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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DP World Inaugurates Jebel Ali Inspection Facility

DP World informs it has inaugurated the largest and latest container inspection facility at its flagship Jebel Ali Port in Dubai. The new facility is one of the

China Shipbuilder Rongsheng 2013 Revenue Freefall

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.

InterManager Welcomes New MLC Amendment

InterManager, the international trade association for the ship management industry, says it has welcomed the adoption of new measures to protect seafarers against abandonment.

Offshore

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Finance

China Shipbuilder Rongsheng 2013 Revenue Freefall

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.

InterManager Welcomes New MLC Amendment

InterManager, the international trade association for the ship management industry, says it has welcomed the adoption of new measures to protect seafarers against abandonment.

China's Japanese Ship Detention Linked to Shrine Spat

Japanese Prime Minister Shinzo Abe has sent a ritual offering to the Yasukuni Shrine, seen by critics as a symbol of Japan's past militarism, media reported on Monday,

Offshore Energy

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Years After BP U.S.Oil Spill: Compensation Battle Rages

Four years after the Deepwater Horizon spill, oil is still washing up on the long sandy beaches of Grand Isle, Louisiana, and some islanders are fed up with hearing from BP that the crisis is over.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1759 sec (6 req/sec)