DONG Energy

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DONG Energy
State
Traded as Nasdaq CopenhagenDENERG
Industry Oil and gas
Electricity generation
Predecessor Dansk Naturgas A/S
Elsam
Energi E2
NESA
Københavns Energi
Frederiksberg Forsyning
Founded 2006 (2006)
Headquarters Fredericia, Denmark
Key people
Henrik Poulsen (CEO)[1]
Thomas Thune Andersen (Chairman)
Products Natural gas
Oil
Electricity
Services Gas distribution, Oil and Gas exploration and drilling
Revenue 54.598 billion DKK (2010)[2]
Increase 18.5 billion DKK (2015) [2]
Decrease (12.1) billion DKK (loss) (2015) [2]
Number of employees
6,700 (2015)[3]
Website www.dongenergy.com

DONG Energy (formerly Dansk Naturgas and Dansk Olie og Naturgas, abbreviated DONG) is an integrated energy company based in Fredericia, Denmark. Since its inception, DONG has expanded and now DONG is the largest energy company in Denmark.

History[edit]

The Danish state-owned company Dansk Naturgas A/S was founded in 1972 to manage gas and oil resources in the Danish sector of the North Sea. After some years, the company was renamed to Dansk Olie og Naturgas A/S (DONG), meaning Danish Oil and Natural Gas. At the beginning of the decade of the 2000s, DONG started to expand itself into the electricity market by taking long positions in electricity companies. In 2005, DONG acquired and merged Danish electrical power producers Elsam and Energi E2 and public utility (electricity distribution) companies NESA, Københavns Energi and Frederiksberg Forsyning. The result of the merger was the creation of DONG Energy. The merger was approved by the European Commission on 14 March 2006.

In 2007, DONG Energy entered into the Dutch market.[4] In 2010, it started a cooperation with Dutch De Nederlandse Energie Maatschappij.[5] However, in 2014 DONG Energy withdrew its consumer activities from the Dutch market.[6][7] In 2010, DONG divested Norwegian power companies Salten and Nordkraft.[8] In September 2013, DONG sold a power cable accessing the London Array wind farm to its partners, E.ON and Masdar for around $728 million.[9]

As part of a restructuring plan, in January 2014 DONG sold an 18% stake to New Energy Investment S.a.r.l., a subsidiary of Goldman Sachs, while Danish pension funds, ATP and PFA Pension acquired 4.9% and 1.8% accordingly. The deal was heavily criticised and caused a split of the ruling coalition of Helle Thorning-Schmidt.[10] Six cabinet ministers and the Socialist People's Party) withdraw from the government.[11] On 9 June 2016, some of these shares were sold in an IPO at Copenhagen Stock Exchange.[12]

In 2015, DONG had a deficit of 12 billion DKK, the largest of any Danish company ever.[13]

In 2016, DONG was voted number 11 on the Clean200 list.[14][15]

Operations[edit]

DONG Energy considers Denmark, Sweden, United Kingdom and Germany as core markets of corporation.

Oil and gas exploration and production[edit]

DONG Energy's primary focus is deep drilling. DONG Energy's core areas of oil and gas exploration and production lay in southern part of the Norwegian North Sea and the Danish part of the North Sea, Barents Sea, west of Shetland, and in the mid Norway (gas production). The reserve base is expected to be 446 million boe. In 2005, DONG Energy acquired 10.34% in the Ormen Lange gas field (operated by Shell). The share of gas reserves allocated to DONG Energy are approximately 40 billion cubic metres (1.4 trillion cubic feet).

DONG Energy owns long pipelines which extend from the Danish part of the North Sea to Nybro and the Swedish gas transmission network (Nova Naturgas). DONG Energy co-owns the Tyra West – F3 pipeline pipelines, which create a link from the North Sea Danish section to the Netherlands natural gas hub in Den Helder, the DEUDAN pipeline from Jutland to north of Hamburg in Germany, and the Langeled pipeline from Nyhamna terminal in Norway to Easington in the UK. DONG Energy owns a share of the Norwegian gas pipeline system.

The company has announced its intention to sell off its oil and gas business in 2017.[16]

Power production[edit]

DONG Energy is the largest power producer in Denmark with market shares of 49% for electricity production and 35% for heat production. It also owns power production facilities and projects in Germany, Sweden, The Netherlands, Norway and the United Kingdom.

DONG is the largest offshore wind farm company in the world.[16] In 2014 DONG divested its last onshore wind turbines, focusing on offshore wind power,[17] of which DONG had 3,000 MW in 2015;[18] a market share of 16%.[19] DONG surpassed 1,000 offshore wind turbines in 2016.[20] DONG built and operated the first large scale offshore wind farm in the world, the 160 MW Horns Rev until 2005,[21][22][23] and operates the 209 MW Horns Rev 2.[24][25]

In the United Kingdom DONG Energy operates Barrow and Burbo Bank offshore windfarms and will construct Walney Island and Gunfleet Sands I and II[26] wind farms.[27] In Norway DONG Energy has invested into hydro and wind power.[28]

In 2013 DONG Energy finished the construction of the 400 MW Anholt Offshore Wind Farm off the Danish island of Anholt in the Kattegat at a cost of 10 billion Danish kroner (€1.35 bn). DONG Energy was the only bidder in the process.[29][30][31] As of 2012, DONG Energy had a wind turbine capacity of 794 MW and planned to add another 594 MW in 2013.[32]

Dong Energy committed to building the 1,200 MW Hornsea wind farm in January 2016. The expected completion date for the project was 2020.[33][34]

DONG Energy is the largest shareholder (51%) of offshore wind turbine installer A2SEA,[35] while Siemens owns the other 49%.[36] DONG Energy also has 30% of subsea cabling installer CT Offshore.[37]

Fiber broadband[edit]

DONG Energy provides fiber broadband to its customers in northern Zealand.

Shareholders[edit]

Danish Government holds the majority of DONG Energy shares (50.1%). The rest of the shares are owned by New Energy Investment S.à r.l. (a subsidiary of Goldman Sachs), Capital Group Companies (5.01 %), SEAS-NVE, and smaller shareholders (each below 5 %).[38] According to a political agreement, the Danish Government shall maintain a majority in the company until 2025. Reduction of the ownership below 50% requires political agreement of Danish parties. An IPO and listing at the Copenhagen Stock Exchange was expected in the spring of 2008, but was suspended due to the situation of the international financial markets.[39]

Sponshorship[edit]

DONG Energy is main sponsor of the Danish men's national ice hockey team.

See also[edit]

References[edit]

  1. ^ Wichmann, Sonny (18 April 2012). "Henrik Poulsen bliver ny topchef i DONG" [Henrik Poulsen will be the new CEO of DONG]. Berlingske (in Danish). Retrieved 18 April 2012. 
  2. ^ a b c "Company announcement - annual report 2015" (PDF). DONG Energy A/S. 4 February 2016. 
  3. ^ "About us". DONG Energy A/S. 
  4. ^ "'Nederland is voor ons geen speeltuintje'" ['The Netherlands is for us not a playground']. NRC (in Dutch). 23 June 2007. Retrieved 8 April 2017. 
  5. ^ "DONG Energy strengthens its position in the Netherlands" (Press release). DONG Energy. 14 October 2010. Retrieved 8 April 2017. 
  6. ^ "Eneco neemt klanten en medewerkers over van DONG Energy Sales B.V." [Eneco acquires customers and employees from DONG Energy Sales B.V.] (Press release) (in Dutch). Eneco. 21 January 2014. Retrieved 8 April 2017. 
  7. ^ Ussing, Jakob; Pedersen, Signe Ferslev (21 January 2014). "Dong Energy siger farvel til skidt investering" [Dong Energy says goodbye to bad investment]. Berlingske (in Danish). Retrieved 8 April 2017. 
  8. ^ Divestment of stakes in Nordkraft and Salten Kraftsamband has been approved DONG Energy, 12 October 2010. Retrieved: 16 November 2010.
  9. ^ Schaps, Karolin (10 September 2013). "DONG sells link to world's largest wind farm for $728 million". Reuters. Retrieved 8 April 2017. 
  10. ^ Levring, Peter; Wienberg, Christian (30 January 2014). "Goldman Deal on Danish Energy Splits Copenhagen Coalition". Bloomberg. Retrieved 31 January 2014. 
  11. ^ Levring, Peter; Wienberg, Christian (6 February 2014). "In Denmark, Goldman Sachs Deal Ignites Political Crisis". Bloomberg Businessweek. Retrieved 12 February 2014. 
  12. ^ Nasdaq Copenhagen Welcomes DONG Energy To List On Its Main Market, GlobeNewswire.
  13. ^ Nielsen, Michael Korsgaard (4 February 2016). "DONG leverer det største underskud i danmarkshistorien" [DONG falls the largest deficit in the history of Denmark]. Berlingske (in Danish). Retrieved 1 October 2016. 
  14. ^ "Toyota, Tesla and Vestas ranked among world's top green companies". The Guardian. UK. 15 August 2016. Retrieved 5 September 2016. 
  15. ^ http://static1.squarespace.com/static/579bd6e8414fb5125750d050/t/57b1ea14d482e94594339e47/1471277588692/Clean200_Q3-16_AYS%2BCK_20160815.pdf
  16. ^ a b Clark, Pilita (17 March 2017). "Denmark's Dong Energy shifts from fossil fuels to renewables". Financial Times. Retrieved 8 April 2017. 
  17. ^ Fribo, Adam. "Dong sælger de sidste landmøller" Ingeniøren, 23 December 2014. Accessed: 24 December 2014.
  18. ^ Dong runder 3000 MW havmøllekapacitet Archived 22 May 2015 at the Wayback Machine.
  19. ^ "Offshore wind: Europe far ahead, Siemens largest by far". 19 August 2016. Retrieved 6 October 2016. 
  20. ^ "DONG Energy Surpasses 1,000 Wind Turbines Installed At Sea". CleanTechnica. 25 October 2016. Retrieved 24 November 2016. 
  21. ^ Horns Rev I Offshore Wind Farm, Denmark Power Technology. Retrieved: 27 October 2010.
  22. ^ Horns Rev 1 (Denmark) offshore wind farm 4C . Retrieved: 30 July 2010.
  23. ^ Horns Revolution Archived 14 July 2011 at the Wayback Machine., Modern Power Systems, 5 October 2002, accessed 14 April 2010.
  24. ^ Horns Rev 2 (Denmark) offshore wind farm 4C . Retrieved: 30 July 2010.
  25. ^ Horns Rev 2 LORC . Accessed: 10 December 2011.
  26. ^ Gunfleet Sands offshore wind farm (United Kingdom) 4C . Retrieved: 27 October 2010.
  27. ^ "DONG Energy Invests in UK Offshore Wind Farms". Oil Voice. 3 December 2007. Retrieved 16 December 2007. 
  28. ^ "DONG Energy Increases Stake in Norwegian Hydropower". Oil Voice. 7 December 2007. Retrieved 16 December 2007. 
  29. ^ Bjartnes, Anders (22 June 2010). "Dong gets green light for 400MW Anholt despite high prices". Recharge. Retrieved 23 June 2010. 
  30. ^ Hanne, Windemuller. Anholt Offshore Wind Farm will be the largest in Denmark Danish Energy Agency, 2 July 2010. Accessed: 27 November 2010.
  31. ^ Anholt Offshore Wind Farm
  32. ^ Wittrup, Sanne (1 November 2012). "Dong Energy øger vindkraften med 75 procent i 2013". Ingeniøren. Retrieved 1 November 2012. 
  33. ^ "Dong commits to Hornsea build", renews.biz, 3 February 2016 
  34. ^ World’s largest offshore wind farm to be built in the UK (press release), Department of Energy and Climate Change, 3 February 2016 
  35. ^ "Siemens catches wind with A2Sea move". Upstream Online. NHST Media Group. 29 June 2010. Retrieved 16 November 2010. 
  36. ^ Antitrust authority approves Siemens as equity partner in A2SEA DONG Energy, 13 October 2010. Retrieved: 16 November 2010.
  37. ^ DONG becomes co-owner of CT (in Danish) Maritime Denmark, 12 November 2010. Retrieved: 16 November 2010.
  38. ^ http://www.dongenergy.com/en/investors/shares/major-shareholders
  39. ^ "IPO and listing on the OMX Nordic Exchange Copenhagen" (Press release). DONG Energy. 8 January 2008. Archived from the original on 4 February 2014. Retrieved 31 January 2014. 

External links[edit]

External image
Map of DONG activities