ODSHERRED: The latest accounts for 2023 show a historically large deficit in Odsherred Forsyning. 619 million DKK ended the accounts in the red, which is miles away from the year before, when the company had a profit of DKK 7.3 million. DKK
Although revenue has increased from DKK 128.3 million. DKK in 2022 to DKK 156.9 million. DKK in 2023, it has not been enough to prevent a large deficit.
The core of the problem is the subsidiary Odsherred Varme, which has been talked about for a long time. One of the biggest reasons for the large deficit is that the value of the company's assets, for example buildings and equipment in the heating company, has been sharply reduced.
Thus, the group's equity only amounts to DKK 30 million. DKK, it appears from the accounts. This is a significant downward adjustment compared to the 678.6 million. DKK in 2022.
The downward adjustment takes place as a result of the decision to slow down the ongoing rollout of district heating. It is uncertain whether funding can be obtained to complete the project.
Absolutely insane
Economics professor Per Nikolaj Bukh, who has followed the case for a long time, has no doubt that this is a completely unique situation that Odsherreds Forsyning and the municipality are in:
- It has been seen before that district heating companies go bankrupt. But it has been on a much smaller scale. This is the really big blade. It is so big and comprehensive and I have not seen that before. Nor can I recall a municipal utility company ending up this way - it's unusual. The size and the circumstances are also completely unusual and completely crazy, he says to -crazy/" target="_blank" rel="noopener">Zjælland News.
Professor Bukh notes that the accounts have been prepared on the basis that the company is not a "going concern". This means that the assets are valued at their current selling price, which results in a greater loss than if the company continued operations.
- That is why the values are not priced according to a current cost price, and that is why the deficit is so large, he explains.
The accounting figures in Odsherred Forsyning's annual report were published on Monday. These will be discussed at the Finance Committee meeting on Tuesday and the City Council meeting thereafter.
"An intensive process is underway with the company's owner and the company's most important creditors, which aims to secure the company's capital base and continued operations in the long term," reads the presentation of the case at the city council meeting.
The other companies in the group, the water companies Odsherred Vand A/S and Odsherred Spildevand A/S and the drainage company Odsherred Tømning A/S, are currently assessed to be without risk of being involved, and can continue operations.
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