ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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ReVIew of BusIness aReas’ PERFORMANCE<br />
Performance<br />
The financial and environmental performance of each of<br />
the Group’s five business areas in <strong>2011</strong> is commented on in<br />
the following.<br />
Exploration & Production<br />
performance highlights <strong>2011</strong> 2010<br />
Volumes<br />
Oil and gas production million boe 26.4 24.4<br />
- oil million boe 9.3 9.0<br />
- gas<br />
Financial performance<br />
million boe 17.1 15.4<br />
Revenue DKK million 10,469 8,264<br />
EBITDA<br />
EBITDA adjusted<br />
DKK million 5,684 5,051<br />
for hydrocarbon tax DKK million 4,208 4,085<br />
EBIT DKK million 3,204 3,101<br />
Adjusted operating<br />
profi t DKK million 1,628 2,036<br />
Gross investments DKK million (5,626) (4,023)<br />
Capital employed<br />
Capital employed DKK million 18,186 17,122<br />
PPE under construction DKK million (8,381) (6,357)<br />
Exploration assets<br />
Production assets<br />
transferred from PPE<br />
under construction in<br />
DKK million (1,611) (975)<br />
the past six months DKK million (335) (417)<br />
Adjusted capital<br />
employed DKK million 7,859 9,373<br />
Environment<br />
EU ETS CO2 emissions<br />
million<br />
tonnes 0.1 0.1<br />
Gas fl aring million Nm 3 8 32<br />
Oil discharged to sea tonnes 16 8<br />
Reinjection of<br />
produced water on<br />
production platforms % 68 78<br />
volumes<br />
Oil and gas production was up 8% at 26.4 million boe in <strong>2011</strong>.<br />
Oil production was 3% ahead at 9.3 million boe, primarily<br />
due to the start-up of production at the Trym oil and<br />
gas field. Production from Siri was lower due its periodical<br />
closure as a result of tightened safety precautions while the<br />
platform is being repaired.<br />
Gas production, which came primarily from the Ormen<br />
Lange field in Norway, rose by 11% to 17.1 million boe in <strong>2011</strong>,<br />
representing 65% of total production. 18% of production<br />
came from Danish fields and 82% from Norwegian fields.<br />
financial performance<br />
Revenue was DKK 10.5 billion, DKK 2.2 billion ahead of<br />
2010. Revenue benefited from the higher oil and gas prices<br />
and higher production. Oil price hedging had a negative<br />
impact due to the higher oil prices.<br />
EBITDA increased by DKK 0.6 billion to DKK 5.7 billion in<br />
<strong>2011</strong>, primarily due to the increase in revenue, which was<br />
partly offset by higher exploration costs. Costs for the repair<br />
of the subsea structure at the Siri platform were<br />
DKK 0.8 billion in <strong>2011</strong>, of which DKK 0.6 billion related to<br />
the permanent repair solution. The repair work on the Siri<br />
platform is expected to be completed in 2013.<br />
EBIT was up DKK 0.1 billion on 2010, which was less<br />
than the increase in EBITDA as a result of higher depreciation<br />
in Norway, primarily reflecting the start-up of production<br />
at Trym.<br />
Environment<br />
Discharges of oil to sea together with produced water<br />
from the oil and gas exploration activities amounted to<br />
16 tonnes in <strong>2011</strong> against 8 tonnes in 2010. The increase<br />
mainly reflected significantly higher volumes of produced<br />
water at the older Norwegian fields Ula and Gyda, as a<br />
natural outcome of their production patterns.<br />
On the Siri platform, which is operated by <strong>DONG</strong><br />
<strong>Energy</strong>, 2.2 tonnes of oil was discharged, compared with<br />
2.7 tonnes in 2010. The reduction primarily reflected an<br />
unchanged cleaning efficiency and increased reinjection of<br />
produced water into the reservoir.<br />
Reinjection of oil-containing produced water was reduced to<br />
68%, overall, compared with 78% in 2010, while reinjection<br />
from the Siri platform improved from 94% to 97% in <strong>2011</strong>.<br />
<strong>DONG</strong> <strong>Energy</strong>’s share of gas flaring on the Siri platform<br />
was 3 million Nm3 in <strong>2011</strong>, matching the 2009 level, which<br />
led to a decrease in EU ETS CO emissions. The unusually<br />
2<br />
high level of gas flaring on the Siri platform in 2010, 29<br />
million Nm3 , was due to challenges related to treatment of<br />
the gas from the new satellite platform Nini Øst, which is<br />
connected to the Siri platform.<br />
Wind Power<br />
36<br />
manaGEmEnt’s rEviEw – <strong>DONG</strong> ENERGY GROUP <strong>ANNUAL</strong> <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>REPORT</strong> <strong>2011</strong> <strong>2011</strong><br />
performance highlights <strong>2011</strong> 2010<br />
Volumes<br />
Electricity generation,<br />
wind and hydro TWh 4.4 4.0<br />
Financial performance<br />
Revenue DKK million 4,312 2,952<br />
EBITDA DKK million 1,799 1,730<br />
EBIT<br />
Adjusted operating<br />
DKK million 856 959<br />
profi t DKK million 861 979<br />
Gross investments<br />
Capital employed<br />
DKK million (10,872) (6,378)<br />
Capital employed DKK million 29,443 21,097<br />
PPE under construction DKK million<br />
Production assets<br />
transferred from PPE<br />
under construction in<br />
(13,859) (7,483)<br />
the past six months<br />
Adjusted capital<br />
DKK million (1,851) (792)<br />
employed DKK million 13,733 12,822