Oct 31, 2014 - Danish state-owned utility Dong Energy A/S today reported a net profit of DKK 857 million (USD 144.7m/EUR 115m) for the first nine months of 2014, up from only DKK 52 million a year ago.
The company’s performance so far this year has been boosted by higher earnings from its wind business. More specifically, the improved bottom line result included gains on the sale of half of Dong’s 50% stake in the 630-MW offshore wind farm London Array 1 and the disposal of a 50% interest in the 210-MW Westermost Rough wind project off Yorkshire.
Higher electricity output during the period also contributed to the good result, Dong Energy, which is focused on offshore wind projects and oil and gas exploration and production, explained. Meanwhile, falling gas prices had a negative impact on earnings. The thermal power business also saw profits decline.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose to DKK 13.03 billion for the nine months from DKK 11.2 billion previously. Wind EBITDA, in particular, grew to DKK 5.24 billion from DKK 3.49 billion. For the whole of 2014, Dong expects group EBITDA of over DKK 16 billion, it said today.
Dong Energy’s revenue in January-September 2014 amounted to DKK 49.92 billion, down from DKK 53.19 billion a year earlier. The wind power segment’s revenues declined to DKK 7.45 billion from DKK 9.01 billion as a result of capacity divestment.
In the first nine months of 2014, the company made gross investments of DKK 11.2 billion, mainly related to its offshore wind and oil and gas businesses.
(DKK 10 = USD 1.689/EUR 1.343)
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