![Power prices [Source: Vattenfall Q3 16 presentation]](http://gastopower.co.uk/media/k2/items/cache/ba763338af1919bcd8c430bdedef987f_S.jpg)
Swedish utility Vattenfall reported a net loss of SEK 21.9 billion in the first nine months of 2016. Net profits from continuing operations accounted for SEK 1.8 billion.
“Profit after tax for the period was weighed down heavily by impairment losses recognized during the second quarter, mainly as a result of lower electricity prices”, said the company's CEO and president Magnus Hall.
Nordic spot prices were 90% higher year on year in Q3 16, “mainly owing to weaker hydrological balance” the company said, however German and Dutch spot prices were approximately 14% and 22% lower respectively.
It added electricity futures prices were lower in all of Vattenfall’s markets “but trending upwards.” In the same period, lower prices on oil (Brent crude), gas and CO2 allowances but higher coal prices were noted.
Overall, the company generated some 127.3 TWh over the period, including its lignite operations.
Meanwhile, in Q3 16 the company completed the sale of its lignite business, “which was a major step in adapting Vattenfall’s operations to new market conditions and a long-term sustainable energy system.”
Investments in wind power generation continued, and reached SEK 6.2 billion, the company reported.
Moreover, in September Vattenfall won the tendering process for the construction of two near shore wind farms totalling 350 MW in Denmark, “which will make Vattenfall the country’s largest wind power operator,” it said. Start of construction is pending approval by the Danish government.
“We are also continuing our active work on reducing our CO2 emissions,” said Hall, adding that the company is investing SEK 1 billion to replace lignite with natural gas at the Klingenberg power plant in Berlin, which is expected to lower its annual CO2 emissions by 600,000 tonnes.
Furthermore, “the agreement on Swedish energy policy has created improved conditions for Vattenfall’s hydro and nuclear power operations” he said.
Earlier in June, Vattenfall had said it welcomed the abolition of a nuclear capacity tax in Sweden,
which was “an important precondition for us to be able to consider the investments needed to secure the long-term operation of our nuclear reactors from the 1980s” according to Hall.
The agreement also included reduced real estate tax on hydro power and established new renewables targets to 2030.