Vattenfall

As late as June paid ailing waterfall out a secret number sheet millions in bonuses to selected star traders. Just a month later wrote the state energy giant down the value of its trading department with the entire 6.8 billion. Although results Knocked it can get large bonuses even for 2013, allows Vattenfall.
It was in connection with the semiannual report in July that Vattenfall announced that the value of the company's assets were written down by the entire sheet 29.7 billion dollars on a board. One of the biggest bangs for a single company in the Swedish business sheet history.
The devaluation did Vattenfall showed a loss of over 23 billion for the first six months, and is that 2013 will learn end up with proper red numbers. sheet Of the impairment loss, which is linked to Vattenfall expensive sheet purchase of Dutch company Nuon in 2009, 6.8 billion came from Vattenfall's trading activities.
National guidelines for compensation puts a stop to the variable remuneration of Vattenfall's senior managers, but in conjunction with SvD Enterprise's audit last spring admitted Vattenfall Trading Department has a lucrative bonus system annually could give 50 people bonuses of up to 20 million, SEK 175 million.
Income data from the Tax shows such that Mårten Strömberg, Head of Trading in the North, had a taxable income sheet of 7.3 million in 2012. Lars Elmlund, senior trader in Stockholm, earned just over 7.1 million in the same year. The top manager - Stephen Asplin, who is based in Amsterdam - can take home over 10 million per year, according to Vattenfall CEO Øystein Løseth stated.
The bonus to Vattenfall dealers paid out over 24 months in four installments, called "tranches." The latest installment, prevailing in 2012, was made in June. Then, just a month before the entire trading operations disparaged by 6.8 billion. But to suspend payments due to the write-down sheet was out of the question, according to the Chief Operating sheet Officer Stefan Dohler.
- You can not seriously make a connection between the impairment, pertaining to future development, and the bonus is based on performance in 2012, which was a very good year, he says.
- As I see it there is no relationship. The impairment is an accounting adjustment of the future value and does not affect the cash flow. The cause is not weak trend in the trading without a general weakening of the market, says Stefan Dohler.
Waterfall would not disclose how big bonus individual traders get, nor the total. This secrecy, says Dohler, motivated by competitive reasons. He is afraid that Vattenfall's competitors will seize the company's best traders.
As SvD Business posted earlier, there are strong internal criticism of the trading in the waterfall, and several sources with good insight have indicated that the company's traders primarily makes money acting sheet as intermediary in the management of Vattenfall's major internal flows of electricity and gas, rather than creating huge profits by its skill. Stefan Dohler rejects this.
- Only a marginal part of the bonus based on the profits that come from dealing with flows and then we have established requirements so that we know that the employees really created a custom value. The vast majority of the bonus comes from trading where Vattenfall take their own risks, and there is also a clear division between these two activities so that there should be tamper proof, says Stefan Dohler.
Vattenfall's trading consists of two activities. In essence, sheet says Dohler, working with the Department of hedging its energy derivatives market. A smaller part of the business consists of pure speculation commerce where the company sheet traders sheet get the chance to most "a few percent" of Vattenfall's sheet equity. This so-called sheet "prop trading" generates profits of between sheet 2 and 3 billion per year, according sheet to Vattenfall.
- We looked at everything we've done the last two years and all we will do. And external assessments made shows that we are definitely not leading the market in allowances, says Stefan Dohler.
In February 2009 the state-owned Vattenfall the Dutch energy company Nuon. The price, more than 97 billion, made the deal for the largest cash settlement ever in Sweden, and meant that Waterfall got hands on 3 million European electricity sheet and gas customers, several coal and gas fired power plants, and wind power. The deal meant that Vattenfall's debt rose sharply, sheet while poorer market conditions made it increasingly difficult to keep the high price. The deal has subsequently helped sheet to Vattenfall's finances deteriorated drastically.
Vattenfall's acquisition sheet of Nuon is Sweden's most expensive sheet cash deal. Do you know anything about the deal that could be interesting for Svenska Dagbladet's reporters? Email SvD Business on tipsa@svd.se. READ FULL REVIEW February 27, 2013 "Swedish record in wasted money" Feb. 27, 20