Orsted · OMXCOP:ORSTED
Orsted — DONG Energy — Q1 2009 Earnings Presentation
26 slides from Orsted's earnings presentation, 2009
Slide 1: Financials 2009 – 3 Month Interim
FINANCIALS 2009 3 MONTH INTERIM
Slide 2: Disclaimer
Disclaimer Certain statements in this p presentation are based on the beliefs of our management g as well as assumptions made by and information currently available to the management. Forward-looking statements (other than statements of historical fact) regarding our future results of operations, fi
Slide 3: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 3 month interim Questions Appendix 3
Slide 4: Highlights – 3 month interim
Highlights – 3 month interim Sound financial results despite current EBITDA PER BUSINESS SEGMENT financial environment Revenue up p with 4% 26% Exploration & Production EBITDA 43% Generation EBITDA fell with 17% DKK 2,653 Energy Markets Net income after tax of DKK 718m 14% million S l & Di S
Slide 5: Recent developments during 2009
Recent developments during 2009 Continued g growth in renewable energy gy March 2009 Agreement with Siemens Wind Power March 2009 Acquisition of the Polish onshore wind farm Karcino April 2009 Commencing construction of UK off shore wind park Walney II May 2009 Commencing construction of UK
Slide 6: Continued growth in renewable energy
Continued growth in renewable energy Industrialising g the construction of wind farms p y Renewable capacity Agreement with Siemens Wind Power to supply up to 500 Currently 811 MW renewable capacity is in production offshore wind turbines – up to 1,800 MW in capacity Increasing efficiency by p
Slide 7: Expanding thermal production outside Denmark
Expanding thermal production outside Denmark Decided upon p further 1,285 , MW of gas g fired Investments decided in 2009 capacity outside Denmark (projected capacity and expected production year) Severn, an approximately 850 MW plant in UK – to be commissioned end 2010 50% stake in Enecogen, ap
Slide 8: Market price development
Market price development Oil and g gas p prices ((monthly y average) g ) Hydro y balance ((weekly y average) g ) TWh USD/bbl (oil) EUR/MWh (gas) 20 135 30 125 Oil 27 10 115 Gas (TTF) 24 0 105 95 21 -10 85 18 2009 2008 75 15 -20 65 12 55 -30 45 9 -40 35 6 j f m am j j a s o n d j f m am j j a s o n d
Slide 9: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 3 month interim Questions Appendix 9
Slide 10: Exploration & Production
Exploration & Production Higher production and lower prices Operational Text box, Arial figures 16 bold Oil and d gas production d i iincreased dbby 34% 2009 3M 2008 3M 2008 FY Gas production almost doubled – primarily due to Norwegian gas field Ormen Lange Oil & gas production mboe 5.9 4.4 18.5
Slide 11: Generation
Generation Lower EBITDA from higher fuel costs Operational figures Power production increased by 19% 2009 3M 2008 3M 2008 FY Higher thermal production compared to wet Q1 2008 Power production GWh 5,824 4,878 18,536 Lower renewable production from less wind - Thermal Th l GWh 5,173 5 173 4,019
Slide 12: Energy Markets
Energy Markets Time lag and flexibility in gas contracts Operational figures Gas sales fell 8% primarily from a decline in demand 2009 3M 2008 3M 2008 FY from industry and wholesales customers Gas sales GWh 34,055 37,197 108,394 Power sales on level with first quarter 2008 Power sales G GWh 3,09
Slide 13: Sales & Distribution
Sales & Distribution Stable earnings Operational figures Gas sales G l declined d li d 3% due d tto lower l d demand d ffrom 2009 3M 2008 3M 2008 FY industrial customers Gas sales GWh 7,598 7,796 20,550 Power sales increased 4% due to colder weather in the Distribution of gas GWh 3 934 3,934 3 7
Slide 14: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 3 month interim Questions Appendix 14
Slide 15: Selected financial figures
Selected financial figures DKK million 2009 3M 2008 3M 2008 FY Revenue marginally higher due to higher production of Revenue 15,616 15,080 60,777 gas partly offset by lower oil and gas prices EBITDA 2,653 3,186 13,622 Lower EBITDA due to Depreciation 951 1,013 5,618 ` Negative time lag from the
Slide 16: Unchanged outlook for 2009 (1/2)
Unchanged outlook for 2009 (1/2) In the 2008 annual report p EBITDA and profit p after tax in 2009 were expected to be significantly lower compared to 2008 This continues to be our expectation as of today The outlook for f 2009 is based on a number off assumptions related to market prices, rel
Slide 17: Unchanged outlook for 2009 (2/2)
Unchanged outlook for 2009 (2/2) Power production expected to have a negative Flexibility in gas sourcing contracts expected impact to have a positive impact The recessionary environment has caused a drop in The recessionary environment has led to a decline in demand for power in our neighboring
Slide 18: Investments and capital structure
Investments and capital structure Anticipated future capital expenditure Long term capital structure target To mitigate the effects from a potentially prolonged Net interest bearing debt plus hybrid capital equal economic recession new investments are expected at a approximately 3x EBITDA after
Slide 19: Funding activities
Funding activities Funding activities in 2009 Severn Project Financing The Severn acquisition included a complete project Funds raised Currency Million financing of up to GBP 475m (term loan facility and EIB loan drawn EUR 250 multipurpose facility). Project Financing (Severn power plant) GBP 69
Slide 20: Debt and liquidity overview
Debt and liquidity overview Debt breakdown Liquidity q ypposition DKK million 2009 3M 2008 FY DKK billion 2009 3M 2008 FY Bonds issued 7,728 7,894 Liquidity 4.7 2.4 Bank loans 11,995 8,760 EUR 1.5bn committed facility due 2011 11.2 11.2 M t Mortgage loans l 1 258 1,258 1 258 1,258 Other 157 135 Tota
Slide 21: Market risks and hedging
Market risks and hedging Commodity risk Currency risk Oil and gas price risk – hedging up to 5 years ahead Most of the business activities involve direct or indirect ` All expected oil price exposure in 2009 hedged at an average exposure to exchange rate fluctuations oil p price of 70 USD/bbl - ha
Slide 22: Summary - 3 month interim
Summary - 3 month interim Sound results despite economic recession Unchanged outlook Further strengthening of the integrated business model Industrialising attractive renewable investments Flexible e bea andd diversified gas sourcing portfolio New cost reduction program initiated Significant proacti
Slide 23: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 3 month interim Questions Appendix 23
Slide 24: Q&A
Q&A FOR FURTHER INFORMATION PLEASE VISIT OUR WEBSITE dongenergy.com/EN/Investor/
Slide 25: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 3 month interim Questions Appendix 25
Slide 26: Outlook for 2009 (as stated in the Annual Report 2008)
OUTLOOK FOR 2009 (as stated in the Annual Report 2008) Commodity C dit Average market A k t prices i Units U it A Assumed d 2009 A Average 2008 prices Oil (Brent) USD/bbl 40 97 Gas (TTF) EUR/MWh 13 25 Power (Nord Pool) * EUR/MWh 48 57 Green dark spread p * EUR/MWh 16 0 USD exchange rate USD/ DKK 5.5