Denmark, Goldman Decide on Possible Split of Dong After 2015

Denmark’s government, Goldman Sachs Group Inc., and the other owners of Dong Energy A/S will base any decision to split up the state-backed utility on a review due to be published later this year, Danish Finance Minister Bjarne Corydon said.
“A plan is being drafted for the future development of Dong Energy ahead of the stock-exchange listing,” Corydon said in an e-mailed reply to questions forwarded by his office. “Based on that, a decision will be made. The plan is expected to be completed in the second half of 2015.”
The review, conducted by JPMorgan Chase & Co., explores a number of options including one that envisages Dong Energy spinning off, or selling, its oil exploration and production unit, Bloomberg News reported last month, citing three people with knowledge of the matter. Corydon said the review isn’t focused “specifically on analyzing the company’s E&P unit.”
Skaerbaek, Denmark-based Dong Energy, the world’s largest operator of offshore wind parks, is struggling to find the right balance between its operations in wind, thermal power and oil and gas as energy prices fall. Some of Dong Energy’s bondholders have spoken in support of the prospect of getting rid of the E&P business, arguing the unit has turned into a liability.