Danish energy company DONG Energy plans to decrease its net investment programme in 2010 and 2011 to lighten its debt load and strengthen its capital structure.
The company said it is likely to decrease net investments to US$1.98bn (DKK10bn) in 2010 and US$1.98-$2.97bn (DKK10-15bn) in 2011 from earlier proposed levels of US$2.97-3.96bn (DKK15-20bn) for both years.
Through these investments, DONG expects to attain a net interest-bearing debt that is the equivalent to nearly treble its EBITDA in 2010.
The company will focus more on renewable energy and achieve its 2020 target of lowering carbon dioxide emissions per produced MW/h by 50%.
DONG is also planning to implement other initiatives to increase cost savings and further strengthen its capital structure.
The net investment of US$3.96bn (DKK20bn) for 2009 remains unchanged.
DONG said that the financial results for 2009 will not be affected by the proposed investment cuts. The net debt for 2009 is likely to be about US$5.54-5.94bn (DKK28-30bn).