Orsted · OMXCOP:ORSTED
Orsted — DONG Energy — Q1 2015 Earnings Presentation
19 slides from Orsted's earnings presentation, Apr 28, 2015
Slide 1: Financial Report Q1 2015 Investor Presentation
FINANCIAL REPORT Q1 2015 I N V E S T O R P R E S E N TAT I O N 28 April 2015 Q1 2015 RESULTS 1
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation are based on the beliefs of our We urge you to read our annual report available on our website at management as well as assumptions made by and information currently www.dongenergy.com for a discussion of some of the factors that could available to
Slide 3: Solid start to the year
Solid start to the year Highlights Q1 15 Group EBITDA Solid results despite low oil and gas prices (DKKbn) EBITDA of DKK 6.0bn (down 5% y/y) 16.4 15.0 Comparison y/y impacted by partial sale of London 13.7 Array in Q1 14 (DKK 1.4bn impact) 8.6 -5% Positive impact in Q1 15 from settlement of
Slide 4: US offshore wind project rights
US offshore wind project rights Securing project rights in Massachusetts The Massachusetts lease (+1GW) Agreement to take over RES Americas +1GW newly assigned projects rights off the coast of Massachusetts (MA) First project entry outside the European market forming part of the pipeline post 20
Slide 5: Market conditions and prices
Market conditions and prices OIL AND GAS PRICE UK POWER PRICE USD/bbl EUR/MWh EUR/MWh Oil price Gas TTF (rhs) 140 35 80 Forward Forward 120 prices price 30 70 100 25 60 80 60 20 50 40 15 40 2012 2013 2014 2015 2012 2013 2014 2015 Source: Platts, Argus Source: LEBA WIND ENERGY CONTENT GREEN DARK SPRE
Slide 6: Financial highlights Q1 2015
Financial highlights Q1 2015 EBITDA – DKK 6.0bn (down 5% y/y) Selected financials (DKKm) Q1 14 Q1 15 FY2014 Revenue 20,192 19,267 67,048 Strong operational performance in WP and E&P EBITDA 6,334 6,001 16,389 Cost reductions in E&P Net finance costs -722 -849 -1,710 Contribution from West of Du
Slide 7: Exploration & Production
Exploration & Production Operational highlights Q1 15 Oil & Gas production (mboe) Oil Gas 41.8 Production down 3% 31.7 10.6 Shorter shutdowns from maintenance and minor 26.4 28.5 8.2 -3% repair works at Norwegian fields 9.3 10.0 Ordinary production from Siri and production 23.5 31.2 10.2 9.9 1
Slide 8: Wind Power
Wind Power Operational highlights Q1 15 Renewable production (TWh) 5.3 5.0 Production down 10% 4.4 4.6 Lost production from partial London Array sale -10% 2.8 2.9 4.3 Outage on Anholt due to cable failure (fully 4.9 1.8 1.6 0.8 compensated by TSO) 0.8 0.8 0.9 0.6 1.7 0.5 0.1 0.1 Full product
Slide 9: Thermal Power
Thermal Power Operational highlights Q1 15 Thermal heat and power production (PJ, TWh) Heat generation up 7% y/y primarily due to 60 20 historically warm weather in Q1 14 15 40 Power generation up 9% y/y from primarily higher 10 generation at Enecogen due to somewhat improved 20 5 market conditi
Slide 10: Customers & Markets
Customers & Markets Operational highlights Q1 15 Operational figures Q1 14 Q1 15 Declining gas sales due to lower sales on UK Gas sales TWh 36.6 32.0 exchanges Power sales TWh 9.2 7.9 Declining power sales due to lower sales of green Distribution of gas TWh 2.9 3.1 certificates Distribution of p
Slide 11: Debt overview
Debt overview Net debt development Q1 15 Gross debt and hybrids Q1 15 0.6 6.9 7% 14% Bonds 0.1 Hybrids 4.0 4.7 55% Bank loans 2.3 25% Other debt incl. repo Net debt Operating Capex Divestments Other 1 Net debt cash flow EoY 2014 end of Key ratios loan portfolio2 Q4 14 Q1 15 Q1 15 Note (1): Other inc
Slide 12: Calling 3005 hybrid and intention to refinance
Calling 3005 hybrid and intention to refinance Decision to call the 3005 hybrid (EUR 600m, 5.5%, issued in 2005) at first Par Call date on 29 June 2015 Intention to refinance the 3005 hybrid during Q2 2015 with a new hybrid of similar size Q1 2015 RESULTS 12
Slide 13: Unchanged outlook
Unchanged outlook EBITDA DKK 15.5-17.5bn in 2015 Comments to guidance : - Hedging securing after tax result, not EBITDA - EBITDA for Q2 15 expected to be below corresponding quarter in 2014 where gain on sale in Wind Power was recognised Net investments DKK 35-40bn for 2015-2016 FFO/Adjusted net d
Slide 14: Q&A
Q&A (to ask a question on the conference call, press 01 on the telephone key pad) Q1 2015 RESULTS 14
Slide 15: Appendix
APPENDIX Q1 2015 RESULTS 15
Slide 16: Market prices
Market prices Forwards as of 23 Apr. Actual, Actual, 2015 (rest of Q1 15 Q1 14 (average) year) Oil, Brent USD/bbl 66 54 108 Gas, TTF EUR/MWh 21 21 24 Gas, NBP EUR/MWh 21 22 25 Electricity, Nord Pool system EUR/MWh 25 28 30 Electricity, Nord Pool, DK1 EUR/MWh 29 28 29 Electricity, EEX EUR/MWh 32 32 3
Slide 17: Investments
Investments Investments in Q1 15 Gross investments on Business Units in Q1 15 Cash flow from investing activities - 5,806 4% 4% E&P Purchase and sale of securities (reversal) 1,163 28% Wind Power Sale of assets and companies (reversal) - 72 Thermal Power Other 47 DKK Customers & Markets Gross invest
Slide 18: FFO/Adjusted net debt calculation
FFO/Adjusted net debt calculation LTM Q1 14 LTM Q1 15 EBITDA (Business Performance) 16.7 16.1 Reversal of recognised lease payment 0.4 0.6 Adjusted net interest expenses -2.9 -2.4 Net interest expenses -1.7 -1.1 Capitalised interest -0.3 -0.4 Interest element of decommission obligations -0.4 -0.4 50
Slide 19: Financial targets by Business Units
Financial targets by Business Units ROCE LTM Q1 15 Target 2016 Target 2020 -7.9% (4.1% Group >10% >12% excl. writedowns) E&P -30.5% (10.7%) ~12% on average for 2015-2020 WP 5.3% (5.3%) 6-8% 12-14% C&M -8.9% (-3.2%) >8% >10% TP Negative FCF1 Target 2018: Positive FCF1 Note (1): Free Cash Flow (FCF) d