DONG Energy Stays Strong in Q1. Reaffirms 2015 Outlook.

DONG Energy today issued its interim financial report for Q1 2015, saying that the outlook announced in the 2014 annual report is reaffirmed. 

The company’s EBITDA was DKK 6.0 billion (around EUR 804 million) in Q1 2015, compared with DKK 6.3 billion (EUR 844 million) in Q1 2014. DONG Energy said that the decline was in line with the outlook announced in the annual report for 2014 and was primarily due to the positive impact in Q1 2014 of the partial divestment of the London Array offshore wind farm.

Gross investments totalled DKK 4.7 billion (approx. EUR 630 million), mainly relating to offshore wind activities (Borkum Riffgrund 1, Gode Wind, Westermost Rough and Hornsea 1) as well as oil and gas fields (Hejre, Syd Arne and Laggan-Tormore).

DONG expects business performance EBITDA for 2015 to amount to DKK 15.5-17.5 billion (EUR 2-2.3 billion). Net investments of DKK 35-40 billion (EUR 4.6-5 billion) are expected for the 2015-2016 period.

Henrik Poulsen, DONG Energy’s CEO and President, said:

“Despite a large divestment gain realised in Q1 2014 and the significant fall in oil and gas prices in 2014, we are posting almost unchanged EBITDA for Q1 2015. Earnings were driven mainly by a consistently high level of efficient production from our oil and gas fields and offshore wind farms.

“Moreover, two insurance compensations were recognised in Q1. The strong start to 2015 supports the previously announced ambition of achieving EBITDA for the full year of DKK 15.5-17.5 billion.

“We remain highly committed to putting action behind our vision of leading the transformation of the energy system. In the course of 2015, we expect to complete two large offshore wind farms, Westermost Rough in the UK and Borkum Riffgrund 1 in Germany, and also to start up production from the Laggan-Tormore gas field in the UK.

“Wind Power also strengthened its portfolio of project options for the post-2020 period by acquiring the rights to a project in the USA and taking over the full ownership of the Hornsea project in the UK. At the same time, we are in the process of converting our Danish CHP plants in Skærbæk
and Studstrup to biomass. In Q1 the Board of Directors also approved an investment in the conversion of the rest of the Avedøre power station, so that from the end of 2016, it will be able to supply electricity and heating to the Greater Copenhagen Area based on 100% sustainable biomass. Finally, after a comprehensive tender process in Q1, we awarded a DKK 1.8 billion contract to the Danish company Kamstrup for the delivery of about one million ‘smart’ power meters for our customers to be installed in the 2017-2020 period.

“These are all activities which are contributing to creating a more sustainable and intelligent energy system, while at the same time maintaining a high level of security of supply and minimising dependence on imported fossil fuels.

“Last but not least, Q1 saw a continued positive development in our lost-time injury frequency. The LTIF (number of accidents with absence per million working hours) fell to 2.2 for the last 12 months.

“DONG Energy’s energetic and highly skilled employees once again deserve a huge thank-you for their efforts in the past quarter.”

Image: DONG Energy