Vattenfall posts impairment charge related to Benelux

Following the annual impairment testing that Vattenfall has completed, the Swedish energy company has decided to make an impairment charge for SEK4.3bn (£0.4bn) of the goodwill item related to business group Benelux.

The impairment is due to deteriorated market conditions as a result of the global financial and economic crisis, which has lead to lower than originally assumed margins in Vattenfall’s Benelux operations.

The impairment reduces Vattenfall’s operating profit and net income for the fourth quarter 2010 but has no impact on cash flow.

Despite this impairment, net income for the full year 2010 is estimated to be approximately on par with 2009.