DONG Energy has decided to keep its Exploration & Production (E&P) business to help fund investments in renewable energy.
“DONG Energy confirms its intention to build a world-class clean energy company with a portfolio based on leading competences in offshore wind, bioenergy and green distribution and customer solutions,” the company said.
After carrying out a strategic review of the E&P business as part of its IPO roadmap announced in September 2015, the company said its E&P needs to adapt to the significant decline in oil and gas prices. “Actions are being undertaken to de-risk the E&P portfolio and focus on cash generation within the new market reality,” DONG Energy said.
“With this revision of DONG Energy’s portfolio strategy, investments to support future growth will be focused on renewable energy.”
In its 2015 annual accounts, DONG Energy will make a write-down of approximately DKK 16 billion (approx. EUR 2 billion) in the carrying value of the E&P business.