Dong Energy’s share price jumped after it edged up its profit guidance
Dong Energy's share price jumped more than four per cent after it said it would increase its group operating profit guidance to 24 to 25bn Danish krone (£2.7 to £2.8bn) from its previous outlook of between 20 and 23bn for 2016.
The Danish utility and wind farm developer's share price is now up 3.54 per cent to 257.50.
The group's wind power arm is now expected to report earnings before interest, tax, depreciation and amortisation toward the high end of the 10 to 12bn krone range, while gross investments are expected toward the lower end of guided range of 18 to 21bn krone.
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The increase was triggered after its divestment of 50 per cent of offshore wind farm Race Bank.
A strong operational performance and cost reductions in its oil and gas arm, combined with better than expected results from both renegotiations of gas contracts and from operations in distribution and customer solutions, also drove the increase, Dong said.
Henrik Poulsen, Dong Energy’s chief executive, said:
We have had a really good year in Dong Energy and made significant strategic and operational progress in all business units. We have continued the green transformation and seen significant growth in our operating profit. All business units have delivered better than expected or to the high end of our expectations.
The Danish company floated on the stock market earlier this year and announced it would exit its oil and gas business to focus solely on offshore wind power in November.