Sian Crampsie

Dong Energy says it will launch an initial public offering (IPO) within 18 months.

The Danish energy firm is to start preparing for the share placing, including conducting a full strategic review of its oil exploration and production business and continuing its drive to shift away from fossil fuels in the power sector.

Dong said it has been considering plans for an IPO since receiving a capital injection in early 2014. The share placing will be dependent on market conditions, it added.

The firm said that it would "continue to strengthen its position as a world-class clean energy company with a diversified renewables portfolio" as well as its distribution and sales business in its Danish home market. It is aiming to continue driving profitable growth in the offshore wind sector and build on its expertise in the biomass sector to become a market leader.

In the oil and gas sector, Dong is taking steps to adapt to the "new market reality" of a long-term low oil price by optimising its portfolio and reducing costs. It has reached an agreement with the Danish government to divest its gas distribution and oil and gas pipelines to

The Danish government will maintain a controlling shareholding in Dong Energy after the IPO.