Dong wind revenues jump 55%

DENMARK: Dong Energy saw revenues from its wind power division hit DKK 12 billion (EUR 1.6 billion) in 2013, a 55% increase on the previous year, offsetting poor performance elsewhere in the company.

The wind division helped offset poor performance elsewhere
The wind division helped offset poor performance elsewhere

This led to an operating profit of DKK 1.9 billion for the wind business, up from DKK 715 million in 2012.

Dong put this down to higher electricity output, as well as income from contracts for the construction of the Anholt and Borkum Riffgrund 1 offshore wind farms for co-investors, and offshore transmission assets in connection with UK wind farms.

But while operating profit was up, it increased less than earnings before interest, tax, depreciation and amortisation (EBITDA), which hit DKK 4.2 billion from DKK 2.4 billion. This was due, Dong said, to the depreciation of new wind farms and impairment losses of DKK 300 million on capitalised project development costs.

Significantly, the division grew its return on capital employed from just 0.5% in 2012 to 4.6% last year.

The company also bolstered its cash position with the sale of onshore wind assets, making DKK 1.8 billion on the sale of Polish wind farms and DKK 698 million from the shedding of Danish onshore projects.

Overall, the energy firm recorded an EBITDA of DKK 15 billion, up from DKK 8.6 billion, and above the company's own outlook of DKK 13.5-14.5 billion.

However, post-tax, Dong made a loss of DKK 1 billion, down from DKK 4 billion a year before.

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