Dong Energy doubles H1 net profit, ups 2015 forecast

Dong Energy A/S said on Wednesday it has more than doubled its first-half net profit to DKK 2.77 billion (USD 414m/EUR 375m), a result that has convinced the Danish state-owned utility to revise upwards its 2015 projections.

For comparison Dong’s H1 2014 net profit was DKK 1.43 billion.

“We are continuing to develop and invest in our market leading position in offshore wind,” said Henrik Poulsen, the group’s president and CEO.

Dong said the positive development in operations was due to higher generation from its offshore wind parks, finalised renegotiation of an oil-indexed gas purchase deal and lower costs in the Exploration & Production (E&P) segment.

In January-June 2015, earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 6% year-on-year to DKK 10.4 billion because of the positive development in the underlying business plus compensations. The result includes a DKK-1.5-billion gain on the sale of the company’s E&P licence interests, compared to a DKK-2-billion gain a year earlier, linked to the sale of offshore wind farms.

As a result of the positive H1 performance, the group has decided to lift its 2015 EBITDA guidance by DKK 1.5 billion to a range of DKK 17 billion to DKK 19 billion.

(DKK 1.0 = USD 0.148/EUR 0.134)

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