Procurements for DKK 50bn over the next five years
DONG Energy is facing a very exciting task, involving capital investments in excess of DKK 50bn over the next five years. This represents a major challenge for the entire organisation – not least our procurement function – and it calls for analytical skills and know-how within many different areas. Our procurement situation is constantly changing as a result of global market developments, movements in commodity prices and more international production. This also makes the role of the procurement staff increasingly complex, calling for many different skills.
DEEP - DONG Energy Excellence Program
The DONG Energy Excellence Programme is one of the Group’s selected focus areas. DEEP is inspired by the LEAN philosophy, which best matches our corporate values and requirements. The vision of the programme involves developing a culture of change that generates ongoing, substantial and permanent improvements, expands employee competencies and creates a more attractive workplace.
The programme is running in the form of pilot projects throughout the organisation. For example, a DEEP process has been conducted for the budget procedure in one of our business segments. The goal was to create a better overview of the budget process and reduce the time spent on budgeting. The project resulted in a 50% reduction of the time spent by management on the budget while also creating a better overview of the overall budget by developing and standardising the spreadsheets used in the process.
We are responsible for DONG Energy’s portfolio of gas, electricity and CO2 in terms of development, optimisation and hedging. We ensure a long-sighted portfolio – from 2 till 15 years – and this form the basis of our long-sighted investment decisions and strategy.
The analytic work covers overall monitoring of market development and impacts on our portfolio to detailed calculations of required capacities on for instance gas import to the Danish/Swedish markets. Furthermore we prepare business cases on selected business activities and use them in our strategy work and business plans.
We focus on commercial issues and our core competence is to bind together analyses and business. Our colleagues possess vital analytic skills enabling them to comprehend our specialists and have unique business understanding and know how to communicate. We focus on combing theory and practice to ensure business results.
We work closely with other analysts in the organisation, with our representatives and sales managers. Part of our job is to participate in negotiations in international and regional gas companies. Furthermore we often are in charge of project management in strategy and development projects.
In Portfolio Optimisation our primary focus is the development of quantitative market based valuation models. One specific example of this is an ongoing project where we seek to develop a quantitative model which is responsible for the price simulation of both spot and forward prices. This model aims to deliver market-implied prices to a broad range of valuation tasks in our everyday work, such that we can support and assist the Front Office traders in their investment/trading decisions.
The development of such models requires employees who have profound knowledge of financial theory, mathematics and statistics. The current blend of employees in Portfolio Optimisation are individuals who pose these features.