Thursday, February 5, 2015

No dividends to the State from Waterfall – Swedish newspaper Svenska Dagbladet

No dividends to the State from Waterfall – Swedish newspaper Svenska Dagbladet

waterfall went back 8.3 billion for the full year last year, a dismal continuation of 2013, when the result was minus 13.5 billion crowns.

The fourth quarter of 2014, net sales 48,725 were million, compared to 47.156 billion crowns corresponding quarter last year. Underlying operating profit was 8.223 billion crowns, compared with 7.006 billion crowns.

Waterfall, which is normally the Swedish government’s cash cow, proposed that the zero dividend for the past year.

“Weak demand, oversupply of capacity and falling electricity prices,” said CEO Magnus Hall on 2014.

But the report also shows the devastating loss is measured as the full year, net SEK 20.4 billion .

“The demand slowed further due to the hot weather which led to reduced consumption of electricity, gas and heat. Lower production margins and lower production volumes Hard elvis been compensated by successful cost reductions. We have for the past four years implemented measures compared to the cost base in 2010, led to savings of 13.7 billion annually, “he continues.

In the last quarter Vattenfall has made major sales to offset the huge losses. In December sold including a coal power plants in Denmark and a cable in the sea that gets electricity from the British liquid Thanet wind farm. But last autumn, it was clear that 2014 would bring a difficult full-year loss since Waterfalls in the first nine months were 15.5 billion in losses.

Today’s report testifies to continued investments in wind power. For example, invested 2 billion together with Skandia in four new wind farms in Sweden. But it is divestments dominate.

Overall, Vattenfall is estimated to have sold off assets 58 billion in recent years. Now, the German brown coal operations in line.

“Vattenfall’s ambition to find new owners for the German lignite operations in the Mining & amp; Generation placed this activity in agreement paired device,” said CEO Magnus Hall in the financial statements.

It is the state ownership directive to lead the development of “environmentally sustainable energy” that makes Vattenfall’s fossil energy resources difficult to handle. But the directive is also clear that there should be “market return” in the energy business.

While wind, biomass and waste in 2014 accounted for 3 percent of energy production (exactly the same as the year before), yielded fossil fuels 48 percent of the energy. Nuclear and hydropower accounted for 29 and 20 percent respectively.

A major challenge is the low electricity prices. 2014 was the best year in a long time for electricity consumers and electricity price the party is expected to continue, something that weighs Waterfall.

Meanwhile , nuclear power has become political dynamite with the Green Party in government. Vattenfall is the majority owner of Forsmark and Ringhals, and part owner in Oskarshamn, a total of ten reactors. Among other things, the Government’s management of Vattenfall planning of new nuclear KU notified. Energy issues are included in the “December Agreement” where the alliance is expected to support a red-green government. When the S and MP unveiled its energy agreement last fall, said Asa Romson to several nuclear reactors would be closed during the mandate period. However, Vattenfall has not expressed such plans.

At last report last fall, let Waterfall bomb that you wrote down asset values ​​by 23.1 billion, or net after tax of 19.9 billion. It was partly about the overvalued exchange of power with extreme compensation to executives as they got on the neck by the ill-fated acquisition of Nuon, but also on bad investments and outdated fossil plants. 13.8 billion was recorded in the Netherlands, 6.9 billion in Germany, 1.4 billion in the Nordic countries and 1.0 billion in the UK.

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