Orsted · OMXCOP:ORSTED
Orsted — DONG Energy — H1 2009 Earnings Presentation
25 slides from Orsted's earnings presentation, 2009
Slide 1: Financials 2009 – First half year
FINANCIALS 2009 First half year
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation are based on the beliefs of our management 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, financ
Slide 3: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 – first half year Questions 3
Slide 4: Highlights – first half year
Highlights – first half year KEY FINANCIALS EBITDA PER BUSINESS SEGMENT After special tax Sound financial result despite the current economic slowdown Exploration & Production 25% Revenue up with 3% to DKK 28,779mn EBITDA 40% Generation DKK EBITDA fell to DKK 4,766mn primarily due to 4,455 Ene
Slide 5: Recent developments during 2009
Recent developments during 2009 Supporting and developing the renewable portfolio April 2009 Commencing construction of UK off shore wind park Walney II May 2009 Commencing construction of UK off shore wind park London Array June 2009 Acquisition of A2SEA, a market leading supplier of installa
Slide 6: Transforming to a low carbon future
Transforming to a low carbon future 85/15 target TODAY´S TODAY'S PRODUCTION FUTURE PRODUCTION PRODUCTION IN 2040 PRODUCTION 85% 15% The transformation will significantly reduce DONG Energy's exposure towards CO2 prices. The transformation has already begun. The path towards a 2020 milestone is to a
Slide 7: Acquisition of A2SEA supports the industrialization of offshore wind farm construction
Acquisition of A2SEA supports the industrialization of offshore wind farm construction Recent acquisition of A2SEA underlines a strong A2SEA competences support upcoming offshore presence within the North European wind market wind projects A2SEA and its vessels provides DONG Energy with increased
Slide 8: Timing between CAPEX and EBITDA impact
Timing between CAPEX and EBITDA impact Selected larger projects in the coming years ….. Securing future growth in EBITDA Total Remaining Selected larger projects 1 2009 2010 2011 2012 2013 2014 CAPEX CAPEX 2 Horns Rev 2 DKK 3.8bn DKK 0.9bn CAPEX EBITDA commencing London Array DKK 8.7bn DKK 8.5bn CAP
Slide 9: Operational excellence
Operational excellence Improving performance Timing of projects underlines an ongoing focus DONG Energy continues to improve its operational on operational excellence performance by engaging into extensive and thorough cost reductions programmes as well as implementation of best in class workflows.
Slide 10: Market price development
Market price development Oil and gas (monthly average) Hydrological balance (weekly average) USD/bbl (oil) EUR/MWh (gas) 35 TWh 140 20 Range 2001-2008 125 30 10 2008 110 25 Oil (Brent) 0 2009 95 Gas (TTF) -10 Median 2001-2008 80 20 65 -20 15 50 -30 35 10 -40 2008 2009 Q1 Q2 Q3 Q4 Coal and CO2 Certif
Slide 11: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 – first half year Questions 11
Slide 12: Exploration & Production
Exploration & Production Higher production and lower prices Operational Text box, Arial figures 16 bold Oil and gas production increased by 37% 2009 6M 2008 6M 2008 FY Gas production doubled – primarily due to Norwegian gas field Ormen Lange Oil & gas production mboe 12.0 8.7 18.5 Gas producti
Slide 13: Generation
Generation Lower EBITDA from higher fuel costs Operational figures Power production increased by 4% though from a historical low level in 2008 2009 6M 2008 6M 2008 FY Power production GWh 9,248 8,914 18,536 Higher thermal production due to higher green dark spread, but capped by lower power dema
Slide 14: Energy Markets
Energy Markets Time lag and flexibility in gas contracts Operational figures Gas sales fell 12% primarily from a decline in demand 2009 6M 2008 6M 2008 FY from industry and wholesale customers and lower sales on gas hubs Gas sales GWh 48,762 55,360 108,394 Power sales up 2% compared to first hal
Slide 15: Sales & Distribution
Sales & Distribution Stable earnings Operational figures Gas sales up by 3% due to colder weather in the 2009 6M 2008 6M 2008 FY beginning of 2009 compared to 2008 Gas sales GWh 12,066 11,689 20,550 Power sales decreased 5% Distribution of gas GWh 5,635 5,702 10,346 Power sales GWh 4,339 4,576 9
Slide 16: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 – first half year Questions 16
Slide 17: Selected financial figures
Selected financial figures DKK million 2009 6M 2008 6M 2008 FY Revenue slightly higher due to higher production of gas Revenue 28,779 27,820 60,777 partly offset by lower oil and gas prices EBITDA 4,766 6,651 13,622 EBITDA down by 30% primarily as a result of the negative effects from timing dif
Slide 18: Unchanged outlook for 2009 (1/2)
Unchanged outlook for 2009 (1/2) In the 2008 annual report EBITDA and profit 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 2009 is based on a number of assumptions related to market prices, relations
Slide 19: 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 20: Investments and capital structure
Investments and capital structure Anticipated future capital expenditure Long term capital structure target CAPEX in 2010 and 2011 expected to be lower than Net interest bearing debt plus hybrid capital equal 2009 in order to mitigate the effects from a potentially approximately 3x EBITDA after
Slide 21: Debt and liquidity overview
Debt and liquidity overview Debt breakdown Liquidity and funding activity DKK million 2009 6M 2008 FY DKK billion 2009 6M 2008 FY Bonds issued 15,139 7,894 Cash & cash equivalents and securities 10.2 3.8 Bank loans 12,597 8,760 EUR 1.5bn committed facility due 2011 11.2 11.2 Mortgage loans 1,258 1,2
Slide 22: 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 oil price exposure in 2009 hedged as well as a exposure to exchange rate fluctuations significant proportion of the expected o
Slide 23: Summary – first half year
Summary – first half year Sound results despite economic recession Unchanged outlook for 2009 Recent acquisitions supports the integrated Industrializing business model renewable investments Flexible and diversified gas sourcing portfolio Operational excellence Significant proactive hedging Liquidit
Slide 24: Agenda
Agenda DONG Energy highlights Operating segments Financials 2009 – first half year Questions 24
Slide 25: Q&A
Q&A FOR FURTHER INFORMATION PLEASE VISIT OUR WEBSITE dongenergy.com/EN/Investor/