Danske Commodities delivers strongest financial performance in company history

15.03.2018

 

Higher trading volumes and a lower cost base drove a 79% increase in EBT, demonstrating the scalability of Danske Commodities' business model. 

Danish energy trading company Danske Commodities today reported its 2017 financial results showing a 79% increase in EBT to EUR 60 million – a record result for the company.

The performance was driven by an increase in volumes traded and higher wholesale energy prices, which produced a 65% revenue increase from EUR 3,321 million in 2016 to EUR 5,472 million in 2017. Gross profit was up by 22% to EUR 103 million while costs declined by 7%.

As expected, pressure on margins continued in 2017 with the gross margin declining to 1.9% from 2.6% in 2016. The impact of lower margins was offset by the higher volumes traded.

“In ever more competitive European energy markets, our performance shows that we have built a platform with the expertise, systems and market access necessary to achieve significant scalability,” said Danske Commodities CEO Henrik Lind.

Revenue from power trading grew by 80% to EUR 2,943 million in 2017 while gas trading produced revenue of EUR 2,529 million, a 50% increase on 2016.

The portfolio of more than 6,000 MW of renewable and conventional assets under management in eight countries was further optimised, creating value for customers through trading, balancing and risk management services. In the UK market, deal flow substantially improved, certificate trading activity increased and the renewables and consumption portfolio expanded. In addition, Danske Commodities entered into trading relationships with new UK suppliers, offering risk management and trading solutions.

During the year, Danske Commodities continued to expand its European presence by entering three additional power and gas trading markets. An automated trading team was established and analytical capabilities were enhanced across all trading functions. The company also took steps to strengthen business scalability and reduce risk through the introduction of a new energy trading and risk management system.

Danske Commodities was also ranked among the 25 best places to work in Denmark based on employee satisfaction ratings, by international survey provider Great Place to Work®.

“Achieving our best ever annual results is an important milestone, but the potential of Danske Commodities will continue to unfold in the coming years: we will strengthen our core business even further, we will explore the potential for trading new commodities, and we will expand to new markets in a controlled manner – one market at a time. Our business platform is stronger than ever and I look forward to continuing Danske Commodities’ growth path together with our skilled and passionate employees,” Henrik Lind concluded.

WHO IS DANSKE COMMODITIES

Danske Commodities is the leading independent energy trading company, specialising in short-term power and gas trading. Every day, the company completes more than 3500 trades across 37 countries in Europe, constantly moving energy from where there is more than needed to where it is needed most. With more than ten years of experience, Danske Commodities utilises its expertise, unmatched market presence and 24/7 trading setup to offer balancing, optimisation and hedging services to energy producers and suppliers.

Get in touch

Mads Schmidt Christensen Danske Commodities

MADS SCHMIDT CHRISTENSEN
Director, Head of Strategy & Communications

For more information please contact Mads Schmidt Christensen.

CONTACT

Direct contact information:

Mads Schmidt Christensen

T: +45 2794 2249

E: msc@danskecommodities.com

Thanks for your enquiry. We will get back to you as soon as possible.

EBT

60.3

EURm in 2017

GROSS PROFIT

103.4

EURm in 2017

RETURN ON EQUITY

49.8

% in 2017