The 2025 profits of energy trader Danske Commodities are cut in half due to lower volatility
Danske Commodities, a Danish energy trader, reported on Thursday that its profit would be lower than expected by 52% in '2025. They cited low 'volatility' and structurally challenged gas market.
Danske Commodities (owned by Norwegian oil producer Equinor) reported a full-year adjusted profit before tax of 88 millions euros ($103.88million), down from the 186 million euro?in 2024.
The company's guidance for pre-tax earnings was between 100 and 200 millions euros.
In a statement, CEO Jakob Soerensen said that the year was characterized by low volatility markets. This was partially offset by strong performances in 'power trading' and 'asset management.
He added that the higher volatility was never experienced, as both gas and electricity prices remained relatively stable throughout the year.
The company reported that its portfolio of assets, including wind, solar, and flexible assets, grew by?2 GW per year, reaching 16 GW by 2025.
Danske Commodities forecasted a range of '2026 earnings between 50-100 millions euros.
Soerensen stated that the company quickly adapted to changes in the energy markets caused by recent geopolitical events.
He added, "This has meant a good start for the new financial year." $1 = 0.8471 Euros (Reporting and Editing by Terje Sollsvik, Muralikumar Aantharaman).
(source: Reuters)
