Danish energy company DONG Energy is reviewing strategic options regarding the future of its oil & gas business and has hired J.P. Morgan to conduct a preliminary market assessment.
However, DONG has not made a decision to divest the oil & gas business yet, the company said in response to recent media reports.
In connection with its recent initial public offering (IPO), DONG confirmed its intention to build a world-class clean energy company with a portfolio based on leading competences in offshore wind, bioenergy and green distribution and customer solutions.
The company further said that it would manage its oil & gas business for cash, and that future cash flows from the oil & gas business would be used to fund further investments in renewable energy.
As such, it was confirmed that the oil & gas business was not considered a long-term strategic commitment for DONG Energy.
The company’s previously announced outlook for the 2016 financial year has remained unchanged.