Dong Energy Projects 2017 Positive Cash Flow

Denmark's Dong Energy, which confirmed plans to press ahead with an initial public offering, expects positive cash flows from its struggling oil and gas division in 2017, its chief executive said on Thursday.

"We expect to have a positive cash flow from oil and gas in 2017," Dong's Chief Executive Henrik Poulsen said during a conference call, adding that earnings before interest, taxes, depreciation and amortisation (EBITDA) were expected to be significantly lower this year than in 2015.

Dong took a 15.2 billion Danish crowns ($2.3 billion) charge against its oil and gas assets in 2015 due to low oil and gas prices.

He also said Dong expected to start gas production from Britain's Laggan Tormore field in the first quarter of this year, but its Danish Hejre oil field will not start producing in 2017 as previously expected.

Reporting by Nerijus Adomaitis