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Danish DONG Energy's Operating Profit up 19 pct in H1

SOURCES:xinhuanet  DATE:2016-08-05 CLICKS:

  Danish energy giant DONG Energy saw a 19 percent rise in operating profit for the first half-year 2016 owing to strong growth in wind power, the company said Thursday.

  Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first six months of 2016 stood at 12.4 billion Danish kroner(1.86 billion U.S. dollars), up 19 percent from 10.4 billion kroner for the same period last year, the company said in the interim financial report.

  The underlying operating profit, which was adjusted for one-off items, increased by 34 percent and was driven by a 68 percent rise in wind power.

  Net profit for the period was 6.4 billion kroner, representing an increase of 3.6 billion kroner year-on-year.

  In June, DONG Energy made the decision to invest in the German offshore wind farm Borkum Riffgrund 2, and in July the company were awarded the right to build the Dutch offshore wind farms Borssele 1 and 2.

  DONG Energy said the decision for Britain to exit the European Union is in its view unlikely to result in any fundamental changes to the British offshore wind sector.

  It added the group's financial performance is in line with its expectations for 2016, and maintained its full-year guidance with EBITDA expected to amount to 20-23 billion kroner, of which wind power is expected to amount for 10-12 billion kroner.

  It also expects gross investments for 2016 to amount to 18-21 billion kroner.

  The share price of Dong Energy at the Copenhagen Stock Exchange fell 1.6 percent after the publication of its first financial statement as a listed company.

  Headquartered in Fredericia, Denmark, DONG Energy is a producer, trader and distributor of energy across northern Europe.

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