Swedish state-owned utility Vattenfall released its third quarter earnings and reports its electricity generation in the third quarter of 2015 rose 12% year on year, with hydropower leading the way.
The report indicates that total generation in Q3 2015 was 41.2 TWh, compared with 36.8 TWh in the third quarter of 2014. Hydropower generated 9.5 TWh in Q3 2015, compared with 6.1 TWh in Q3 2014. Fossil-fueled generation also increased, to 21.4 TWh from 181 TWh. Nuclear generation fell, however, to 9.1 TWh from 11 TWh.
Vattenfall posted a net profit for the quarter of SEK1.6 billion (US$187 million) on net sales of SEK 37.5 billion (US$4.4 billion), compared with a loss of SEK18 billion (US$2.1 billion) on sales of SEK 34.7 billion (US$4.1 billion) for the same quarter in 2014.
“Compared with a year ago, during the third quarter Vattenfall increased its underlying operating profit, improved its cash flow and lowered its debt, says Magnus Hall, president and chief executive officer. “The profit increase is mainly attributable to higher production volumes and lower operating costs.”
According to a press release, “Despite substantial reductions in Vattenfall’s costs since 2010, cost-cutting efforts must continue.” The company is looking at outsourcing part of its administration and IT operations, sharpening and streamlining its purchasing processes, and finding new owners for its German lignite assets.
Vattenfall has operations in Sweden, Germany, the Netherlands, Denmark, the UK and Finland. The company produces heat and electricity from six energy sources: wind, hydro, biomass, nuclear, coal and gas. Vattenfall owns and operates more than 100 hydro plants, and hydropower accounts for about 20% of the company’s total electricity generation.