DONG Posts Strong Results for First Half of 2008
The Supervisory Board of DONG Energy A/S has today approved the interim financial report for the first half of 2008, which developed as follows compared with the first half of 2007:
- Revenue was DKK 27,820 million versus DKK 20,177 million
- EBITDA was DKK 6,651 million compared with DKK 4,754 million, with the following distribution between DONG Energy's four business segments:
- Exploration & Production DKK 2,673 million, up from DKK 897 million
- due to increased production and higher oil and gas prices
- Generation DKK 1,876 million, down from DKK 2,410 million due to lower thermal production, higher fuel prices and less positive effect of price hedging
- Distribution DKK 966 million, up from DKK 807 million, mainly reflecting lower costs
- Markets DKK 1,264 million, up from DKK 790 million due primarily to increased gas sales and higher gas selling prices
- Profit after tax was DKK 3,082 million versus DKK 2,103 million. Profit after tax for the first half of 2008 includes gain on divestment of the 132kV transmission grid of DKK 477 million
"It was a satisfactory financial first half which, coupled with our market and price expectations for the second half, enables us to raise our full-year 2008 profit outlook," said CEO Anders Eldrup. He continued, "The sound results for the first half benefited from the fact that the effects of DONG Energy's investment in the Norwegian Ormen Lange gas field in 2005 are now feeding through. Conversely, earnings from power generation remain very low, being held back by high and rising coal and CO2 prices."
2008 profit outlook raised
EBITDA and profit after tax for 2008 are now expected to significantly outperform 2007, when EBITDA was DKK 9.6 billion and profit after tax DKK 3.3 billion. The outlook has been raised compared with the outlook expressed in connection with the interim financial report for the first quarter of 2008 on May 15, 2008, when EBITDA and profit after tax were expected to be on a par with 2007.
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