quarter also entered into several strategic partnerships, such as a hydro power purchase agreement with Borealis and two solar purchase power agreements with Evonik and Wieland Group.
Wind power contributed to Vattenfall’s profit, although sales in wind decreased by 7% to SKr5.85bn in the first quarter compared to the same quarter in 2023. But underlying operating profit increased by 9% to SKr2.60bn in the period, driven mainly by higher volumes in the Netherlands and Denmark, and higher subsidies for German offshore wind farms – which compensated for lower power prices.
Power generation in wind increased by 32%, driven by higher volumes from the offshore wind farms at Hollandse Kust Zuid (South) in the Netherlands and Vesterhav Syd (South) in Denmark, as well as higher volumes from offshore wind in Germany.
In February, the company also connected all 21 wind turbines of the Vesterhav Nord offshore wind farm in Denmark to the grid, and in March installed the final turbine of the Windplan Blauw project in the Netherlands, which are both onshore and in the water of the Ijsselmeer artificial lake.
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