Dong Energy A/S: 3rd Quarter Results

Dong Energy A/S meldet eine Verbesserung des Gewinns. Wir veröffentlichen die Mitteilung des dänischen Energiekonzerns, der einer der größten Investoren in Offshore-Windparks in Europa ist, dazu im Wortlaut.

Die untenstehende Meldung ist eine Original-Meldung des Unternehmens. Sie ist nicht von der bearbeitet. Die presserechtliche Verantwortlichkeit liegt bei dem meldenden Unternehmen.

Q3 2016 growth in operating profit of 7%

- Operating profit (EBITDA) increased by 7% to DKK 4.8 billion in Q3 2016. The
increase was driven by a 19% increase in Wind Power and a positive effect from
a lump sum payment received in connection with the completed renegotiation of a
gas purchase contract. The increase was partially offset by lower oil and gas
prices and reduced volumes from the Ormen Lange field. Underlying profit,
adjusted for items of non-recurring nature, increased by 5%

- Adjusted ROCE (last 12 months) was 15% compared with 8% at the end of
September 2015

- Profit for the period amounted to DKK 3.3 billion in Q3 2016, DKK 2.9 billion
higher than in Q3 2015. The increase was driven by higher EBITDA, lower
depreciation and a DKK 1.3 billion gain from the divestment of the gas
distribution grid to

- In Q3 2016, free cash flows amounted to DKK -1.9 billion compared with DKK
-5.4 billion in Q3 2015. The improvement was driven by the higher EBITDA, lower
net interest payments, lower tax paid and divestments

- Net debt increased from DKK 3.8 billion at the end of June 2016 to DKK 5.9
billion at the end of September 2016.

Commenting on the interim financial report, Henrik Poulsen, CEO and President,
'The Group continues to develop positively and according to our strategic and
financial plans. We maintain our outlook for 2016 of DKK 20-23 billion in
EBITDA and gross investments of DKK 18-21 billion.

We have decided to initiate a process with the aim of ultimately exiting from
our oil and gas business. This should be seen in the context of DONG Energy's
strategic transformation towards becoming a global leader in renewables and a
wish to ensure the best possible long-term development opportunities for our
oil and gas business. There can be no assurance as to the outcome or the timing
of the completion of the process.

O&G continues the substantial restructuring of the business and delivered a
strong operational performance in the first nine months. Cost performance
continues to improve, driven by continued renegotiation of supplier contracts,
reduced exploration spending and improved operational efficiency, with total
cash spend decreasing by 36% compared with the same period last year. We now
expect O&G to be cash flow positive in 2016, a year earlier than previously

We currently have seven large offshore wind farms under construction. The
construction programme totalling 4.4GW is well on track. In parallel, we
continue to shape our pipeline of offshore wind project opportunities for the
period beyond 2020.

In October, we inaugurated the biomass-converted Studstrup plant, which can now
supply CO2-free heat to 225,000 residents in Aarhus. The biomass conversion at
Avedoere is progressing according to plan and is expected to be finalised in Q4,
while the opening of the bio-converted Skaerbaek plant will take place in 2017.
The construction of the REnescience plant in the UK is on schedule, and we
expect to inaugurate the plant in 2017'.

Significant events after the interim financial report for H1 2016
DONG Energy has achieved significant milestones since the presentation of the
interim financial report for H1 2016:

- On 16 August, the UK government granted DONG Energy permission to build the
Hornsea Project Two offshore wind farm, located 89 kilometres off the Yorkshire
coast. The project will have a capacity of up to 1.8 GW and consist of up to
300 turbines. It will be able to meet the electricity needs of approximately
1.6 million UK homes. The project can participate in future auctions for CfDs
in the UK

- On 30 August, the Copenhagen Maritime and Commercial High Court announced its
ruling in a case concerning the former Elsam. The court did not rule in favour
of DONG Energy. The decision has been appealed

- On 6 September, DONG Energy completed another renegotiation of a
long-term-oil-indexed gas purchase contract with a satisfactory result. Lump
sum payments from the renegotiations of gas purchase contracts are expected to
amount to a total of DKK 3.8 billion in 2016

- On 30 September, DONG Energy divested the gas distribution grid to

- On 10 October, DONG Energy inaugurated the biomass-converted Studstrup CHP
plant. The commissioning makes a substantial contribution to our green
transformation and is a significant green milestone for DONG Energy

Outlook for 2016
The outlook for EBITDA and gross investments announced in the interim report
for H1 2016 is reaffirmed. We have previously communicated that the EBITDA
outlook is subject to completion of two farm downs in Wind Power. We completed
the farm down of Burbo Bank Extension in Q1, and we are currently in the
process of farming down our UK Race Bank and Walney Extension projects. We
expect to either complete one of these in Q4 2016 and one in 2017 or both of
them during 2017. Based on the achieved EBITDA up until September, including
lump sums of DKK 3.8 billion from gas contract renegotiations, we expect to be
within the EBITDA range of DKK 20-23 billion even in a scenario where no
additional farm down is completed in 2016:

- EBITDA (business performance) is expected to amount to DKK 20-23 billion in

- Gross investments for 2016 are expected to amount to DKK 18-21 billion.

Conference call
In connection with the presentation of the interim financial report, a
conference call for investors and analysts will be held on Tuesday, 8 November
2016 at 11:00am CET:

Denmark: +45 35 44 55 83
International: +44 203 194 0544

The conference call can be followed live:

Presentation slides will be available prior to the conference call:

The interim financial report can be downloaded at:

Further information
Investor Relations
Henrik Brunniche Lund
+45 99 55 97 22

Based in Denmark, DONG Energy (NASDAQ OMX: DENERG) is one of Northern Europe's
leading energy groups. Approximately 6,500 dedicated employees work with
developing, constructing and operating offshore wind farms, producing power and
heat from our power stations, supplying energy to private and business
customers and producing oil and gas. Consolidated revenue amounted to DKK 71
billion (EUR 9.5 billion) in 2015. For further information, see

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