Higher Energy Prices Ensure Strong Results for DONG Energy (Denmark)

The Board of Directors of DONG Energy has today approved the interim financial report for the first half of 2011 with the following outlook and key performance indicators compared with the first half of 2010:

• EBITDA was DKK 9.1 billion compared with DKK 8.4 billion in the first half of 2010. The increase was primarily due to higher energy prices and a positive effect from the renegotiation of gas contracts
• Operating cash inflow was DKK 6.8 billion compared with DKK 6.4 billion in the first half of 2010 due to the higher EBITDA, partly offset by an increase in tax paid
• Profit after tax was DKK 2.8 billion compared with DKK 3.5 billion in the first half of 2010. The decrease was mainly due to higher depreciation and an impairment loss on offshore gas pipelines
• Net investments were DKK 7.2 billion in the first half of 2011 and related primarily to development of wind activities and gas and oil fields
• Net interest-bearing debt increased by DKK 1.5 billion from the end of 2010 to DKK 23.6 billion at 30 June 2011.

Outlook

EBITDA for 2011 is still expected to be in line with 2010, matching the outlook in the 2010 annual report.

Anders Eldrup: ”The first-half 2011 results are sound and satisfactory, providing the basis for affirming our full-year 2011 EBITDA outlook in line with the record year 2010.”

Introduction of business performance income statement Unless otherwise stated, the financial results in this report are based on the new business performance income statement introduced in connection with the interim financial report for the first quarter of 2011.

The business performance results have been adjusted for temporary fluctuations in the market value of contracts, including hedging transactions, relating to other periods and therefore reflect the underlying financial performance of the Group in the reporting period.

[mappress]

Source: dongenergy, August 16, 2011