UPDATED: Andel has had a few profitable years, the latest accounts, as a result of the very high prices in the energy industry. But now these are more back to normal, and for the energy and fiber network group it has also meant that the first half of 2024 has not been profitable.
Thus, Andel lost DKK 130 million in the first half of the year. DKK before tax. The result is negatively affected by fluctuating energy prices, high material prices and the level of interest rates. Also, a type of European gas capacity contract, which the energy trading company Energi Danmark entered into and made a lot of money from in 2022, made a loss in the first half of the year, but ends up overall as a very good business.
The result was realized by a turnover of DKK 42.1 billion. DKK in the first half of the year. As a result of lower energy prices, it is significantly lower than in the first half of 2023, when it was DKK 69.9 billion. DKK
These factors cause Andel to lower its expectations for the year's result from the previously announced profit of DKK 300 million. DKK to a lower result, which Andel informs DOI.dk will be closer to zero than DKK 300 million. DKK - but still positive.
Despite the decline in earnings, Andel maintains its ambition to invest more than DKK 5 billion. DKK across the group and its subsidiaries, which is a historically high level for the group.
- We will not let high interest rates, material prices and other economic fluctuations become an excuse for inaction. The climate crisis is not waiting for better times. We owe it to the planet and future generations to invest massively in renewable energy and infrastructure. And we see our investments as action on the words that we will take leadership in a greener and more electrified future, says Andel's CEO, Jesper Hjulmand, in a press release.
In the first half of the year, Andel invested approx. 2.3 billion DKK against 1.5 billion DKK in the same period last year. There are i.a. 922 million have been invested. DKK 397 million in expansion of the electricity grid in Zealand, Lolland-Falster and the islands via the grid companies Cerius and Radius Elnet. DKK in the construction of solar parks together with Better Energy and DKK 371 million. DKK in Clever's expansion of Denmark's largest charging network for electric cars.
Layoffs in Share of Energy
However, the negative result and the downward adjustment will not be allowed to go untouched. Andel thus states that "it creates a need to reduce costs and increase earnings."
The adaptation is, among other things, happened on Wednesday in Andel Energi, where CEO Marlene Holmgaard Fris states that there has been a round of layoffs.
"Unfortunately, we have had to say goodbye to good colleagues. This is due to several things. Partly, the energy market has changed in recent years. The competition has become tougher, and it has become more difficult to run an energy company. At the same time, the outside world is increasing demands on energy companies. It all requires that we as a business develop and change our focus so that we can also meet the demands of our customers and the outside world for a modern energy company. This is why we at Andel Energi have changed our organization this week , so that it fits a future energy market that faces increased commercialization," she writes in a post on her LinkedIn Profile.
Andel informs DOI.dk that 29 employees are covered by the round of layoffs.
Proportion indicates that an adjustment is necessary to maintain current investment ambitions..
- Since our large investments also affect the bottom line, we have of course discussed whether we should continue at the same speed or ease off the accelerator a little. But here the form of ownership as a cooperative really shows its value, says Jesper Hjulmand and continues:
- With a strong hinterland behind us, we value the responsibility of creating a greener future over screwing up short-term profit. We are financially robust, and there is strong support for not thinking in years, but decades. For the benefit of both the Danes, the green transition and Andel's future.
Andel's equity is also robust and amounts to over DKK 30 billion. DKK
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