Offshore Wind Major, Dong Energy, Trims Sails, Ups H1 2013 Profit

MarineLink.com
Wednesday, August 21, 2013
Image courtesy of IWEA

The Board of Directors of DONG Energy has approved the interim financial report for the first half of 2013 with the following financial highlights and outlook compared with the first half of 2012:

  • First-half 2013 EBITDA was DKK 7.8 billion against DKK 6.6 billion in the first half of 2012, primarily reflecting higher earnings from the wind activities and lower costs
  • Profit after tax was DKK 0.4 billion, down DKK 0.3 billion on the first half of 2012. Gain (loss) on disposal of enterprises and impairment losses depressed first-half 2013 profit by DKK 0.2 billion net after tax compared with a gain of DKK 0.6 billion in the same period in 2012
  • Operating cash inflow increased to DKK 4.6 billion from DKK 2.9 billion in the first half of 2012, primarily reflecting a decrease in funds tied up in working capital and the higher EBITDA
  • First-half 2013 net investments amounted to DKK 3.2 billion against DKK 6.1 billion in the first half of 2012. Gross investments amounted to DKK 8.4 billion and related primarily to development of wind activities and gas and oil fields, while disposals related to the Swedish hydro power company Kraftgården (DKK 3.3 billion) and the Polish onshore wind business (DKK 1.8 billion)
  • Interest-bearing net debt decreased by DKK 0.5 billion from the end of 2012 to DKK 31.4 billion

As part of DONG Energy’s 2020 strategy, which was presented on 27 February of this year, a number of measures were initiated to streamline and improve the efficiency of structures and processes with a view to enhancing the company’s competitiveness. This work has now been completed and will result in a reduction of 350-400 jobs. The initiatives are expected to reduce costs by DKK 0.3 billion in 2014.


CEO Henrik Poulsen:
“The first-half financial performance is a positive step in the right direction for DONG Energy. The Group’s earnings (EBITDA) are 18% ahead of the first half of 2012. The increase was mainly driven by earnings from the new offshore wind farms Anholt (DK) and London Array (UK) and also cost reductions.

At the same time, the Group has improved its debt/earnings ratio since the end of 2012 as a result of its stronger earnings and a small reduction in DONG Energy’s net debt. The development in net debt reflected divestment of non-core assets in the first half and significantly improved operating cash flows.

First-half profit after tax was depressed by impairment losses of DKK 1.0 billion and DKK 0.9 billion respectively on the gas-fired power station Enecogen in the Netherlands and the fields in the Siri area in Denmark.

The world’s largest wind farm, London Array (630 MW), was officially inaugurated on 4 July and Denmark’s largest wind farm, Anholt (400 MW), will be officially inaugurated at the start of September. With the successful completion of these two wind farms, DONG Energy has further cemented its position as the global leader in offshore wind. Wind Power’s earnings rose by DKK 0.9 billion in the first half.

Another significant and positive milestone in the first half was the redetermination of the large Norwegian gas field Ormen Lange, which led to an increase in DONG Energy’s ownership interest from 10.3% to 14.0%. This will naturally benefit the Group’s future earnings."
 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MN 100: Gencorp Insurance Group

The Company: Gencorp Insurance Group provides the Insurance and Surety needs of Marine Contractors, Vessel Operators and Shipyards throughout the country and Caribbean.

MN 100: Bordelon Marine

The Company: Founded in 1979, Bordelon Marine is a leading provider of Marine Transportation services operating in the Gulf of Mexico and around the world. The

MN 100: Bouchard Transportation

The Company: Bouchard Transportation’s history dates back to its incorporation in 1918 by founder, Capt. Fred Bouchard, the youngest tugboat captain in the Port of New York.

Offshore

MN 100: Bordelon Marine

The Company: Founded in 1979, Bordelon Marine is a leading provider of Marine Transportation services operating in the Gulf of Mexico and around the world. The

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Yamal LNG Arctic Project in Doldrums

The massive $27 billion Yamal LNG liquefied-natural-gas venture in the Arctic Circle, a centerpiece of President Vladimir Putin’s plan for Russia has been squeezed by U.

Finance

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Oil Plunge Deepens High-yield Gloom

US crude fell to a more than six-year low this week, clouding the picture for a high-yield energy sector that already faces a significant cull when credit lines are reevaluated in autumn.

NASSCO Invests in Facilities, Equipment and People

General Dynamics NASSCO has invested several hundred million in capital projects as part of its efforts to increase efficiencies via  modular shipbuilding, including:

Offshore Energy

MN 100: Bordelon Marine

The Company: Founded in 1979, Bordelon Marine is a leading provider of Marine Transportation services operating in the Gulf of Mexico and around the world. The

Yamal LNG Arctic Project in Doldrums

The massive $27 billion Yamal LNG liquefied-natural-gas venture in the Arctic Circle, a centerpiece of President Vladimir Putin’s plan for Russia has been squeezed by U.

MHI, SBG Invest in Wind Energy Startup Altaeros Energies

Mitsubishi Heavy Industries, Ltd. ("MHI") and the Suhail Bahwan Group ("SBG") have invested in Altaeros Energies, a Massachusetts-based technology company, to

 
 
Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2830 sec (4 req/sec)