Following a turbulent 2022 dominated by the supply crisis in Europe, energy prices and volatility moved closer to pre-crisis levels during 2023.

This normalisation was mainly driven by reduced energy demand, high gas storage levels and a mild European winter. Price and volatility levels continued to decline throughout the year.

Under these market conditions, Danske Commodities delivered adjusted earnings before tax (EBT) of EUR 359 million, underlining that we have built a stronger and broader business. In recent years, we have increased our global market presence and our portfolio of renewables and flexible assets, and this growth continued in 2023.

Growing portfolio of renewables and flexible assets

In 2023, we grew our portfolio of renewables and flexible assets under contract by 20%, from 10 GW in 2022 to 12 GW.

Strategic progress in our asset-backed trading business was among my personal highlights of the year. This includes the growth in our wind and solar portfolio across multiple geographies and the signing of our first battery storage asset in the UK. With the onboarding of the UK battery storage asset, our portfolio of flexible assets has now reached a volume of 1.7 GW across Denmark, Sweden, Norway and the UK.

I am also pleased to see that our collaboration with our parent company Equinor once again produced measurable results within the renewables space. To share a few examples, Danske Commodities will risk manage the 800 MW asset portfolio of leading Brazilian renewables developer Rio Energy and the power produced by Polish onshore wind farm Wilko, both acquired by Equinor in 2023.

To support our growing asset portfolio, we have invested in weather analysis infrastructure, our algorithmic trading setup, flexibility in power production, the implementation of a new deal capture system in our gas business, and, not least, in our people.

Our global journey continues

We have unlocked new opportunities for our business model through increasing market liberalisation and green ambitions around the world. In 2023, we took another important step in our global journey as we completed our first trades in the Brazilian power market from our newly established office in São Paulo.

It was also the year when we prepared the company to enter the Japanese power market. The market entry was completed in January 2024 from our trading desk in Singapore.

With these market entries, we now have activities on five continents, underlining our position as a global energy trading company.

Ready to handle the complexities of tomorrow

The market stabilisation in 2023 led to declining energy prices and decreasing market volatility throughout the year. The downward trend in prices and volatility is expected to continue even further in 2024. Navigating a new normal for energy markets that is still being defined, we expect earnings before tax (EBT) for 2024 to be in the EUR 150-350 million range.

Looking further ahead, we expect the energy landscape will become greener, but also more complex, with the build-out of renewable energy sources and the introduction of new flexible technologies such as batteries and power-to-X. The need for companies like Danske Commodities to optimise energy markets and bring balance on a global scale will only increase in the coming years. With a growing asset portfolio, global expansion efforts and continuous investments in our trading and technological setup, Danske Commodities is well-positioned to do our part in the energy transition.