Vattenfall return solid results

22 March 2005 – Vattenfall has published 2004 financial results that highlight a 29.1 per cent increase in net profits while sales increased by just 1.3 per cent.

The relatively small increase in sales was caused by lower electricity prices, but this was compensated by the company’s increased generation levels and in part by positive hedging outcomes. The company also referred to cost savings and a ‘significant improvement’ in profit in Poland, as evidence for the strong rise in profits.

Undergoing a period of consolidation, the Swedish company used cash flow to repay more than SEK11bn ($1.6bn) in order to reduce its level of net debt to SEK55.4bn. The company was able to retain its credit rating in the Single A category with a stable outlook.

Vattenfall also announced that earnings per share had increased by 29 per cent to SEK89.42.