2022 was a turbulent year for energy markets. Political unrest and a pressured European energy supply led to historically high prices and unprecedented market volatility. The market has managed to profit from some energy traders, and among them is Danske Commodities.
By combining its broad market access with the financial strength of owner Equinor, the company delivered an adjusted operating profit (EBT) of DKK 16.7 billion for 2022, but the bottom line is 1.47 billion euros (10.96 billion kroons). which is a large increase from the 303 million euros that the energy trader set a record with in 2021. The result is based on revenue of 6.44 billion euros against 2.45 billion euros in 2021.
The result comes from the company's extensive trading activities, of which 96.6 percent of the activities in 2022 took place outside Denmark.
- The result for 2022 clearly shows the value and strength of the collaboration between Danske Commodities and Equinor. The need for liquidity was extraordinary in 2022 due to the high market prices and the resulting requirements for guarantees from exchanges. With Equinor at our back, we have had the necessary capital to be a robust market participant, and I am proud that we as a company have helped bring liquidity and balance in a turbulent year for European energy markets, says Danske Commodities' CEO Helle Østergaard Kristiansen.
Danske Commodities also notes that although most of the company's trades take place abroad, the company has paid 3.3 billion. DKK in Danish corporate tax.
Profits to be invested
In addition to the billion-dollar Danish tax contribution, part of Danske Commodities' profits are invested in being able to handle renewable energy and new low-carbon technologies.
This is part of Equinor's ambitions to be a leading company in the green transition. In 2022, Equinor invested 14 percent of the company's gross investments in green energy projects, and the ambition is to increase investments to 50 percent by 2030.
Once the green energy projects have been financed and developed, the energy must be brought to the market. Danske Commodities plays an important role here.
- At Danske Commodities, we specialize in handling renewable energy. We bring the energy to the market, balance production so that there are no disruptions, and trade the energy across borders. This ensures that energy is produced and consumed as efficiently as possible,” says Helle Østergaard Kristiansen and concludes:
- With the result for 2022, Danske Commodities is well equipped to continue to fulfill its role of creating balance, bringing liquidity and delivering renewable energy to the market on a large scale. And that is more important than ever before.
Danske Commodities is active in 40 countries, including Australia, the USA, Brazil and all major European energy markets.
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