Dong Energy will divest its upstream oil and gas business as part of the company’s green transformation and will change its organisational structure to expand the company’s position as a global leader in the transition to more sustainable energy systems.
The Danish energy company has been organised in a conglomerate structure which has been effective during a period of portfolio restructuring where the company has exited some businesses and accelerated or restructured others. With the divestment of the company’s oil and gas business and the portfolio restructuring coming to an end, a new organisational structure and management model will be put in place.
“For the past four to five years – Ceo Henrik Poulsen said – Dong Energy has been in ‘restructuring mode’, divesting non-core businesses, bringing in new equity and taking the company public. With the divestment of Oil & Gas, we’re now at a point where restructuring is coming to an end, and where we need to put the leadership and organisation in place to put full force behind our green growth ambitions.”
An Executive Committee comprising Ceo Henrik Poulsen, Cfo Marianne Wiinholt and business unit Executive Vice Presidents Samuel Leupold (Wind Power), Thomas Dalsgaard (Bioenergy & Thermal Power) and Morten Buchgreitz (Distribution & Customer Solutions) will assume joint responsibility for the whole business. In addition, a new management team consisting of the Executive Committee and Senior Vice Presidents will be established to drive strategic development and cultural alignment across the company. According to the company, the management team will consist of 20 senior executives.
“Organisationally and mentally – Henrik Poulsen added – we’re moving away from the conglomerate structure to a ‘one company’ way of operating. Going forward, we’ll be one company with three business units and a number of shared functions serving the entire company.”
With the new organisation and the divestment of the oil and gas business, a further streamlining of staff structures and cost reductions will be implemented to reflect the revised scope of the company. As a result, a total reduction of 115-135 positions in Denmark is expected.
by Eddy Smith