Stockholm - Swedish state-owned energy group Vattenfall on Thursday posted higher operating profits for third-quarter 2008, boosted by its operations in the Nordic region.

Operating profit before tax and interest was 5.59 billion kronor (726 million dollars), up 17 per cent year-on-year.

Third-quarter turnover increased by 17 per cent to 37 billion kronor, while the net profit fell some 29 per cent to 2.48 billion kronor.

Vattenfall said the drop was mainly due to a "non-recurring, positive tax effect of 950 million kronor in Germany" during the third quarter of 2007.

Vattenfall Chief Executive Lars G Josefsson said the group's Nordic business unit contributed to the increased operating profit.

Higher electricity prices - the average spot price was three times higher year-on-year - on the local electricity market in the Nordic region contributed to the profits.

Vattenfall's Central Europe business was affected by the standstill of the Brunsbuettel and Kruemmel nuclear plants in Germany, which have been off-line since June 2007. The third-quarter impact of the costs for the standstills was 120 million euros (153 million dollars), the group said.

Josefsson said interest had been "great" for the possible sale of Vattenfall's high-voltage transmission grid in Germany but no decision to sell has been made. (dpa)