Annual Report 2006
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DoNG ENErGy A/s DoNG ENErGy A/s DONG eNerGY Annual report 2006 Kraftværksvej 53 editorial offi ce: DONG energy, Group finance skærbæk 12 16 20 24 Design, production and printing: Datagraf 7000 Fredericia Photos: Jasper Carlberg and Thomas Priskorn generATIon expLorATIon & dISTrIBuTIon mArKeTS produCTIon This report was printed by an ISO 14001 eco-certifi ed and Denmark eMAS-registered printing fi rm, using chlorine-free paper / ANNUAL rePOrT 2006 and vegatable inks. tel. +45 9955 1111 Generation produces energy exploration & Production creates Distribution takes care of DONG Markets sells DONG energy’s from effi cient power stations and value through oil and gas energy’s electricity and gas electricity, natural gas and Fax +45 7556 4477 renewable energy sources. production and procurement of distribution and storage of related products to more than editorial work was completed on 12 March 2007. Generation is a market leader gas at competitive prices. natural gas in Denmark. one million customers in within design, construction and The exploration and production The electricity distribution takes Denmark, Sweden, Germany and ISbN: 87-91906-04-0 [email protected] operation of offshore wind farms activities are carried out in place in the metropolitan area the Netherlands. The customers Annual report 2006 08.11.29.01 www.dongenergy.com and clean coal technology. Danish, Norwegian, UK and and in North Zealand while the include residential customers, faroese waters. gas distribution covers southern industrial customers, public Jutland and South and West sector customers and wholesale Zealand. customers. ConTenTS the fi nancial statements of the parent company, DoNG Energy A/s, that appear from the enclosed cD-roM, form an integral part of the overall DONG energy in brief Cover financial review 42 annual report. Parts of the parent company’s fi nancial statements Preface 2 Management statement and Auditors’ report 47 appear in the printed part of the annual report only, as these parts are Management’s review Consolidated income statement 49 identical to the corresponding parts in the consolidated fi nancial N statements. the parts in question are: statement by the Executive Consolidated fi nancial highlights 6 Consolidated balance sheet 50 and supervisory boards, independent auditors’ report, management’s N Major highlights and outlook for 2007 7 Consolidated statement of changes in equity 52 review, and the parts of the accounting policies that are identical N Generation 12 Consolidated cash fl ow statement 54 for the Group and the parent company. N exploration & Production 16 Notes 55 N Distribution 20 Company information Cover N Markets 24 financial statements of the parent company Cover N employees 28 (CD-rOM enclosed*) N Safety and environment 30 N risk management 32 * The fi nancial statements of the parent company, DONG energy A/S, that appear ANNuAl rEPort 2006 N Corporate governance 38 from the enclosed CD-rOM, form an integral part of the overall annual report. Omslag årsrapport_UK.indd 1 30/03/07 11:19:17 CompAny InformATIon AT 31 deCemBer 2006 DoNG ENErGy A/s shArEholDErs AuDitors Kraftværksvej 53 boE service A/s 1.16% KPMG c.Jespersen dong energy skærbæk Energi horsens Net holding A/s 4.30% statsautoriseret revisionsinteressentskab 7000 Fredericia Ess Net A/s 6.95% Denmark Galten Elværk Net A/s 0.91% Deloitte IN brIef tel. +45 9955 1111 GEv Net A/s 0.10% statsautoriseret revisionsaktieselskab Fax +45 7556 4477 Nyborg Elnet A/s 0.61% [email protected] Østjysk Energi Net A/s 2.11% www.dongenergy.com sEAs-NvE holding A/s 10.88% reg. No. 36 21 37 28 the Danish state through the Ministry of Finance 72.98% revenue eBITdA eBIT profIT AfTer TAx Number of employees Assets at year end EBITDA by segment at year end DKKbn Generation 6,000 120 31% 40% 105 Exploration & Production DKK DKK DKK DKK 5,000 4,585 100 Distribution bn bn bn bn Markets 35.7 8.8 5.5 4.9 4,000 80 3,000 60 47 2,000 40 1,018 1,000 20 0 0 2006 2005 2006 2005 18% 11% Generation Exploration & Production Distribution Markets suPErvisory boArD* ExEcutivE boArD* Thorkild meiner-Jensen,** Kresten philipsen, Bent Stubkjær pedersen,** Lars Torpe Christoffersen, Kurt Bligaard pedersen niels Berg-Hansen Anders eldrup *** Carsten Krogsgaard Lars Clausen **** Søren gath Hansen b. 1944. Joined the Supervisory board in 1981, re-elected 1983, b. 1945. Joined the Supervisory board in 2006. b. 1953. Joined the Supervisory board in 2002, re-elected b. 1964. Joined the Supervisory board in Other managerial posts Other managerial posts (CeO) Thomsen *** Other managerial Other managerial 1985, 1987, 1991, 1995, 1999, 2002, 2003. Term of office expires in 2007. 2003. Term of office expires in 2007. 2004, re-elected 2006. and Supervisory board and Supervisory board Other managerial Other managerial posts posts and Supervisory posts and Supervisory Term of office expires in 2007. Other managerial posts and Supervisory board memberships: Other managerial posts and Supervisory board member- Term of office expires in 2007. memberships: memberships: posts and Supervi- and Supervisory board board memberships: board memberships: Sydbank A/S (Chairman) ships: energiGruppen Jylland A/S (member) Other managerial posts and Supervisory brfkredit A/S None sory board member- memberships: None None Lars nørby Johansen (Deputy Chairman), Privathospitalet A/S (Chairman) board memberships: (member) ships: energiGruppen Jylland b. 1949. Joined the Supervisory board in 1997, re-elected 1998, DTL A/S Dansk-Tysk Landbrugsinvestering (member) Asbjørn Larsen, Aktieselskabet Danatech engineering None A/S (Deputy Chairman) 2000, Deputy Chairman 2001, 2003, 2005, 2006. CSC Datalab A/S (Chairman) b. 1936. Joined the Supervisory board in 2003, re-elected (member) energiGruppen Jylland Term of office expires in 2007. CSC Scandihealth A/S (Chairman) LTC Holding A/S (member) Varme A/S (member) Central power stations Hydropower Geographical focus areas for the exploration electricity distribution Gas distribution Gas storage facility electricity and gas markets electricity sales in 2006: 2005, 2006. Other managerial posts and Supervisory board memberships: Dansk Affald A/S (Chairman) Telefaction A/S (member) NNIT A/S (member) and production activities near Stenlille on 5,870 GWh Term of office expires in 2007. At the end of 2006, the generating capacity from power falck A/S (Chairman) Dansk retursystem A/S (Chairman) Actimizer A/S (member) Onshore windfarms The electricity distribution The gas distribution Zealand Sales offices Other managerial posts and Supervisory board member- stations was 5.7 GW, while the capacity from wind The activities in exploration & Production focus on building TV2/Danmark A/S (Chairman) Syd energi Holding A/S (Chairman) Capidea A/S (member) customers are located in customers are located Gas sales in 2006: ships: power and hydropower-based stations was 0.9 GW. up gas reserves to underpin the gas sales activities, and William Demant Holding A/S (Deputy Chairman) Syd energi amba (Chairman) Offshore windfarms North Zealand, Copen- in southern Jutland and energy exchanges and hubs 8,202 million m3 belships ASA (Chairman) Power generation in 2006: 13,200 GWh production of oil and natural gas. In 2006, production Stig Jørgensen og Partners AS (Chairman) Netsam A/S (member) poul Arne nielsen, hagen and frederiksberg South and West Zealand fMC Technologies Inc. (member) Heat generation in 2006: 17,165 TJ amounted to 13.8 million boe. Det Danske Hedeselskab af 01.01.2002 A/S (member) Saga fjordbase AS (Deputy Chairman) b. 1944. Joined the Supervisory board in 2006. fritz H. Schur (Chairman), A/S Plantningsselskabet Sønderjylland (member) Selvaag Gruppen AS (member) Term of office expires in 2007. b. 1951. Joined the Supervisory board in 2005 as Chairman. Other managerial posts and Supervisory eBITdA eBITdA eBITdA eBITdA Term of office expires in 2007. board memberships: Generation Exploration & Production Distribution Markets Jesper magtengaard,** Svend Sigaard, Other managerial posts and Supervisory board memberships: Ny Stevns Municipality (Mayor) b. 1947. Joined the Supervisory board in 2003. b. 1958. Joined the Supervisory board in 2002, re-elected DKKm DKKm DKKm DKKm fritz Schur Gruppen (CeO) SeAS-NVe a.m.b.A. (Chairman) Term of office expires in 2007. 2004, 2006. Term of office expires in 2007. 8,000 7,620 6,000 5,556 3,000 25,000 24,115 CeO and/or Chairman in companies of the fritz Schur Group SeAS NVe Holding A/S (Chairman) DKK DKK DKK DKK Other managerial posts and Supervisory board member- 2,560 Post Danmark A/S (Chairman) SeAS-NVe Strømmen A/S (Chairman) bn 5,000 bn 2,500 bn bn Jens Kampmann, ships: 2.7 4,346 3.5 1.0 20,000 1.6 f. Uhrenholt Holding A/S (Chairman) SeAS Transmission A/S (Chairman) 6,000 b. 1937. Joined the Supervisory board in 2005. Nebraska ApS (CeO) Generation produces energy from 4,000 The exploration and 2,000 Distribution takes care of DONG With around one million brd. Klee A/S (Deputy Chairman) Term of office expires in 2007. Dagbladet/frederiksborg Amtsavis A/S (Chairman) 15,000 13,885 boConcept Holding A/S (Chairman) efficient power stations and rene- production activities are energy’s electricity and gas customers, Markets is byrumLabflex A/S (member) Other managerial posts and Supervisory board memberships: Østtrafik A/S (Deputy Chairman) 4,000 3,000 1,500 Stjernholm A/S (Chairman) wable energy sources. Generation 2,437 carried out in Danish, distribution and gas storage in Denmark’s largest electri- SAS Ab (member) SAMPeNSION A/S (member) 10,000 Sund og bælt Holding A/S (Chairman) DanTruck-Heden (Deputy Chairman) De POST NV/LA POSTe SA (member) is a market leader within design, 2,000 1,412 Norwegian, UK and 1,000 857 Denmark. city and gas supplier. Öresundsbro Konsortiet Ab (Chairman) Aalborg Industries Holding A/S (member) * Other managerial posts and Supervisory board memberships 2,000 1,517 construction and operation of faroese waters.