Nordic Business Report-July 27, 2006-Vattenfall AB reports Q2 operating profit of SEK5,697m
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The Swedish energy group Vattenfall AB issued its second quarter report on Thursday (27 July), posting an operating profit, excluding items affecting comparability, of SEK5,697m, as compared to SEK4,933m in the second quarter of 2005.
The improvement was mainly due to contributions from German power generation operations.
Net sales amounted to SEK38,070m, as compared to SEK29,292m in the second quarter last year.
Despite the improvement in earnings and sales Vattenfall expressed worry about higher taxes in the Nordic region and about German network regulations. The German network regulator Bundesnetzagentur recently ruled that Vattenfall must reduce its network tariff by 17.9% from July until the end of the year. This will burden the profit for the second half of the year to the amount of SEK459m.
One Swedish krona (SEK) is worth approximately 0.07 British pounds (GBP).
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