ANNUAL REPORT 2011 - DONG Energy

was brought back online in October 2011, while the other
unit is expected to be brought back online in the first half
of 2012. Both units are running at reduced output until the
repairs have been completed. The gas-fired Enecogen
power station in the Netherlands became operational at
the end of 2011, generating 0.2 TWh.
financial performance
Revenue increased by DKK 2.2 billion to DKK 33.7 billion
due to higher electricity generation and gas sales and
higher gas sales prices than in 2010.
EBITDA was DKK 2.0 billion, DKK 1.0 billion down on
2010, primarily reflecting lower earnings from gas sales under
fixed-priced and oil-indexed contracts than in 2010.
Renegotiation of gas contracts had a significant positive
effect of around DKK 1 billion in 2011, while the new gasfired
power stations in the UK and the Netherlands depressed
EBITDA due to the low green spark spreads. The
consolidated EBITDA effect of the new gas-fired power stations
was neutral.
EBIT was down DKK 1.6 billion at DKK 0.8 billion in 2011
due to the lower EBITDA and a DKK 0.6 billion impairment
loss on offshore gas pipelines in the first half of 2011.
Environment
EU ETS CO emissions rose compared with 2010, as 2011 was
2
the first full year of operation for the Severn power station. A
small portion of CO emissions was due to flaring at the Ny-
2
bro gas treatment plant. This portion was in line with 2010.
Sales & Distribution
performance highlights 2011 2010
Volumes
Gas sales TWh 20.3 24.2
Gas distribution TWh 9.9 11.4
Electricity sales TWh 7.6 8.2
Electricity distribution
Oil transportation,
TWh 8.8 9.1
Denmark million bbl 72 78
Financial performance
Revenue DKK million 13,009 14,185
EBITDA DKK million 2,027 2,036
EBIT
Adjusted operating
DKK million 566 1,057
profi t DKK million 584 1,072
Gross investments
Capital employed
DKK million (810) (858)
Capital employed DKK million 10,944 12,064
PPE under construction DKK million
Production assets
transferred from PPE
under construction in
(530) (507)
the past six months
Adjusted capital
DKK million (447) (511)
employed DKK million 9,967 11,046
volumes
Gas sales were 20.3 TWh, down 16% on 2010, primarily
reflecting the milder winter than in 2010 and growing competition
in the Danish market, with a resulting decline in
market share.
Gas distribution was also affected by the milder winter,
amounting to 9.9 TWh, a decrease of 13% on 2010.
There was also a small decline in both distribution and
sales of electricity and in transportation in the oil pipeline
compared with 2010.
financial performance
Revenue was down DKK 1.2 billion, at DKK 13.0 billion, primarily
reflecting lower gas volumes being sold due to intensifying
competition and milder weather in 2011 as well
as a fall in payments recovered from consumers on behalf
of Energinet.dk. These collected payments have no EBITDA
effect.
The lower revenue was offset by a lower cost level.
EBITDA was consequently DKK 2.0 billion in 2011, the
same level as the previous year.
EBIT was down DKK 0.5 billion, amounting to DKK 0.6
billion in 2011. The decline primarily reflected a DKK 0.3
billion impairment loss on goodwill related to the Dutch
sales subsidiary in 2011 due to changed pricing in the
Dutch market.
Environment
A significant environmental incident occurred in 2011 in
connection with the establishment of a motorway, when a
gas pipe suffered excavation damage by the contractor,
resulting in a leak of 36 thousand m3 of methane. After the
fracture, the gas supply was shut off immediately to prevent
a major gas leak. Internal and external emergency plans
functioned as planned and the damage was rapidly repaired.
DONG ENERGY DONG ENERGY GROUP ANNUAL REPORT 2011 – manaGEmEnt’s rEviEw 39