Denmark’s DONG Energy will divest its activities within the oil and gas business by the end of 2017.
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Image of a DONG turbine, from DONG Energy. |
The company has already "initiated a process with the ultimate aim of divesting its activities within exploration and production of oil and gas."
“The activities are expected to be sold before the end of 2017, and the oil and gas segment is therefore presented as discontinuing operations in the financial statements for full-year 2016,” DONG said in a statement. “This means that the profit for the year and cash flows of the oil and gas segment are presented separately from the group's continuing operations, and that the balance sheet items are presented as assets classified as held for sale.”
According to the company, its consolidated revenue, EBITDA, profit before tax and profit after tax reported in the annual report for 2016 will thus only comprise the continuing operations. The profit after tax of the discontinuing operations will be presented on a single line after the profit after tax from our continuing operations. The same applies to the cash flow statement.
The move to exit the oil and gas business was first announced in November 2016, as part of DONG’s strategic transformation towards becoming a global leader in renewables. DONG currently has seven large offshore wind farms under construction.
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