ANNUAL REPORT 2011 - DONG Energy

ReVIew of BusIness aReas’ PERFORMANCE
financial performance
Revenue was down DKK 1.1 billion at DKK 10.7 billion in
2011 due to lower electricity and heat generation and lower
electricity prices in Denmark. The decline was partly offset
by higher sales of system services etc. to Energinet.dk and
the full-year effect of the new gas-fired power stations in
the UK (Severn) and Norway (Mongstad), which became
operational at the end of 2010.
EBITDA was DKK 2.3 billion in 2011, in line with 2010.
The new gas-fired power stations had a positive effect on
EBITDA, but this was offset by lower earnings from the
Danish power stations due to lower electricity and heat
generation and a significantly lower spread.
EBIT increased by DKK 0.2 billion to DKK 0.8 billion in
2011. The improvement relative to EBITDA reflected impairment
losses on small-scale power stations in 2010.
Environment
Danish power station EU ETS CO emissions totalled 9.5
2
million tonnes compared with 11.1 million tonnes in 2010.
The decline reflected lower generation.
There were four significant environmental incidents in
2011. At Kyndby power station, there was an increased release
of nitrogen after operating problems at the wastewater
treatment plant. At Stigsnæs power station, there was a spill
of 8 m3 of fuel oil, partly onto soil and partly into a tank yard
with a concrete base. In addition, there were two spills of
significant volumes of oil onto soil from the oil storage tank
facility in Skælskør. In all cases, the cleaning up of the areas
were accepted by the environmental authorities.
Energy Markets
performance highlights 2011 2010
Volumes
Gas sales TWh 122.3 118.5
Electricity sales
Electricity generation,
TWh 9.9 10.4
thermal TWh 3.4 0.9
Financial performance
Revenue DKK million 33,689 31,516
EBITDA DKK million 1,963 2,959
EBIT
Adjusted operating
DKK million 778 2,394
profi t DKK million 751 2,386
Gross investments DKK million (333) (477)
Capital employed
Capital employed DKK million 6,553 4,327
PPE under construction DKK million
Adjusted capital
(133) (106)
employed DKK million 6,420 4,221
Environment
EU ETS CO2 emissions
38
manaGEmEnt’s rEviEw – DONG ENERGY GROUP ANNUAL ANNUAL REPORT REPORT 2011 2011
million
tonnes 1.2 0.5
Gas fl aring million Nm 3 1.0 1.0
volumes
Gas sales (incl. sales to own power stations) increased by 3%
to 122.3 TWh, reflecting significantly higher sales on hubs.
Wholesale sales were lower, on the other hand, primarily due
to milder weather than in 2010. This led to lower sales in Denmark,
Sweden and Germany and to own power stations.
Electricity sales were 9.9 TWh, a decrease of 5% on
2010. Electricity generation from the gas-fired Severn
power station, which became operational in 2010,
amounted to 3.2 TWh in 2011. Both units were shut down
following damage to both turbines in July 2011. One unit