Energy group Vattenfall posts net loss on German nuclear decision

Jul 28, 2011, 10:10 GMT

Stockholm - Swedish energy group Vattenfall Thursday reported a second-quarter net loss, citing the effect of Germany's decision to phase out nuclear power and not allow older reactors to operate.

The second-quarter net loss of 3.2 billion kronor (505 million dollars) compared with a net profit of 5.2 billion kronor in the same period last year, the state-owned group said.

Vattenfall estimated a one-time cost of 10.2 billion kronor over the decision in Germany that affects the group's Brunsbuettel and Kruemmel nuclear plants that will not be allowed to re-start. Vattenfall owns 50 per cent of Kruemmel.

Chief executive Oystein Loseth said the cost in Germany included higher 'provisions for dismantling and handling of nuclear fuel.'

Net sales during the period dropped 18 per cent year-on-year to 40 billion kronor, mainly due to the sale a year ago of the group's German transmission business, and lower production, the group said.

Vattenfall said electricity production decreased almost 9 per cent in the quarter. Production from hydropower, nuclear power and fossil fuels dropped while wind power production increased.

The group has operations in the Nordic region, Germany, Poland, Belgium and Netherlands.

However, on Wednesday it announced an agreement to sell its Belgian operations - with 150 employees - to Italy's ENI for about 1.4 billion kronor.

Vattenfall at the end of June employed some 37,500 people, down 2 per cent compared to the same period in 2010.