Orsted · OMXCOP:ORSTED
Orsted — DONG Energy — 9M 2009 Earnings Presentation
22 slides from Orsted's earnings presentation, 2009
Slide 1: FINANCIALS 2009 First 9 months
FINANCIALS 2009 First 9 months
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 Outlook Questions 3
Slide 4: Highlights – first 9 months of 2009
Highlights – first 9 months of 2009 KEY FINANCIALS EBITDA PER BUSINESS SEGMENT Low energy prices and timing differences affect After special hydrocarbon tax the results negatively Revenue down 14% to DKK 35.8bn 25% Exploration & Production EBITDA 39% Generation EBITDA down 36% to DKK 6.5bn1 DK
Slide 5: Transforming DONG Energy to a low carbon future
Transforming DONG Energy to a low carbon future DONG Energy's 15/85 to 85/15 strategy DONG Energy's production portfolio 15 / 85 50 / 50 85 / 15 New tech ? 638 g CO2/kWh1 Wind 320 g CO2/kWh ? Wind 100 g CO2/kWh Gas Gas 2020 2040 ? 2006 Wind Gas Bio/Multifuel Bio/Multifuel VISION Bio/Multifuel VISION
Slide 6: Larger construction projects in DONG Energy
Larger construction projects in DONG Energy Larger projects with completed commissioning in 2009 Project Type of project MW Capex/remaining capex* Start Horns Rev 2 91 offshore wind turbines in DK 209MW DKK 3.8bn /DKK 0.5bn Dec 2009 Karnice and Karcino 30 onshore wind turbines in POL 81MW DKK 0.9bn
Slide 7: Strengthening the capital structure – reducing investments
Strengthening the capital structure – reducing investments To prepare for a situation with a continued Net debt by end of 2009 expected in depressed international economy, DONG Energy the area of DKK 28-30bn has decided to downscale the investment program for the coming years The investment programm
Slide 8: Operational efficiency programmes
Operational efficiency programmes Key programmes completed in 2009 Realised an annual Merger synergies improvement of DKK 0.8bn by 2009 Ongoing key programmes EBITDA enhancement programme Initiated in 2008 to improve EBITDA in the coming years Being implemented until 2011 reaching an yearly aggr
Slide 9: 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 20 Gas (TTF) Median 2001-2008 80 -10 15 65 -20 50 10 -30 35 5 -40 Quarter 2008 2009 1. 2. 3. 4. Coal and
Slide 10: Agenda
Agenda DONG Energy highlights Operating segments Financials Outlook Questions 10
Slide 11: Selected Financial Figures
Selected Financial Figures DKK million 2009 9M 2008 9M 2008 FY Revenue and EBITDA reduced by low energy Revenue 35,791 41,612 60,777 prices and EBITDA 6,830 10,993 13,622 Declining power demand has reduced Profit after tax 1,081 5,177 4,815 EBITDA in Generation through lower peak Assets 121,830
Slide 12: Exploration & Production
Exploration & Production Gas production increased significantly Operational Text box, Arial figures 16 bold Oil and gas production increased by 33% 2009 9M 2008 9M 2008 FY Gas production nearly doubled – primarily due to gas field Ormen Lange, which will reach plateau level in 2010 Oil & gas pro
Slide 13: Generation
Generation Continued low power prices and lower demand Operational figures Continued low power production though up 2% towards a low 2008 2009 9M 2008 9M 2008 FY Power production GWh 12,731 12,441 18,536 Higher thermal production due to higher green dark spread, but capped by lower power demand
Slide 14: Energy Markets
Energy Markets Significant negative time lag effects Operational figures Gas sales fell 8% from lower demand from industry and 2009 6M 2008 6M 2008 FY wholesale customers and lower sales on gas hubs Gas sales GWh 72,121 78,766 108,394 Power sales up 2% Power sales GWh 7,770 7,588 10,482 In Sep
Slide 15: Sales & Distribution
Sales & Distribution Stable earnings Operational figures Gas sales on level with corresponding period in 2008 2009 9M 2008 9M 2008 FY Power sales down 5% Gas sales GWh 14,881 14,776 20,550 Fibre optic network sold on November 17, 2009. Distribution of gas GWh 6,858 7,197 10,346 Power sales GWh
Slide 16: Agenda
Agenda DONG Energy highlights Operating segments Financials Outlook Questions 16
Slide 17: Capital structure, Funding and Rating
Capital structure, Funding and Rating Long term capital structure target Funding strategy and Debt Programmes Maintain a minimum rating of BBB+ / Baa1 External funding primarily to be carried out Net interest bearing debt plus hybrid capital through parent company - to avoid structural equal t
Slide 18: Debt and liquidity overview
Debt and liquidity overview Debt breakdown Liquidity and funding activity DKK million 2009 9M 2008 FY DKK billion 2009 9M 2008 FY Bonds issued Cash equivalents and securities 9.0 3.8 15,130 7,894 Bank loans EUR 1.5bn RCF, due 2011 10.5 11.2 13,427 8,760 Mortgage loans 1,513 1,258 (EUR 100mn drawn) O
Slide 19: 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. In 2010 and 2011 a exposure to exchange rate fluctuations significant proportion of the exp
Slide 20: Agenda
Agenda DONG Energy highlights Operating segments Financials Outlook Questions 20
Slide 21: Outlook for 2009
Outlook for 2009 In the 2008 annual report EBITDA and profit after tax in 2009 were expected to be significantly lower compared to 2008 Some areas have developed positively and others negatively compared to the original expectations Continued low power demand affects power generation negatively
Slide 22: Q&A For further information please visit our website
Q&A FOR FURTHER INFORMATION PLEASE VISIT OUR WEBSITE dongenergy.com/EN/Investor/