Ørsted (company)

Ørsted A/S
Aktieselskab
Traded as Nasdaq Copenhagen: ORSTED
Industry Electricity generation
Predecessor Dansk Naturgas A/S
Elsam
Energi E2
NESA
Københavns Energi
Frederiksberg Forsyning
Founded 2006 (2006)
Headquarters Fredericia, Denmark
Key people
 Henrik Poulsen (CEO)[1]
Thomas Thune Andersen (Chairman)
Products Electricity
Revenue Decrease 59.5 billion DKK (2017)[2]
Increase 16.2 billion DKK (2017)[2]
Increase 20.2 billion DKK (2017)[2]
Number of employees
 Decrease 5,638 (2017 end)[2]
Website orsted.com

Ørsted A/S (formerly DONG Energy) is a power company based in Fredericia, Denmark. It is the largest energy company in Denmark. The company adopted its current name on 6 November 2017.

History

The Danish state-owned company Dansk Naturgas A/S was founded in 1972 to manage gas and oil resources in the Danish sector of the North Sea. After some years, the company was renamed to Dansk Olie og Naturgas A/S (DONG), meaning Danish Oil and Natural Gas. At the beginning of the decade of the 2000s, DONG started to expand itself into the electricity market by taking long positions in electricity companies. In 2005, DONG acquired and merged Danish electrical power producers Elsam and Energi E2 and public utility (electricity distribution) companies NESA, Københavns Energi and Frederiksberg Forsyning. The result of the merger was the creation of DONG Energy. The merger was approved by the European Commission on 14 March 2006.

In 2002, one of predecessors of DONG Energy named Elsam installed the 160 MW Horns Rev offshore wind farm, which was the first large scale offshore wind farm in the world.[3][4][5]

In 2005, DONG Energy acquired 10.34% in the Ormen Lange gas field (operated by Shell). The share of gas reserves allocated to DONG Energy are approximately 40 billion cubic metres (1.4 trillion cubic feet).

In 2009, DONG sold its fiber broadband in northern Zealand to TDC A/S.[6]

In 2007, DONG Energy entered into the Dutch market.[7] In 2010, it started a cooperation with Dutch De Nederlandse Energie Maatschappij.[8] However, in 2014 DONG Energy withdrew its consumer activities from the Dutch market.[9][10] In 2010, DONG divested Norwegian power companies Salten and Nordkraft.[11] In September 2013, DONG sold a power cable accessing the London Array wind farm to its partners, E.ON and Masdar for around $728 million.[12]

In 2013 DONG Energy finished the construction of the 400 MW Anholt Offshore Wind Farm off the Danish island of Anholt in the Kattegat at a cost of 10 billion Danish kroner (€1.35 bn). DONG Energy was the only bidder in the process.[13][14][15] As of 2012, DONG Energy had a wind turbine capacity of 794 MW and planned to add another 594 MW in 2013.[16] In 2014 DONG divested its last onshore wind turbines, focusing on offshore wind power.[17] of which DONG had 3,000 MW in 2015;[18]

As part of a restructuring plan, in January 2014 DONG sold an 18% stake to New Energy Investment S.a.r.l., a subsidiary of Goldman Sachs, while Danish pension funds, ATP and PFA Pension acquired 4.9% and 1.8% accordingly. The deal was heavily criticised and caused a split of the ruling coalition of Helle Thorning-Schmidt.[19] Six cabinet ministers and the Socialist People's Party withdrew from the government.[20] On 9 June 2016, some of these shares were sold in an IPO at Copenhagen Stock Exchange.[21]

In 2015, DONG had a deficit of 12 billion DKK, the largest of any Danish company ever.[22] In 2016, DONG was voted number 11 on the Clean200 list.[23][24]

Dong was listed at the Copenhagen Stock Exchange in June 2016. At the same time, it divested its ownership shares of five Norwegian oil and gas fields to Faroe Petroleum.

In 2017, DONG completed decommissioning the world's first offshore wind farm, Vindeby Offshore Wind Farm.[25] Also in 2017, the company decided to phase-out the use of coal for power generation, and it sold off its oil and gas business to Ineos for US$1.05 billion.[26][27] After selling its oil and gas business the company announced its intention to change its name to Ørsted after the Danish scientist Hans Christian Ørsted.[28]

Operations

Ørsted considers Denmark, Sweden, United Kingdom, Germany and the Netherlands as core markets of corporation.

Oil and gas exploration and production

Before divestment of its oil and gas upstream assets to INEOS in 2017, Ørsted's core areas of oil and gas exploration and production laid in southern part of the Norwegian North Sea and the Danish part of the North Sea, Barents Sea, west of Shetland, and in the mid Norway (gas production). The reserve base was expected to be 570 million barrels (91,000,000 m3) of oil equivalent.[26] In 2016, it produced 100,000 barrels per day (16,000 m3/d) of oil equivalent.[26]

Ørsted has agreed to sell its oil and gas pipelines to Energinet.dk.[29][30] It owns oil and gas pipelines which extend from the Danish part of the North Sea to Nybro and the Swedish gas transmission network (Nova Naturgas). Ørsted co-owned the Tyra West – F3 pipeline pipelines, which create a link from the North Sea Danish section to the Netherlands natural gas hub in Den Helder, the DEUDAN pipeline from Jutland to north of Hamburg in Germany, and the Langeled pipeline from Nyhamna terminal in Norway to Easington in the UK. Ørsted also owned a share of the Norwegian gas pipeline system.

Power production

Ørsted is the largest power producer in Denmark with market shares of 49% for electricity production and 35% for heat production. It also owns power production facilities and projects in Germany, Sweden, the Netherlands, Norway and the United Kingdom.

Ørsted is the largest offshore wind farm company in the world[31] with a market share of 16%.[32] Ørsted surpassed 1,000 offshore wind turbines in 2016.[33] In Denmark, it operates the 209 MW Horns Rev 2 offshore wind farm.[34][35] In the United Kingdom Ørsted operates Barrow and Burbo Bank offshore windfarms and will construct Walney Island and Gunfleet Sands I and II[36] wind farms.[37] In addition, it is building the world largest wind farms, the 1,200 MW Hornsea 1 and the 1,386 MW Hornsea 2.[38][39][40] In North America it is a partner for the Bay State Wind offshore wind farm in the United States and the Haida Energy Field offshore wind farm in Canada.[41] In the Netherlands, it develops Borssele 1 and 2 wind farms.

Ørsted is the largest shareholder (51%) of offshore wind turbine installer A2SEA,[42] while Siemens owns the other 49%.[43] Ørsted also has 30% of subsea cabling installer CT Offshore.[44]

Shareholders

Ørsted is listed at the Copenhagen Stock Exchange. Danish Government holds the majority of Ørsted shares (50.1%). Capital Group Companies, EuroPacific Growth Fund's, and SEAS-NVE holds over 5% of shares.[45] According to a political agreement, the Danish Government shall maintain a majority in the company until 2025. Reduction of the ownership below 50% requires political agreement of Danish parties.

Sponsorship

Ørsted is the main sponsor of the Danish men's national ice hockey team.

See also

References

  1. ↑ Wichmann, Sonny (18 April 2012). "Henrik Poulsen bliver ny topchef i DONG" [Henrik Poulsen will be the new CEO of DONG]. Berlingske (in Danish). Archived from the original on 21 April 2012. Retrieved 18 April 2012.
  2. 1 2 3 4 "Annual Report 2017 Summary". Ørsted. Retrieved 12 October 2018.
  3. ↑ Horns Rev I Offshore Wind Farm, Denmark Archived 29 January 2012 at the Wayback Machine. Power Technology. Retrieved: 27 October 2010.
  4. ↑ Horns Rev 1 (Denmark) offshore wind farm Archived 9 October 2011 at the Wayback Machine. 4C . Retrieved: 30 July 2010.
  5. ↑ Horns Revolution Archived 14 July 2011 at the Wayback Machine., Modern Power Systems, 5 October 2002, accessed 14 April 2010.
  6. ↑ "TDC køber DONGs fibernet" [TDC buys DONG's fiber network]. Berlingske (in Danish). 17 November 2009. Archived from the original on 5 October 2017. Retrieved 4 October 2017.
  7. ↑ "'Nederland is voor ons geen speeltuintje'" ['Netherlands is not a playground for us']. NRC (in Dutch). 23 June 2007. Archived from the original on 1 March 2016. Retrieved 8 April 2017.
  8. ↑ "DONG Energy strengthens its position in the Netherlands" (Press release). DONG Energy. 14 October 2010. Archived from the original on 9 April 2017. Retrieved 8 April 2017.
  9. ↑ "Eneco neemt klanten en medewerkers over van DONG Energy Sales B.V." [Eneco acquires customers and employees from DONG Energy Sales B.V.] (Press release) (in Dutch). Eneco. 21 January 2014. Archived from the original on 27 October 2016. Retrieved 8 April 2017.
  10. ↑ Ussing, Jakob; Pedersen, Signe Ferslev (21 January 2014). "Dong Energy siger farvel til skidt investering" [Dong Energy says goodbye to bad investment]. Berlingske (in Danish). Archived from the original on 16 January 2017. Retrieved 8 April 2017.
  11. ↑ Divestment of stakes in Nordkraft and Salten Kraftsamband has been approved Archived 22 February 2014 at the Wayback Machine. DONG Energy, 12 October 2010. Retrieved: 16 November 2010.
  12. ↑ Schaps, Karolin (10 September 2013). "DONG sells link to world's largest wind farm for $728 million". Reuters. Archived from the original on 24 September 2015. Retrieved 8 April 2017.
  13. ↑ Bjartnes, Anders (22 June 2010). "Dong gets green light for 400MW Anholt despite high prices". Recharge. Archived from the original on 28 June 2010. Retrieved 23 June 2010.
  14. ↑ Hanne, Windemuller. Anholt Offshore Wind Farm will be the largest in Denmark Archived 30 September 2011 at the Wayback Machine. Danish Energy Agency, 2 July 2010. Accessed: 27 November 2010.
  15. ↑ "Anholt Offshore Wind Farm". dongenergy.com. Archived from the original on 23 January 2012. Retrieved 25 April 2018.
  16. ↑ Wittrup, Sanne (1 November 2012). "Dong Energy øger vindkraften med 75 procent i 2013". Ingeniøren. Archived from the original on 4 November 2012. Retrieved 1 November 2012.
  17. ↑ Fribo, Adam. "Dong sælger de sidste landmøller Archived 27 December 2014 at the Wayback Machine." Ingeniøren, 23 December 2014. Accessed: 24 December 2014.
  18. ↑ Dong runder 3000 MW havmøllekapacitet Archived 22 May 2015 at the Wayback Machine.
  19. ↑ Levring, Peter; Wienberg, Christian (30 January 2014). "Goldman Deal on Danish Energy Splits Copenhagen Coalition". Bloomberg. Archived from the original on 31 January 2014. Retrieved 31 January 2014.
  20. ↑ Levring, Peter; Wienberg, Christian (6 February 2014). "In Denmark, Goldman Sachs Deal Ignites Political Crisis". Bloomberg Businessweek. Archived from the original on 7 February 2014. Retrieved 12 February 2014.
  21. ↑ Nasdaq Copenhagen Welcomes DONG Energy To List On Its Main Market Archived 10 June 2016 at the Wayback Machine., GlobeNewswire.
  22. ↑ Nielsen, Michael Korsgaard (4 February 2016). "DONG leverer det største underskud i danmarkshistorien" [DONG falls the largest deficit in the history of Denmark]. Berlingske (in Danish). Archived from the original on 23 December 2016. Retrieved 1 October 2016.
  23. ↑ "Toyota, Tesla and Vestas ranked among world's top green companies". The Guardian. UK. 15 August 2016. Archived from the original on 5 September 2016. Retrieved 5 September 2016.
  24. ↑ "Archived copy" (PDF). Archived (PDF) from the original on 16 January 2017. Retrieved 10 September 2016.
  25. ↑ "Dong completes Vindeby removal". 6 September 2017. Archived from the original on 6 September 2017. Retrieved 16 March 2017.
  26. 1 2 3 Hill, Joshua S. (29 September 2017). "DONG Energy Receives Regulatory Approval To Divest Oil & Gas Business To INEOS". Clean technica. Retrieved 1 October 2017.
  27. ↑ "DONG Energy completes the divestment of its upstream oil and gas business to INEOS" (Press release). DONG Energy. 29 September 2017. Archived from the original on 1 October 2017. Retrieved 1 October 2017.
  28. ↑ Spector, Julian (2 October 2017). "So Long, DONG: Danish Energy Giant Changes Name While Dropping Fossil Fuels". Greentech Media. Archived from the original on 5 October 2017. Retrieved 4 October 2017.
  29. ↑ "Danish State to take over oil and gas pipelines" (Press release). DONG Energy. Archived from the original on 1 October 2017. Retrieved 1 October 2017.
  30. ↑ "DONG's offshore gas pipelines to be sold to Danish TSO". ICIS. 21 September 2015. Archived from the original on 1 October 2017. Retrieved 1 October 2017.
  31. ↑ Clark, Pilita (17 March 2017). "Denmark's Dong Energy shifts from fossil fuels to renewables". Financial Times. Archived from the original on 9 April 2017. Retrieved 8 April 2017.
  32. ↑ "Offshore wind: Europe far ahead, Siemens largest by far". 19 August 2016. Archived from the original on 9 October 2016. Retrieved 6 October 2016.
  33. ↑ "DONG Energy Surpasses 1,000 Wind Turbines Installed At Sea". CleanTechnica. 25 October 2016. Retrieved 24 November 2016.
  34. ↑ Horns Rev 2 (Denmark) offshore wind farm Archived 10 December 2011 at the Wayback Machine. 4C . Retrieved: 30 July 2010.
  35. ↑ Horns Rev 2 Archived 24 March 2012 at the Wayback Machine. LORC . Accessed: 10 December 2011.
  36. ↑ Gunfleet Sands offshore wind farm (United Kingdom) Archived 9 October 2011 at the Wayback Machine. 4C . Retrieved: 27 October 2010.
  37. ↑ "DONG Energy Invests in UK Offshore Wind Farms". Oil Voice. 3 December 2007. Archived from the original on 13 April 2009. Retrieved 16 December 2007.
  38. ↑ "Dong commits to Hornsea build". renews.biz. 3 February 2016. Archived from the original on 4 February 2016.
  39. ↑ "World's largest offshore wind farm to be built in the UK" (Press release). Department of Energy and Climate Change. 3 February 2016. Archived from the original on 3 February 2016.
  40. ↑ Hill, Joshua S. (12 September 2017). "DONG Energy To Build World's Largest Offshore Wind Farm At 1,386 MW". Clean technica. Retrieved 1 October 2017.
  41. ↑ Hill, Joshua S. (14 September 2017). "DONG Energy Partners With NaiKun Wind Energy Group To Develop 2 Gigawatt British Columbia Offshore Wind Site". Clean technica. Retrieved 1 October 2017.
  42. ↑ "Siemens catches wind with A2Sea move". Upstream Online. NHST Media Group. 29 June 2010. Archived from the original on 29 September 2012. Retrieved 16 November 2010.
  43. ↑ Antitrust authority approves Siemens as equity partner in A2SEA Archived 10 March 2012 at the Wayback Machine. DONG Energy, 13 October 2010. Retrieved: 16 November 2010.
  44. ↑ DONG becomes co-owner of CT Archived 8 March 2012 at the Wayback Machine. (in Danish) Maritime Denmark, 12 November 2010. Retrieved: 16 November 2010.
  45. ↑ "Ørsted.com - Love your home". www.dongenergy.com. Archived from the original on 7 October 2017. Retrieved 25 April 2018.
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