DENMARK’S Dong Energy has signalled its intention to exit the oil and gas industry.
The move comes as the company, which offloaded a package of North Sea assets to Faroe Petroleum for £28 million in July, puts its full weight behind its growing renewables operations.
Dong currently has seven large offshore windfarms under development, having received permission from the UK Government to build the Hornsea Project Two windfarm 89 kilometres off the Yorkshire coast.
The project will consist of 300 turbines and have a capacity of up to 1.8 gigawatts (GW), enough to generate enough electricity to power 1.6 million homes.
Dong chief executive and president Henrik Poulsen said: “We have decided to initiate a process with the aim of ultimately exiting from our oil and gas business. This should be seen in the context of Dong Energy’s strategic transformation towards becoming a global leader in renewables and a wish to ensure the best possible long-term development opportunities for our oil and gas business. There can be no assurance as to the outcome or the timing of the completion of the process.”
Dong said its oil and gas division had delivered a “strong operational performance” in the first nine months of the year.
Earnings before interest, tax, depreciation and amortisation rose by seven per cent to DKK 4.8 billion (£570m) in the third quarter, boosted by a 19 per cent increase in wind power and a lump sum payment linked to the renegotiation of a gas purchase contract.
The company reported profits of DKK 3.3 bn in the third quarter, DKK 2.9bn higher than last year.
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