Vattenfall’s Wind Business Area reported SEK 1.263 billion (EUR 130 million) in net sales in the third quarter of 2016, a 9% decrease compared to SEK 1.389 billion reported for the same period in 2015, due to ”lower prices received and less favourable wind conditions”.
The Swedish energy company’s wind unit also recorded an underlying operating loss of SEK 117 million for the period, mainly owing to lower production revenue, higher depreciation associated with the commissioning of new wind farms, and higher project planning and repair costs, Vattenfall said.
Electricity generated by the company’s wind farms in Q3 2016 remained unchanged compared to Q3 2015, and stood at 1.1 TWh.
For the period January to September 2016, Vattenfall’s wind unit reported SEK 4.519 billion in net sales, as compared to SEK 4.614 billion reported for the first nine months of 2015. The electricity generation in the first nine months of 2016 increased to 3.9 TWh, from 3.8TWh generated in Q1-Q3 2015 period.
However, more electricity generated did not translate to higher underlying operating profit, which was down 43%, from SEK 842 million in the first three quarters of 2015, to SEK 480 million in the same period of the current fiscal year.
On a positive note, the Wind Business Area’s number of employees increased from 550 at the end of Q3 2015 to 680 at the end of Q3 2016.
Looking at offshore wind, the third quarter saw Vattenfall winning the tendering process for the Danish nearshore wind farm bid off the coast of Jutland, and generating first power at the 288MW Sandbank offshore wind farm and feeding it to the German grid.
”In September the Danish government announced that Vattenfall had won the tendering process for the construction of near shore wind power at two sites off Jutland’s west coast,” said Magnus Hall, President and CEO of Vattenfall.
”As a result of the winning bid for these two wind farms totalling 350 MW in capacity, Vattenfall will be Denmark’s largest wind power operator. We are waiting for final approval from the Danish government before any more work can begin. We are already generating electricity from our Sandbank wind farm off the German coast, even though only 50% of the turbines have been installed. Through focused development work we have managed to shorten the commissioning phase and thereby lower our overall project costs. This experience is important for future wind power projects.”