OSLO, Feb 6 Reuters Swedish utility Vattenfall on Tuesday reported a fall in underlying operating profit for the fourth quarter, citing lower power prices, though its CEO warned market volatility would remain amid a lack of new generation.

Underlying earnings before interest and tax at the stateowned energy group fell to 4.5 billion Swedish crowns 421.6 million from 12.5 billion crowns a year earlier.

Especially last quarter, the prices have been very much lower in 2023 compared to 2022, CEO Anna Borg told Reuters.

Power prices in both the Nordics and continental Europe decreased 60 for the year overall, driven by higher rainfall and warmer weather as well as a sharp drop in gas and coal prices, she added.

The quarterly benchmark Nordic system price for wholesale power averaged 56.98 euros per megawatt hour MWh, down from 135.61 eurosMWh a year earlier.

Vattenfall achieved a price of 42 eurosMWh for its Nordic power production in the fourth quarter, down from 55 eurosMWh a year earlier.

However, Borg warned that uncertainty and volatility seen in the market over the past two years remained.

Fundamentally, not a lot has changed in Europe in terms of that there is not a lot of new energy production, she said.

Any disruptions to the supply of liquefied natural gas LNG or higher energy prices in the event of a cold spell or geopolitical events could easily lift market volatility again, the CEO added.

Vattenfall plans to invest 65 billion crowns over the next two…