Danske Commodities delivers strong performance while bringing balance and liquidity to energy markets
2022 was a turbulent year for energy markets. Political unrest and tight European energy supply led to historically high prices and unprecedented market volatility. As a robust market participant, Danske Commodities helped bring liquidity to the markets, which began to stabilise and returned to normalised price levels by the end of year.
By combining Danske Commodities’ broad market access with the financial strength of its owner, Equinor, the Danish energy trader delivered EBT of EUR 2.2 billion for 2022. As a result, Danske Commodities’ tax contribution for 2022 is its highest ever at EUR 439 million, which places the company among the top corporate taxpayers in Denmark. As part of Danske Commodities’ long-term capital planning, the company also expanded its equity with a capital injection of EUR 3.5 billion from the parent company.
“The financial results for the year firmly underline the strength of the cooperation between Danske Commodities and Equinor. There was an extraordinary need for liquidity in 2022 due to the high market prices and subsequent collateral requirements from the exchanges. Backed by Equinor, we had the necessary capital to be a robust market participant and I am proud that we as a company helped bring balance and liquidity to European energy markets in what was a turbulent year,” said Danske Commodities’ CEO Helle Østergaard Kristiansen.
Danske Commodities’ profits will be reinvested in capabilities needed to manage renewables and new technologies. This is part of Equinor’s ambition to become a leading company in the energy transition. In 2022, Equinor invested 14% of its gross capex in renewables and low carbon solutions, and the goal is to increase the investment rate to 50% by 2030.
When the green energy projects have been financed and developed, the energy must be brought to the market. Danske Commodities plays an important role in making this happen.
“At Danske Commodities, we have specialised in managing renewable energy. We bring new energy to the markets, balance the production and move the energy across borders. This helps optimise the production and consumption of energy,” said Østergaard Kristiansen, and she concluded:
“With the results for 2022, we are well positioned to continue performing our role of bringing balance, liquidity and renewable energy to the market at scale. And that is more important than ever.”
Danske Commodities is active in 40 countries, including Australia, the US, Brazil and all major European energy markets.