Dong posted a 13% boost in operating profit in 2015 to Dkr18.5bn due to a “positive development in the underlying business”.
The Danish company said the result “can mainly be attributed to higher production from offshore wind, higher levels of activity in connection with the construction of offshore wind farms for co-investors, the completed renegotiation of an oil-indexed gas purchase contract and lower costs in oil and gas”.
The positives were “partly offset by lower oil and gas prices, lower oil and gas production and unfavourable market conditions for thermal power generation”, it added.
Operating profit in the wind business was up by 2% to Dkr6.2bn, although once divestment gains in 2014 are accounted the underlying profit growth was “significantly higher”. Revenues in wind were up 70%.
Dong posted a net loss of Dkr12bn, compared with a loss of Dkr5.3bn in 2014. This included impairment losses of Dkr15.8bn in connection with the company’s oil and gas business.
Total investment in the period was Dkr18.7bn, mostly in offshore projects including the 582MW Gode Wind and 320MW Borkum Riffgrund 1 in Germany and UK projects including the 210MW Westermost Rough and 258MW Burbo 2.
Gross investments for 2016 are expected to be up to Dkr23bn.
Dong chief executive Henrik Poulsen (pictured) said: “Towards 2020 we expect offshore wind and bioenergy to account for more than 80% of investments. The investment strategy will further reinforce Dong Energy’s position as a global leader in renewables and expand our strongholds in offshore wind, bioenergy, and green distribution and customer solutions.”
Image: Dong
