Denmark

Denmark

Dong boosts earnings through offshore divestments

DENMARK: Dong Energy saw earnings from its wind activities increase in the first half despite a drop in revenues and generation.

Dong said divestments were key to its strong earnings
Dong said divestments were key to its strong earnings

The Danish energy firm's wind division reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of DKK 4.6 billion (EUR 617 million), more than the figure for the whole of last year.

This left wind accounting for 45% of the group's DKK 9.8 billion EBITDA in the first half of the year.

But the increase in earnings was down to the divestment of 50% of Dong's interests in the London Array and Westermost Rough offshore wind farms in he UK.

So while production from these offshore wind projects increased, Dong's share of the generated energy fell by 8% to 2.6TWh as a result of these divestments.

Revenue from wind activities also decreased, falling to DKK 5.7 billion, from DKK 6.8 billion at the same time last year.

This decrease was the result of lower electricity generation and lower income from construction contracts "in connection with the construction of offshore wind farms for co-investors", Dong said.

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