Race Bank Farm-Down Lifts DONG’s 2016 Guidance
Denmark’s DONG Energy has increased its group operating profit (EBITDA) guidance for 2016 to DKK 24-25 billion from a previous range of DKK 20-23 billion.
The company’s Wind Power division is now expected to report EBITDA towards the high end of the DKK 10-12 billion range.
DONG has also specified its gross investments towards the lower end of the guided range of DKK 18-21 billion.
The increased guidance is triggered by the realisation of the farm-down of 50% of the Race Bank offshore wind farm.
Further, the increase is driven by strong operational performance and cost reductions in Oil & Gas, combined with results better-than-expected from both re-negotiations of gas contracts and from operations in Distribution & Customer Solutions, DONG said.
Henrik Poulsen, DONG Energy’s CEO, said: “We have had a really good year in DONG Energy and made significant strategic and operational progress in all business units. We have continued the green transformation and seen significant growth in our operating profit. All business units have delivered better than expected or to the high end of our expectations, and the divestment of 50% of the Race Bank Offshore Wind Farm has triggered the increase in our EBITDA guidance.”