Completed transformation into a renewables company
Henrik Poulsen, CEO of DONG Energy, said:
“Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the Oil & Gas business. With the agreement with INEOS we’ve obtained just that.”
Henrik Poulsen concluded: “The transaction completes the transformation of DONG Energy into a leading, pure play renewables company.”
The transaction is expected to result in a gain on sale of enterprises of DKK 2.5 billion which includes the contingent payment related to the Fredericia stabilisation facility. The gain will be presented as part of net profit from discontinued operations in DONG Energy's financial statements after closing.
Of the USD 1,050 million unconditional consideration, USD 250 million (DKK 1.7 billion) will be payable from 2018 to 2020.
Closing of the transaction is subject to regulatory approvals and certain other third party approval is expected to take place in the third quarter of 2017.
At closing of the transaction, approximately 440 employees of the DONG Energy group working for Oil & Gas will transfer to employment with the INEOS group.