Energy group Vattenfall’s profits dried up in the turbulent energy year 2022. Instead of billions of profits, the result was just 1.9 million euros. Still, the Swedish company is looking at last year with a good feeling.
Vattenfall is the Netherlands’ first major energy supplier to publish last year’s figures. The low profit is mainly due to the large price fluctuations in energy prices last year. Due to old contracts, many Vattenfall customers were still able to buy gas and electricity for relatively little money. The company itself had spent a lot of money buying energy, which was much more expensive.
Moreover, the company took a big chance in 2021. As a result, Vattenfall received billions in compensation from the federal government for the premature shutdown of nuclear reactors. This has increased this year’s earnings and further widened the gap to 2022’s earnings.
No panic
Still, senior woman Anna Borg released the numbers this morning with ease. His message was to look beyond earnings numbers and see a company that shines with health. “If you don’t include temporary price differences between trades and lucky breaks from 2021, you’ll see Vattenfall positioned better than before,” he said.
Therefore, the management is proposing to distribute dividends of SEK 4 billion (EUR 350 million) to the shareholders.
The company also gained many more customers by opening new wind farms. Vattenfall gained 400,000 customers in Germany alone. The company thus benefits from high electricity prices.
“Far from gasoline, full of greenery”
Borg also touched on the different energy frontiers in Europe and shared a little disdain. “Covers have already been introduced in Denmark, Germany and the Netherlands,” Borg said. So far, this has had almost no impact on the company’s earnings, he explained. “But state intervention leads to uncertainty. This slows down investment.”
According to him, these investments are exactly what is needed to end the ups and downs in the energy market. According to him, Europe should become less dependent on geopolitical developments. “Stop the gas, invest in green. It’s the only way out.”
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
