ODSHERRED: The latest accounts for 2023 show a historically large deficit in Odsherred Forsyning. The accounts ended in a deficit of 619 million DKK, which is miles away from the year before, when the company had a profit of 7.3 million DKK.
Although revenue has increased from 128.3 million DKK in 2022 to 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 discussed 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 significantly adjusted downward.
Thus, the group's equity amounts to only 30 million DKK, according to the accounts. This is a significant downward adjustment compared to the 678.6 million. DKK in 2022.
The downward adjustment is due to the decision to slow down the ongoing rollout of district heating. It is uncertain whether financing can be obtained to complete the project.
Completely crazy
Economics professor Per Nikolaj Bukh, who has been following the case for a long time, has no doubt that this is a completely unique situation for Odsherreds Forsyning and the municipality:
- District heating companies have gone bankrupt before. But it has been on a much smaller scale. This is the real deal. It is so big and extensive, and I have not seen that before. I also cannot remember a municipal utility company ending up like this - it is unusual. The size and circumstances are also completely unusual and completely crazy, he tells Sjællandske Nyheder.
Professor Bukh notes that the accounts are 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 larger deficit than if the company continued operations.
- Therefore, the values are not priced at 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, with the aim of securing the company's capital base and continued operations in the long term," says the presentation at the city council meeting.
The other companies in the group, the water companies Odsherred Vand A/S and Odsherred Spildevand A/S, as well as the emptying company Odsherred Tømning A/S, are currently assessed to be free of risk of being involved and can continue operations.
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