With EBT of EUR 33.7 million in 2016, Danske Commodities again delivers strong full-year results, improving profit by 10% compared to 2015.
The excellent performance is a direct result of increased profitability in the trading and customer business, as gross profit was up by 3% to EUR 84.7 million, whereas revenue remained steady at EUR 2.9 billion mostly as a result of low European wholesale power prices in the first eight months of the year.
During 2016, the strength of Danske Commodities’ business model was proven in European energy markets characterised by extremes: The first eight months brought historically low price levels and volatility, while the fourth quarter saw exceptionally high prices and volatility due to a cold spell across Europe and unforeseen supply uncertainties.
“Danske Commodities generated profit in all four quarters. This proves our ability to add and create value even in challenging markets, and that we can react fast when volatility increases dramatically. Through our Europe-wide market access and portfolio flexibility we help address market imperfections and balance the energy system,” said Danske Commodities CEO Henrik Lind.
Danske Commodities has invested in strengthening analytical capabilities and specialised trading skills, while initiating the implementation of a new Energy Trading and Risk Management (ETRM) system to enhance risk management and increase efficiency in day-to-day operations.
At the same time, the Company has further strengthened its position as a leading independent provider of direct marketing for renewables customers in Europe by expanding volumes in Benelux, Italy and the United Kingdom.
Danske Commodities ended the year with strong reserves of EUR 104.3 million in cash and cash equivalents.