ORSTED DC

Orsted

Energy


Presented:04/24/2017
Price:DKK268.80
Cap:$16.88B
Current Price:DKK436.00
Cap:$27.37B

Presented

Date04/24/2017
PriceDKK268.80
Market Cap$16.88B
Ent Value$19.26B
P/E Ratio193.38x
Book ValueDKK92.84
Div Yield0.02%
Shares O/S420.38M
Ave Daily Vol1,047,078
Short IntN/A

Current

PriceDKK436.00
Market Cap$27.37B
DONG Energy A/S engages in the generation and distribution of energy and gas. It operates through the following segments: Wind Power, Bioenergy & Thermal Power, Distribution & Customer Solutions, and Oil & Gas. The Wind Power segment develops, constructs, owns and operates offshore wind farms in Denmark, the UK, Germany, the Netherlands, the USA and Taiwan. The Bioenergy & Thermal power segment operates power and heat generation from CHP plants in Denmark and a gas fired power plant in the Netherlands. The Distribution & Customer Solutions segment includes power and gas distribution and sales in the wholesale and retail markets in Denmark, Sweden, Germany and the UK as well as optimization and hedging of the Group's overall energy portfolio. The Oil & Gas segment drills and operates oil and gas production in Denmark, Norway, the UK, the Faroe Islands and Greenland as well as ownership interests in subsea gas pipelines and a gas treatment plant in the UK. The company was founded in 2006 and is headquartered in Fredericia, Denmark.

Please note, on10/31/17, Dong Energy (DENERG DC) changed it's name to Oersted A/S (ORSTED DC). The content of this idea will make reference to the original company name and ticker symbol.

Publicly traded companies mentioned herein: DONG Energy A/S (DENERG DC), Eversource Energy (ES), General Electric Company (GE), Siemens AG (SIE GR), Vestas Wind Systems A/S (VWS DC)

Highlights

The presenter is long shares of global offshore wind farm leader DONG Energy (ENERG DC) at ~270 DKK. He briefly described the company’s history and successful 2016 IPO, and explained how he looks for opportunities where the narrative around a company/investment can change over 2+ years, in his favor. Looking at the “bigger picture”, the world is changing and marginal energy assets are getting backed out. Cleaner forms of energy are in focus. This trend is a good one, regardless of the investment opportunity, but when he considers the potential gains from technological advancements that will allow newer wind turbines to be bigger and more efficient it could lead to the kind of inflection he generally looks for.

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Idea Discussion

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