Vattenfall (VF) Q3 2024 earnings summary

Executive summary

• Underlying EBIT for the first nine months of 2024 increased to SEK 19.3 billion, driven by efficient Nordic hedges, higher generation volumes, and a strong heat business in Berlin until May 2024.

• Profit for the period surged to SEK 28.3 billion, supported by capital gains from wind project divestments, positive market value changes in energy derivatives, and higher returns from the nuclear waste fund.

• Net sales fell 18% year-over-year to SEK 177.1 billion, mainly due to lower electricity prices and divestments, including the Berlin heat business.

• Major events included the inauguration of Vesterhav Nord and Syd (Denmark) and Windplanblauw (Netherlands), the pausing of the Swedish Kriegers Flak offshore wind project, and new industrial collaborations and PPAs.

• Divestment of Berlin heat operations completed in May 2024, with a capital loss of SEK 1.7 billion offset by positive operational results until divestment.

Financial highlights

• Underlying EBIT increased by SEK 3.7 billion year-over-year to SEK 19.3 billion, offsetting lower electricity prices through higher generation volumes and hedging.

• EBITDA rose 68% to SEK 50.1 billion; operating profit for Jan–Sep 2024 was SEK 33.8 billion, up from SEK 10.9 billion.

• Profit for the period improved by SEK 23.6 billion to SEK 28.3 billion, with one-off effects from market value changes and capital gains.

• Cash flow from operating activities was SEK 45.3 billion, up from SEK -9.5 billion; net debt fell to SEK 3.2 billion from SEK 38.2 billion.

• Items affecting comparability totaled SEK 14.5 billion, mainly from capital gains on wind asset sales and positive derivative valuations.

Outlook and guidance

• Focus remains on safeguarding profitability and operational excellence amid lower electricity prices and market volatility.

• ROCE and FFO/adjusted net debt ratios are well above targets, reflecting strong operational and financial performance.

• Price hedging for Nordic generation remains high for the next two years, supporting future earnings stability.

• Ongoing evaluation of project timing, investment decisions, and new nuclear power investments in response to market and regulatory conditions.