Vattenfall has announced plans to sell its German lignite mining and generation activities in order to reduce its carbon dioxide emissions and raise funds.
The move came after the utility announced an operating loss for the third quarter of SEK19.4 billion compared with a profit for the same period in 2013 of SEK4893 million.
Magnus Hall, CEO and president of Vattenfall, said: "We have a clear strategy to reduce our CO2-exposure and to transform our business into a more renewable based portfolio. The Board of Directors has decided that Vattenfall will explore options for creating a sustainable, new ownership structure for the lignite operations."
Vattenfall said it would "maintain a close dialogue" with the federal states of Brandenburg and Saxony in the sale process. It says it remains committed to its other businesses in Germany and that it will continue to prioritise investments in renewables.
The fall in profits was caused by impairment charges and a "continued difficult market situation", the utility said. It said it would increase its cost-cutting target for next year and conduct a further review of its investment programme.
"Like other electric utilities, Vattenfall is experiencing difficult market conditions with weak demand, a surplus of generation capacity and historically low electricity prices," said Hall.
Sian Crampsie
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