Offshore Wind Holds Dong Financially Stable in 2014
Dong Energy issued its financial results for 2014 today, which show the company’s strong growth in EBITDA (+9%) and cash flows (+54%). However, decline in oil and gas prices resulted in post-tax impairments of DKK 6.6 billion.
CEO and President Henrik Poulsen said:
EBITDA was up 9% at DKK 16.4 billion despite a significant negative impact from declining oil and gas prices. The increased operating profit came from our market-leading position within offshore wind and a record high production of oil and gas.
For 2015, Dong Energy expects business performance EBITDA to be DKK 15.5-17.5 billion. The expectation reflects that EBITDA in 2015 will be negatively affected by the significant decline in oil and gas prices. In Q1 and Q2 2015, EBITDA is expected to be lower than in the same quarters in 2014, as these were positively affected by gains on divestments in Wind Power.
2014 marked a breakthrough for the Wind Power division with regards to securing the pipeline which will realise the target of a total installed offshore wind capacity of 6.5 GW in 2020. The deciding factor was the award of subsidies for the three UK offshore wind farm projects Burbo Bank Extension, Walney Extension and Hornsea.
Against this background, the Board of Directors decided in December to go ahead with Burbo Bank Extension.
Net investments for 2015-2016 are expected to be DKK 35-40 billion.
Source: Dong Energy