Danish offshore wind farm operator Dong Energy on Tuesday reported a rise in quarterly profit as it confirmed plans to sell its oil and gas operations. Net profit jumped 10 percent from the same period a year ago to 3.084 billion kroner (414 million euros, $458 million), helped by the sale of its gas distribution grid and a lump sum for the renegotiation of gas purchase contracts.
Revenue fell 16 percent to 14.48 billion kroner after adjusting for fluctuations in the market value of contracts, including hedging transactions relating to other periods. The company also said it was proceeding with plans to sell its oil and gas operations, after saying last month that it had hired the American banking company J.P. Morgan to conduct a preliminary market assessment for the sale.
"We have decided to initiate a process with the aim of ultimately exiting from our oil and gas business," chief executive Henrik Poulsen said in a statement. "There can be no assurance as to the outcome or the timing of the completion of the process," he added. Sydbank analyst Morten Imsgard told Danish news agency Ritzau that revenue from wind power was "significantly lower" than anticipated due to "the wind turbines not spinning quite as much as expected."