ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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• wind power: Development, construction and operation of<br />
wind farms in Denmark, the UK, Poland, Norway, Sweden and<br />
Germany as well as an ownership interest in a hydro electric<br />
station in Sweden.<br />
• thermal power: Generation and sale of electricity and heat<br />
from thermal power stations in Denmark as well as ownership<br />
of gas-fi red power stations in the Netherlands and the<br />
UK and a demonstration plant for production of secondgeneration<br />
bioethanol in Denmark.<br />
• <strong>Energy</strong> markets: Optimisation and risk management of<br />
<strong>DONG</strong> <strong>Energy</strong>’s energy portfolio, including trading in natural<br />
gas and electricity with energy producers and wholesale<br />
customers and on European energy hubs and exchanges.<br />
• sales & Distribution: Sales and distribution of electricity<br />
and gas to wholesale and end customers in Denmark,<br />
Germany, the Netherlands and Sweden.<br />
Further details of the Group’s reportable segments are given in<br />
Management’s review.<br />
activities <strong>2011</strong><br />
DKK million Exploration &<br />
Production<br />
External revenue 5,784 3,589 9,711 25,320 12,504 56,908<br />
Intragroup revenue 4,685 723 954 8,369 505 15,236<br />
revenue 10,469 4,312 10,665 33,689 13,009 72,144<br />
EBitDa 5,684 1,799 2,255 1,963 2,027 13,728<br />
Depreciation and amortisation (2,480) (943) (1,562) (585) (1,184) (6,754)<br />
Impairment losses - - 59 (600) (277) (818)<br />
Operating profi t (EBit) 3,204 856 752 778 566 6,156<br />
adjusted operating profi t 1 1,628 861 720 751 584 4,544<br />
1 Adjusted operating profi t is defi ned as EBIT corrected for hydrocarbon tax plus profi t of associates less the interest element of decommissioning<br />
obligations.<br />
Wind Power<br />
Geographical breakdown<br />
<strong>DONG</strong> <strong>Energy</strong> primarily sells products and services in the market<br />
in Northern Europe. A large part of the Group’s sales takes place<br />
via power exchanges and gas hubs in Europe, the physical location<br />
of which does not refl ect the Group’s market risks. Segment<br />
information in respect of geographical markets is determined<br />
by breaking revenue down, as far as possible, by customer location<br />
based on supply point. When delivery is made directly from<br />
production platforms in the North Sea, the fi nal supply point is<br />
not known to <strong>DONG</strong> <strong>Energy</strong>. In such cases, customer location is<br />
defi ned on the basis of invoicing address.<br />
Non-current assets are broken down geographically based on<br />
the physical location of the assets and comprise intangible assets<br />
and property, plant and equipment.<br />
No single customer accounts for more than 10% of consolidated<br />
revenue.<br />
Reference is made to note 4 for a breakdown of the Group’s sales<br />
by products and services.<br />
Thermal Power<br />
<strong>DONG</strong> ENERGY <strong>DONG</strong> ENERGY GROUP <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2011</strong> – COnsOliDatED finanCial statEmEnts<br />
73 77<br />
<strong>Energy</strong> Markets<br />
Sales &<br />
Distribution<br />
Reportable<br />
segments<br />
notes