Denmark's DONG Books $1B in Impairments on Low Oil Prices

Reuters

COPENHAGEN, Feb 5 (Reuters) – Denmark's DONG Energy posted a larger net loss for 2014 than the previous year after booking 6.6 billion Danish crowns ($1 billion) in impairment charges as lower prices hit the value of its oil and gas fields.

The state-controlled company posted a net loss of 5.3 billion crowns versus a loss of 1.0 billion in 2013.

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to 16.4 billion crowns, up from 15 billion.

The Danish state owns a majority stake in DONG, which operates wind farms and power stations, has a gas distribution network and owns oil and gas fields in the Danish North Sea.

The government sold 18 percent of the company to a group of investors led by Goldman Sachs last January and expects to list the company on the Nasdaq Copenhagen stock exchange by 2018.

The company expects EBITDA in 2015 of between 15.5 billion and 17.5 billion crowns.

"EBITDA in 2015 will be negatively affected by the significant decline in oil and gas prices," DONG said in a statement.

"In the first quarter and sector quarter of 2015, EBITDA is expected to be lower than in the same quarters in 2014, as these were positively affected by gains on divestments in wind power." ($1 = 6.5390 Danish crowns)

(Reporting by Sabina Zawadzki; editing by Jason Neely)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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