Denmark: DONG Satisfied with Financial Q1 of 2013
The Board of Directors of DONG Energy has today approved the interim financial report for the first quarter of 2013 with the following financial highlights and outlook compared with the first quarter of 2012:
— First-quarter 2013 EBITDA was DKK 4.6 billion, up from DKK 3.6 billion in the first quarter of 2012, primarily reflecting higher earnings from the wind activities, higher oil production and lower costs
— Profit after tax was DKK 0.5 billion, down DKK 1.8 billion on the first quarter of 2012, which included a gain on disposal of DKK 2.0 billion after tax, primarily relating to Oil Terminals
— Operating cash inflow increased to DKK 2.2 billion from DKK 1.0 billion in the first quarter of 2012, primarily reflecting a decrease in funds tied up in working capital and the higher EBITDA
— First-quarter 2013 net investments were DKK 5.2 billion against DKK 2.0 billion in the same period last year, which included divestments totalling DKK 2.8 billion. Investments related mainly to the development of wind activities and gas and oil fields
— Interest-bearing net debt increased by DKK 2.6 billion from the end of 2012 to DKK 34.5 billion
CEO Henrik Poulsen:
“Our financial performance for the first three months of the year developed satisfactorily and all five business units performed in line with our expectations. First-quarter earnings (EBITDA) were 30% ahead of 2012, driven by new offshore wind farms, higher oil production and lower costs. Implementation of the strategy and financial action plan we presented together with our annual report back in February is progressing as planned. This includes the work on developing our growth businesses, divesting non-core activities, restructuring the loss-making gas activities, cutting costs and raising new equity. For these reasons, we are reaffirming our previously announced outlook for 2013-14.
Following a challenging 2012, the first quarter was a first step in the right direction. But we still have a long way to go in our efforts to enhance DONG Energy’s capital structure and secure the platform for our growth ambitions.”
The outlook in the 2012 annual report is reaffirmed:
— Business performance EBITDA for 2013 is expected to amount to DKK 11.5-12.5 billion
— Net investments for 2013 and 2014 are expected to amount to DKK 25-30 billion
— The ratio adjusted net debt / EBITDA is expected to be reduced to around 2.5 by the end of 2014
In connection with the presentation of the interim financial report a conference call for investors and analysts will be held on 23 April 2013 at 10.00am CET.
Press release, April 22, 2013; Image: DONG Energy