Vattenfall biomass stake linked to falling operating profits

Renewable energy company Vattenfall has announced a SEK150 million (€17.9 million) drop in operating profits for the first six months of this year.

Profits coming from the renewables division fell from SEK227 millions to around the SEK 80 million mark. This drop has been in part due to impairments and provisions of SEK500 million which was set aside for a minority interest stake in a biomass project in Liberia.

Poor UK wind conditions and lower average prices during the second quarter have also been named a factor.

Net renewable sales for the first half of 2012 have jumped up however by 64% from SEK1.04 billion to SEK1.71 billion.