Energy firm Dong narrows its losses following Goldman deal

Suzie Neuwirth
DONG, the Danish state energy firm that has attracted controversy for the government’s plans to sell part of its stake to Goldman Sachs, yesterday said it narrowed its losses in 2013 due to higher earnings from offshore wind projects.

The company reported post-tax losses of 1bn krone (£110m) in 2013, compared to a loss of 4bn krone in 2012. Dong’s core earnings rose from 8.6bn krone in 2012 to 15bn krone in 2013, boosted by its wind projects, a larger stake in the Ormen Lange gas field in Norway and cost reductions.

Chief executive Henrik Poulson called the results “satisfactory” after a “challenging 2012”.

Denmark’s government was torn apart last week after one of its coalition member parties quit in protest at the sale of a 19 per cent stake in Dong to US investment bank Goldman Sachs, claiming that the sale threatens the country’s green credentials. Goldman Sachs said its deal supported the firm’s renewable energy goals.

Dong forecasts relatively flat earnings next year, in the range of 15bn krone to 17bn krone.