ANNUAL REPORT 2011 - DONG Energy

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