Dong set to cut 400 jobs

DENMARK: Dong Energy is to slash up to 400 jobs as it looks to "streamline and improve the efficiency" of the company during a time of "extensive and challenging transformation" within the energy sector.

by Patrick Smith 20 August 2013

The Anholt project has given Dong a boost
The announcement comes as the firm revealed its pre-tax profit for the first half fell to DKK 400 million (EUR 53.6 million), compared with DKK 700 million (EUR 94 million) a year before.

This was despite an increase in operating cash inflow to DKK 4.6 billion (EUR 620 million) from DKK 2.9 billion (EUR 390 million) in the first half of 2012, primarily reflecting a decrease in funds tied up in working capital and higher earnings before interest, taxes, depreciation and amortization (EBITDA).

First-half 2013 EBITDA was given a boost by flagship offshore projects Anholt in Denmark and London Array in the UK as well as cost reductions. It came in at DKK 7.8 billion (EUR 1.1 billion) against DKK 6.6 billion (EUR 880 million) in the first half of 2012, primarily reflecting higher earnings from wind activities and lower costs.

The 350-400 jobs cuts are part of a streamlining initiative announced in February and are described by CEO Henrik Poulsen as "difficult, but unfortunately also necessary, [in the] process to improve Dong Energy's competitiveness".