annual-and-sustainability-report-2014

Overview | Important eventsQ3 2014 Q4 2014Impairment lossesVattenfall recognised impairment losses of SEK 23.1 billion as a resultof continued deteriorating market conditions. Profit after tax wascharged with SEK 19.9 billion. Vattenfall’s cash flow and net debt werenot affected by the impairment losses. Geographically, the impairmentlosses are broken down into SEK 13.8 billion in the Netherlands, SEK6.9 billion in Germany, SEK 1.4 billion in the Nordic countries, and SEK1.0 billion in the UK. For more detailed information about the impairmentlosses, see Note 14 to the consolidated accounts.Sale of waste incineration plant in GermanyIn September Vattenfall sold its 85.5% majority shareholding in theMüllverwertung Borsigstraße GmbH waste incineration plant inHamburg to the city’s waste management company. The sales pricewas EUR 67 million (slightly more than SEK 600 million).Vattenfall makes continued investments inoffshore wind power in GermanyIn August Vattenfall decided to proceed with construction of theSandbank offshore wind farm (288 MW) west of the existing DanTyskwind farm. Sandbank will comprise 72 wind turbines and is expectedto be commissioned in 2017. Like DanTysk, Vattenfall owns 51% ofSandbank, with Stadtwerke München owning the remaining 49%. Thecombined investment sum is approximately SEK 11 billion.Magnus Hall new President and CEO of VattenfallOn 1 October Magnus Hall took office as Vattenfall’s new Presidentand CEO.Sale of CHP operations in the NetherlandsIn October Vattenfall signed an agreement to sell – via the subsidiaryN.V. Nuon Energy – its CHP assets in Utrecht to the Dutch energycompany Eneco. The sale was completed on 1 January 2015. Theagreement covers Nuon’s district heating network in Utrecht and theLage Weide and Merwedekanaal CHP stations. The sales price hasnot been published.Vattenfall studies alternatives to ownership of lignite operationsIn October Vattenfall announced that the company has decided to lookinto various alternatives for a new ownership structure for the ligniteoperations in Germany. The target is to transform the production portfoliotowards lower CO 2-emitting sources and more renewables.Vattenfall’s commitment to continue running the Group’s other operationsin Germany, including district heating, distribution, sales, trading,wind power and other types of power generation, is unchanged.Vattenfall to build more wind power outside FalkenbergIn November Vattenfall decided to build yet another wind farm,Högabjär-Kärsås (38 MW), east of Falkenberg. It will comprise 12 windturbines and is expected to be commissioned at the end of 2015/startof 2016. The combined investment sum is approximatelySEK 500 million.Sale of service business in GermanyVattenfall decided in November to sell its facility services businessin Germany to ISS Facility Services GmbH. In conjunction with this,Vattenfall signed a five-year agreement with the buyer for facilitymanage ment services. The sale affects slightly more than 500 employees.The sales sum has not been published.DanTysk wind farm operationalIn early December the DanTysk offshore wind farm (288 MW) inGermany began generating electricity. The wind farm comprises 80wind turbines and can generate 1.3 TWh of electricity per year.Two new onshore wind farms in SwedenIn September Vattenfall decided to build an additional two onshorewind farms in Sweden: Juktan (29 MW), in northern Sweden, with nineturbines, and Höge Väg (38 MW), in southern Sweden, with 18 turbines.The combined investment sum is SEK 860 million. The wind farms areexpected to be commissioned at the end of 2015/start of 2016.Vattenfall establishes fast-charging network for electric vehiclesIn September Vattenfall established three fast-charging stations forelectric vehicles in Stockholm. The charging stations were the first inthe company’s fast-charging network, which was expanded in 2014to seven stations in Stockholm and Uppsala. In Berlin, Vattenfall alsoinstalled two fast-charging stations as part of the “Schnell-LadenBerlin” project.Vattenfall and Skandia invest in wind powerIn partnership with the insurance and banking company Skandia,Vattenfall is investing nearly SEK 2 billion in four wind farms inSweden. The plants will be run by a jointly owned company and willhave combined capacity of 141 MW. This marks the first time that aSwedish financial investor is directly financing the construction of newwind power. The joint investment will enable faster expansion of windpower for Vattenfall.Sale of Fynsværket CHP station in DenmarkIn December Vattenfall announced that the Danish district heatingcompany Fjernverme Fyn is acquiring the Fynsværket CHP station inDenmark as well as a waste incineration plant. The enterprise value wasDKK 1.1 billion (approx. SEK 1.4 billion). The combined sales sum wasDKK 600 million in cash consideration, corresponding to SEK 760 million.The sale is expected to be completed during the first quarter of 2015.Vattenfall Annual and sustainability report 2014 9