April 29 (Renewables Now) – Swedish state-owned utility Vattenfall AB more than doubled the underlying operating profit of its wind power segment in the first quarter of 2022, helped by increased power output and higher prices.
The unit develops, builds and operates wind farms, as well as large-scale and decentralised solar power and batteries.
The segments’ underlying earnings before interest and tax (EBIT) in January-March came at SEK 4.9 billion (USD 10.3bn/EUR 9.6bn), rising from SEK 1.77 billion a year earlier, the Swedish firm’s interim report showed on Friday. Vattenfall attributed the improvement to a rise in electricity prices, mostly in Continental Europe, and the commissioning of new power generation capacity.
Major financial metrics of the wind power business are given in the table.
|Amounts in SEK million||Q1 2022||Q1 2021|
|External net sales||1.77||1.8|
|Electricity generation – wind power TWh||4.0||3.1|
|Sales of electricity, TWh||0.3||0.3|
Electricity generation increased by 29% as high wind speeds boosted the output of the company’s wind farms. Тhe 605-MW Kriegers Flak park in Danish waters, inaugurated in September 2021, also helped boost the segment’s power production in year-on-year terms.
During the first quarter, Vattenfall secured planning permission for the Norfolk Vanguard offshore wind project in the UK and won a permit to build an over-798-MW wind farm in Scottish waters together with Fred Olsen Seawind.
Overall, Vattenfall’s performance was affected by transmission bottlenecks and the impact the war in Ukraine has on energy markets. The company saw its first-quarter net profit drop to SEK 6.1 billion from SEK 10.4 billion a year earlier despite growing sales.
Total electricity generation declined by 6.1% to 30.9 TWh.
(SEK 1.0 = USD 0.103/EUR 0.0962)