Operating profit at Dong doubled to Dkr19.1bn in 2016 compared with Dkr8.7bn in the year-ago period in a “highly satisfactory” performance from the company’s wind division.
The Danish giant said earnings before interest, taxes, depreciation and amortization (EBITDA) from wind doubled to around Dkr10bn “driven by higher activity from construction and divestment of offshore wind farms”.
Net profit for 2016 stood at Dkr12.2bn, a significant increase on the Dkr1bn recorded in 2015 which Dong said was primarily down to higher EBITDA.
In annual results published today Dong also said investment for the year totalled Dkr15bn, the majority of which focused on its expansion in offshore wind and up from 12.7Dkr in 2015.
Total EBITDA, including Dong’s oil and gas businesses, stood at Dkr25.6bn.
Chief executive Henrik Poulsen said the 2016 numbers “are highly satisfactory”.
“In 2016, we took important steps in the green transformation with the decisions to invest in a further three offshore wind farms, including Hornsea 1, which will be the largest in the world.
“We also completed the biomass conversion of two Danish power stations and initiated the construction of the world’s first commercial-scale REnescience plant in Northwich in the UK that converts unsorted household waste into green energy.”
In addition to the annual results Dong said its quarter four 2016 figures showed EBITDA of Dkr6.3bn up Dkr4.4bn on the same period last year.
This was driven by “higher activity” for construction contracts at its 258MW Burbo Bank 2 project in Liverpool Bay and a divestment of its 50% share in the 573MW Race Bank project off the east UK coast.
For 2017, Dong said EBITDA is expected to reach Dkr15-17bn corresponding to underlying growth of between 4% and 18%.
Investments for this year are expected to come in at around Dkr18-20bn “reflecting a continued high level of investment related to our offshore wind farms”.
Meanwhile, the company also said it will no longer use coal at its power stations by 2023.
“The decision is a result of the company’s vision to lead the way in the transformation to a sustainable energy system and to create a leading green energy company,” it said.
Image: Dong’s 258MW Burbo Bank 2 wind farm (Dong)
