Results affected by low energy prices and transition to green energy accelerated
The Supervisory Board of DONG Energy A/S has today approved the interim
financial report for the first nine months of 2009, which developed as follows
compared with the first nine months of 2008:
Revenue was down DKK 5,821 million at DKK 35,791 million, reflecting
significantly lower oil, gas and power prices. This was partly offset by higher
gas production from the Ormen Lange field
EBITDA was down DKK 4,163 million at DKK 6,830 million, primarily due to
lower revenue and the effects of timing differences related to the huge
fluctuations in market prices for oil, gas and coal
Profit after tax was DKK 1,081 million versus DKK 5,177 million, partly due
to the recognition of a DKK 508 million impairment loss on disposal of the
fibre optic network
Net cash inflow from operating activities increased by DKK 2.2 billion to DKK
10.2 billion. The improvement mainly reflects a reduction in working capital
DONG Energy invested DKK 13 billion in new activities and existing
facilities, including oil and gas fields, gas-fired power station projects in
Wales and the Netherlands, wind farms, and the company A2SEA, which installs
offshore wind turbines
The wind farms Horns Rev 2 in Denmark and Storrun in Sweden were inaugurated
in the third quarter, and test production started from Gunfleet Sands 1 and 2
in the UK and Karnice in Poland
”The gas and power markets are still suffering from declining demand and low
prices. To adjust to this situation, we are implementing substantial cost
reductions and undergoing a transition to more green energy production. One of
the ways in which we are doing this is by shelving development projects for
coal-fired power stations in Scotland, the UK and Germany. In continuation of
the shutdown of two Danish coal-fired units last year, a further two Danish
coal-fired units will be shut down from April 2010, as a consequence of low
demand. DONG Energy's overall coal-based power station capacity in Denmark will
consequently have been reduced by around 25%. This will strengthen our
financial position and accelerate the transition to a greener profile for our
company”, says CEO Anders Eldrup.
Outlook for 2009
The EBITDA outlook for 2009 remains unchanged and EBITDA is still expected to
be significantly down on 2008. Profit after tax is also expected to be
significantly down on 2008, the expectation concerning profit after tax
remaining unchanged, apart from the impairment loss on the fibre optic network.
As already expected this includes a significantly weaker fourth quarter than
the previous three quarters.
Further information:
Louise Münter
Media Relations
Telephone: +45 9955 9662
Morten Hultberg Buchgreitz
Investor Relations
Telephone: +45 9955 9686
DONG Energy is one of the leading energy groups in Northern Europe. We are
headquartered in Denmark. Our business is based on procuring, producing,
distributing and trading in energy and related products in Northern Europe. We
have approx. 6,000 employees and generated more than DKK 60 billion (EUR 8.2
billion) in revenue in 2008.
For further information, see www.dongenergy.com