Dong told wind push must see payback

Dong's Gunfleet Sands suffered a DKr960m budget overspend  

Dong's Gunfleet Sands suffered a DKr960m budget overspend  

Dong Energy has been put on notice by state auditors that it must start delivering financially on its big push into offshore wind.

The Danish National Audit Office, Rigsrevisionen, points out that  high levels of investment combined with falling earnings mean that Dong's key ratios are under pressure compared with its peers.

"It is therefore crucial that the company’s large investments, especially within wind, generate the expected return in coming years,” the auditors say.

Dong's equity ratio was satisfactory in  2007-2011, but with the exception of 2008 and 2011, earnings were not enough to ensure a positive direct return on capital costs.

In recent years, the state-owned utility has invested more than DKr80bn ($14.3bn) transforming Log in to read complete article.

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