DONG to retain upstream unit in IPO push

摘要

Copenhagen-Denmark’s DONG said Tuesday it will retain its multibillion dollar oil and gas unit-whose future had been under a cloud-indicating, however, that it will spend less on those operations going forward as it switches investment focus to renewable energy. The company also revealed it was booking a massive, DKK16 billion ($2.3 billion]) write-down on the value of its upstream business after lower oil and gas prices hit its reserve estimates. “In DONG Energy’s 2015 annual accounts, DONG Energy will make a writedown of approximately DKK16 billion [$2.3 billion] in the carrying value of the E&P business,” the group said. It said the writedown was caused by the continued decline in oil and gas prices and reduced reserve estimates, but gave no details on the reduction in reserves.