Dong Energy sells Severn gas-fired power station in Britain

Source:Dong Energy

DONG Energy has signed and closed an agreement with a consortium of investors led by Macquarie Group’s Infrastructure and Real Assets business under which the consortium will acquire DONG Energy's Severn combined-cycle gas-fired power station.

Situated at Uskmouth near Newport in South Wales, the Severn power station has a capacity of 832 MW and is able to generate power for approximately 1.5 million British households. As one of the most efficient natural gas-fired power stations of its type in the UK, Severn commenced commercial operation in November 2010.

The aggregated sales price for the Severn power station is GBP 350 million cash (equivalent to approximately DKK 3.1 billion). In addition the agreement includes an earn-out based on future gross margin of the power station. The divestment is expected to result in a booked loss before tax of DKK 400-500 million. The loss will not have any impact on EBITDA.

Thomas Dalsgaard, Executive Vice President in DONG Energy, said: "We have succeeded in divesting the Severn power station at a satisfactory
price in a difficult market. The divestment is an important element of the Group's strategy to divest non-core assets and thereby strengthen the capital base for the benefit of the future development of the company."

The information provided in this announcement does not change DONG Energy's previous financial guidance for the 2013 financial year or the announced expected investment level for 2013-2014.

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