Dong Energy has completed development of a ‘roadmap’ it intends to use as it progresses towards an initial public offering (IPO), which it plans to pursue within the next 18 months, subject to market conditions. Ahead of the IPO, Dong Energy will continue to strengthen its position as a world-class clean energy company with a diversified renewables portfolio based on leading competences in offshore wind and biomass, as well as distribution and sales anchored in its Danish home market. Dong Energy’s E&P business operates in a structurally different market environment, which is currently characterised by the significant drop in oil prices over the past 12 months. A business programme has been initiated to adapt the E&P business to the new market reality and a strategic review of the E&P business will be undertaken to decide how to best position the business going forward.
Among the key priorities for the company are continuing to drive profitable growth and reduce the cost of electricity for offshore wind, in order to reinforce the company’s leadership position and provide a scalable and effective tool to combat global climate change. In a joint understanding with the Danish state, Dong Energy will seek, on market terms, to divest its gas distribution and oil and gas pipelines to Energinet.dk at an appropriate point in time. The Danish state has confirmed it will maintain a controlling shareholding in Dong Energy after the IPO.