Energy group Vattenfall reports 21-per-cent decline in net profit

Feb 9, 2012, 9:52 GMT

Stockholm - Swedish state-owned energy group Vattenfall on Thursday reported a 21-per-cent decline in annual net profit in 2011, citing lower electricity prices and production.

The group made a net profit of 10.4 billion kronor (1.56 billion dollars) last year, compared to 13.1 billion kronor in 2010, company figures showed.

Net sales totalled 181 billion kronor in 2011, down 15 per cent year-on-year.

Fourth-quarter net profit doubled to 5.1 billion kronor year-on-year, although net sales declined some 9 per cent to 50 billion kronor.

Chief executive Oystein Loseth said '2011 was a tough year in many respects for the entire energy sector,' but said Vattenfall was continuing its cost-cutting measures.

The programme, aimed at cutting costs by 6 billion kronor by year-end 2013, was 'proceeding better than planned, and we have lowered our annual costs by 4 billion kronor,' he added.

Germany's decision to phase out nuclear power had resulted in an 'earnings charge of 10.5 billion kronor,' Loseth said.

The decision meant that group would not be allowed to restart the Brunsbuettel and Kruemmel nuclear plants it has interests in.

Vattenfall said electricity production decreased 3.3 per cent in the year. Sales of heat and gas decreased due to warmer weather.

The sale of assets - including its operations in Belgium to Italian energy group ENI - totalled 23 billion kronor, of which 16 billion kronor was received in 2011, Vattenfall said.

At the end of 2011 the group employed some 34,600 people, down 9 per cent compared to 2010.