Danske Commodities delivers stable earnings in unpredictable year
In an unusual year, Danske Commodities delivered solid financial results with adjusted EBIT of EUR 44.3 million. Although energy markets and ways of working were seriously affected by the Covid-19 pandemic, earnings for 2020 were stable and level with the previous year.
Driven by its scalable business model, Danske Commodities grew traded volumes by 94% to 2,170 TWh, resulting in an 18% increase in gross turnover while keeping costs stable. The amplified commercial activities were also reflected in the balance sheet total, which was up by 60% to EUR 1.2 billion at 31 December 2020. Danske Commodities has the necessary financial strength to support growth of this magnitude as available cash in 2020 more than doubled to EUR 162 million, combined with equity of EUR 332 million.
“Overcoming tough trading conditions, Danske Commodities kept up the pace and delivered solid earnings at the same level as the previous year. When the pandemic hit, we acted swiftly, implemented contingency plans and set up trading stations in the homes of our traders to safeguard business operations,” said Danske Commodities’ CEO Helle Østergaard Kristiansen.
The results were produced in a year characterised by unpredictable energy markets. Many countries imposed national lockdowns, causing significant changes to consumption patterns. Normally, consumption can be forecasted based on historical patterns and seasonal swings; however, the lockdowns caused unprecedented decreases in consumption and introduced new consumption patterns across energy markets.
Navigating safely through the pandemic, Danske Commodities continued growing its business with owner Equinor.
“We received a Baa1-rating from Moody’s Investor Service, enabling us to take on more commercial activities. And as part of our strategic ambition to become a more diversified business with additional income streams, we signed a 15-year PPA with the partly Equinor-owned offshore wind farm Dogger Bank in the UK and became responsible for the physical power supply for Equinor’s onshore and offshore assets in Norway,” said Kristiansen, and she concluded:
“Moving forward from the restraints of the pandemic, Danske Commodities is well-positioned to continue its growth journey on a global scale.”
Danske Commodities is currently trading in 39 countries, including Australia, the US and all major European energy markets.