Dong upgrades guidance for the full year

Divesting half of the Race Bank offshore wind farm and strengthened performance in the Oil & Gas division have prompted the Danish energy company to upgrade its forecast for the full-year 2016.

Dong Energy is increasing its guidance for 2016. The group now projects operating income of DKK 24-25 billion (EUR 3-3.4 billion). For the offshore Wind Power division specifically, the target for earnings is now expected to be in the high end of the announced DKK 10-12 billion. On the other hand, Dong expects that gross investing will be in the low end of the previously stated DKK 18-21 billion, Dong informs in a press release.

A divestment triggered the upgrade, as half of the 573 MW British offshore wind farm, Race Bank, has been sold to companies under the umbrella of investment fund Macquarie. Proceeds from the transaction, which besides the sale includes funding for 50 percent of the project's capital expenditures such as transmission assets, amount to a total of about GBP 1.6 billion (EUR 1.9 billion), which will be paid from this year and until Race Bank's completion in 2018.

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