Dong Posts Outstanding 3Q Results
The Supervisory Board of DONG Energy A/S has today approved the interim financial report for the first nine months of 2008, which developed as follows compared with the first nine months of 2007:
- Revenue was DKK 41,612 million versus DKK 27,401 million
- EBITDA was DKK 10,993 million compared with DKK 6,443 million, with the following distribution between DONG Energy's four business segments:
- Exploration & Production DKK 4,106 million, up from DKK 1,469 million due to higher production and higher oil and gas prices
- Generation DKK 2,454 million, down from DKK 2,788 million due to lower thermal production and lower positive effect of price hedging
- Distribution DKK 1,311 million, up from DKK 1,137 million, mainly reflecting lower costs
- Markets DKK 3,268 million, up from DKK 1,345 million due primarily to increased gas sales, higher gas selling prices and a positive time lag effect driven by rising oil prices.
- Profit after tax was DKK 5,177 million versus DKK 2,211 million
"For the first nine months of 2008 earnings increased in almost all DONG Energy's business segments. Growth was particularly strong in Exploration & Production and Markets, predominantly reflecting increasing production from the Norwegian gas field Ormen Lange and a substantial positive time lag effect driven by the high oil prices during the period under review," said CEO Anders Eldrup. He continued, "Based on the strong financial development in the third quarter we expect our 2008 results to be significantly better than 2007 - despite anticipated lower prices in international markets in the last quarter of the year.”
Outlook for 2008
EBITDA and profit after tax for 2008 are expected to be significantly higher than 2007, when EBITDA was DKK 9.6 billion and profit after tax DKK 3.3 billion. The results reported for the third quarter exceeded the outlook
expressed in the interim financial report for the first half and more than make up for the fact that the fourth-quarter results are expected to be lower than forecast due to recent sharp falls in oil prices.