Dong issues 2012 profit warning

DENMARK: Dong Energy has issued a profit warning for 2012, forecasting full-year EBITDA to go down by about 10% on last year.

Not satisfied... Dong acting CEO Carsten Krogsgaard Thomsen
Not satisfied... Dong acting CEO Carsten Krogsgaard Thomsen

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However, its wind energy division achieved sharp increases in profit and revenue during the first six months (H1) of the year. Further growth of Dong’s wind business is expected soon, thanks to new UK and Danish offshore capacity coming online during H2.

Acting chief executive, Carsten Krogsgaard Thomsen, commented: "We are not satisfied with our H1 results." Dong’s group-wide EBITDA was down 27%. The company insists that next year’s profit will be "significantly" above that of 2011 and 2012.

As the world’s leading offshore wind developer, Dong should be pleased by the strong results posted by its wind power division, which accounted for almost 23% of group EBITDA in H1 – DKK1.5bn (€202m) out of group-wide DKK6.6bn.

Additional wind energy output was delivered by UK offshore wind farm, Walney 1, which reached "full production" during H1. Walney 2 also began to come online. These two projects, combined with additional onshore wind capacity in Denmark and Poland, pushed Dong’s H1 hydro and wind electricity up to 2.3TWh. This represented an increase of 9.5% on the same period last year.

In March, Dong Energy has said it is to invest DKK 10 billion (€1.34 billion) a year on developing its offshore project portfolio.

The comments were made by the former chief executive Anders Eldrup who said the investment in offshore was to cover a decline in coal and gas fuelled power plants. Dong said it would continue with the investment plan despite Eldrup's departure.

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