2017-08-22
http://w3.windfair.net/wind-energy/pr/25216-dong-energy-gas-oil-green

DONG Energy enters an agreement to divest its upstream oil and gas business to INEOS

?DONG Energy has today agreed to divest the entire share capital of DONG E&P A/S to INEOS for an unconditional payment of USD 1,050 million (DKK 7.0 billion) on a cash and debt free basis, a contingent payment of USD 150 million (DKK 1.0 billion) related to the Fredericia stabilisation plant and a contingent payment of up to USD 100 million (DKK 0.7 billion) subject to the development of the Rosebank field.

Image: DONG EnergyImage: DONG Energy

INEOS will, by acquiring DONG E&P A/S, take over decommissioning liabilities of approximately DKK 7.0 billion. DONG Energy will retain all cash flows until 30 June 2017 (free cash flow was DKK 2.1 billion in Q1, 2017) and retain all hedge contracts related to the Oil & Gas business (market value was DKK 1.9 billion as at 31 March 2017).

Completed transformation into a renewables company

Henrik Poulsen, CEO of DONG Energy, said: “Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the Oil & Gas business. With the agreement with INEOS we’ve obtained just that.” Henrik Poulsen concluded: “The transaction completes the transformation of DONG Energy into a leading, pure play renewables company.”

The transaction is expected to result in a gain on sale of enterprises of DKK 2.5 billion which includes the contingent payment related to the Fredericia stabilisation facility. The gain will be presented as part of net profit from discontinued operations in DONG Energy's financial statements after closing.

Of the USD [1,050] million unconditional consideration, USD 250 million (DKK 1.7 billion) will be payable from 2018 to 2020.
Closing of the transaction is subject to regulatory approvals and certain other third party approval is expected to take place in the third quarter of 2017.

At closing of the transaction, approximately 440 employees of the DONG Energy group working for Oil & Gas will transfer to employment with the INEOS group.

Source:
DONG Energy
Author:
Press Office
Link:
www.dongenergy.com
Keywords:
DONG Energy, gas, oil, green





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