Swedish utility Vattenfall reported a 9% decline in underlying earnings from its wind power division for the first half of 2025, citing lower wind production, increased depreciation, and a less favourable pricing outlook.
Underlying EBITDA for the wind segment dropped to SEK 6.5 million (€580,000) from SEK 7.2 million (€639,000) during the same period in 2024, the company said in its half-year financial results on Thursday. Underlying profit fell 29%.
Vattenfall attributed the earnings decline primarily to weaker wind speeds, higher depreciation costs associated with the 1.5 gigawatt Hollandse Kust Zuid offshore wind farm in the Netherlands, and the absence of one-time gains recorded last year from the sale of UK wind assets off the coast of Norfolk.
Electricity generation from wind fell 12% year-on-year, driven by reduced output from both offshore and onshore operations.
The company also recorded SEK 640 million (€56.8 million) in impairments related to its onshore wind assets in Sweden, citing a “deteriorating outlook of electricity prices”.
Vattenfall noted that all major permits have now been secured for the proposed 1.2GW Kattegat Syd offshore wind project off the coast of Falkenberg, Sweden. However, a final investment decision on the project has yet to be made.
At the group level, underlying EBITDA fell 41% to SEK 25.3 million (€2.2 million), partly due to capital gains from asset sales in 2024 that did not recur. These included the sale and subsequent partial repurchase of a 49% stake in the 1.6GW Nordlicht 1 and 2 wind farms in German waters.
“In 2025, the energy landscape continues to be characterised by geopolitical unrest and economic pressure,” said Chief Executive Anna Borg. “The pace of electrification is currently slower than expected, but the direction forward is clear.”
“Sticking to climate goals creates predictability for necessary investments. It’s about facing uncertainty with action,” she added.
Vattenfall said it continues to focus on scaling up electricity generation and grid capacity as part of its long-term decarbonisation strategy, despite near-term challenges in the energy market.
