Vattenfal's wind profit drops in Q3 amid lower prices

Vattenfall AB’s wind segment recorded a 46% year-over-year drop in underlying operating profit for the third quarter of 2024, affected by lower electricity prices, the Swedish state-owned utility’s quarterly report showed on Thursday.

The decline also reflects lower income from divestment activities and higher depreciation and came despite a 29% rise in electricity generation, boosted by the new offshore wind farms Hollandse Kust Zuid and Vesterhav. Vattenfall inaugurated the Vesterhav Nord and Vesterhav Syd offshore wind farms totalling 344 MW in Denmark during the quarter. Net sales were down 47%.

In the first nine months of the year, the wind segment, which also includes the company’s solar and energy storage activities, saw its underlying operating profit and net sales decrease by 14% and 23%, respectively.

Vattenfall’s overall underlying operating profit for the nine-mont period climbed by SEK 3.7 billion (USD 346m/EUR 319.9m) to SEK 19.3 billion, largely due to higher achieved prices in the Nordics and increased output from hydro, nuclear and wind assets. The company’s profit for the period jumped to SEK 28.3 billion from SEK 4.7 billion, aided by positive changes in market value for energy derivatives and gains from the sale of 49% of the Nordlicht I and II offshore wind projects and the sale of the Norfolk offshore wind zone.

Net sales declined by 18% to SEK 177.08 billion.

(SEK 1 = USD 0.094/EUR 0.086)

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