Vattenfall, working with PA, carried out a Shareholder Value-based analysis of generating assets in Vattenfall Generation, one of the four business divisions within Vattenfall. This business area produces electricity – mainly nuclear and hydropower – which is then sold to others in Vattenfall, as well as to the Nordic power market and Nordpool. In total, Vattenfall Generation produces 20% of the electricity used in the Nordic region.
The entire project was conducted and delivered in five weeks, with all data collection, model development and the final analysis successfully completed within this short time frame.
PA helped deliver considerable benefits to Vattenfall through taking the Shareholder Value approach. These benefits included:
- A much clearer picture of the value of its existing business, and where value is being created or destroyed
- A clear route to releasing a considerable sum in Shareholder Value.
However, the ultimate testimony to the success of the project was demonstrated during the following twelve months. During this time Vattenfall participated in a number of asset swaps using its experience from the assignment with PA as an essential decision-making tool.
"Managing for Shareholder Value (MSV) is a very powerful tool that enables a large organisation to focus on how to release value from its capital assets. When Vattenfall Generation was changing to its new role as an asset owner, it was essential for the company to enable the organisation to focus on how to release locked capital. This change was facilitated by PA and its MSV concept.”
Alf Lindors
Executive Vice President
Vattenfall
