Vattenfall posted a Skr 18.06bn ($2.44bn) net loss for the July to September period, compared to a Skr1.54bn profit in the same quarter last year.
The third-quarter results included a SKr23bn impairment charge, mainly against its fossil-based assets and trading operations.
The utility said the poor result was due to an ongoing difficult market situation, but that it is raising its cost-cutting target for next year and reviewing its investment programme.
"Vattenfall