E.ON Sverige

E.ON Sverige AB, formerly known as Sydkraft, is Sweden's second largest utility company with an annual turnover of 42.9 billion Swedish Krona (SEK) (approximately €4.8 billion euro, US$7 billion USD). The net profit for the 2008 fiscal year amounted to SEK 14.88 billion (US$ 2.11 billion). The company is a complete energy group providing products and services in energy, the environment, recycling, waste, and communications.

History

The company was founded in 1906 as Sydsvenska Kraftaktiebolaget with August Schmitz as CEO. Originally the company was producer of hydroelectricity. In 1915, in cooperation with the Swedish and Danish electricity grids, Sydsvenska Kraftaktiebolaget participated in the construction of Öresundskabeln, the first electricity interconnection between Sweden and Denmark.

In the 1970s, the company moved into production of nuclear power. In 1971, the Oskarshamn Nuclear Power Plant was commissioned, with Sydsvenska Kraftaktiebolaget as major shareholder. In 1977, the company changed its changed name to Sydkraft.

The majority shareholding in Sydkraft AB was acquired in 2001 by E.ON AG in a deal estimated at $6.5 billion. In 2004, Sydkraft bought the Swedish energy company Graninge. On 16 September 2005, Sydkraft changed its corporate name to E.ON Sverige.^[1] In 2006, E.ON Sverige sold its broadband network to Tele2.

On 24 July 2008, Statkraft AS and E.ON AG signed a final agreement on asset swap, according to which E.ON acquired Statkraft's 44.6% of shares in E.ON Sverige by exchange of assets worth of €4.5 billion.^[2]

Operations

The group's primary activities include electricity sales, distribution, and production, natural gas, LPG, heat & cooling.

Subsidiaries

E.ON Sverige has 60 operating subsidiaries. The company is party to the Baltic Gas Interconnector. In Finland, it owns a subsidiary Kainuun Energia Oy. Its subsidiary E.ON Kärnkraft Sverige is responsible for nuclear power generation in Sweden. It is also an owner of 34% of shares in Fennovoima Oy, a company planning to build a sixth nuclear reactor in Finland.