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Financial statements show healthy core business

Today, Energi Danmark publishes its 2023 financial statements. Energi Danmark exits the financial year 2023 with a profit before tax of DKK 34 million. The financial statements also show that Energi Danmark has a financially sound core business and loyal customers.

May 2, 2024

After an extreme year in 2022 with sharp price increases and large price fluctuations in the international energy markets, 2023 has been more normal. The more normal conditions in the international energy markets had a significant impact on Energi Danmark’s revenue in the financial year 2023. As a result, revenue dropped from an extreme DKK 345 billion in 2022 to DKK 120 billion in 2023.

“Our customer business has benefitted from a calmer year in the energy markets. Owing to the decrease in volatility and lower prices in the market, our customer business has improved its earnings in 2023 compared to 2022. Despite the difficult times caused by the international energy crisis, we have maintained the number of metering points. This reflects our very loyal customer base, solid core products and strong customer relations among large corporate customers in the Nordic region,” says Louise Hahn, who has been CEO of Energi Danmark since August 2023.

Robust and balanced business model

Energi Danmark’s 2023 financial statements show a profit before tax of DKK 34 million.

“We have a financially sound core business. The reason why our profit is a relatively modest DKK 34 million is the loss of DKK 2 billion incurred by Energi Danmark on specific gas capacity contracts in 2023; contracts that accounted for a significant part of the extraordinary profit of DKK 11.3 billion before tax in 2022. If we exclude the effect of these contracts, Energi Danmark’s core business delivers a solid profit,” explains Louise Hahn.

The loss on gas capacity contracts is partly offset by positive earnings on wind contracts of DKK 1.59 billion. Energi Danmark trades in energy capacity in a market with large fluctuations. At the same time, this implies that earnings on gas capacity contracts and certain types of wind contracts may vary significantly from year to year.

Louise Hahn has this to say about Energi Danmark’s trading business:

“Our trading team has taken responsibility and delivered solid results. We have managed to attract new specialists who have contributed positively to both our commercial strategies and culture. Overall, the trading team has delivered a gross profit in line with previous years when we exclude the effects of the extraordinary gas capacity contracts from 2022.”

Focus on new strategy

For some time, Energi Danmark has been conducting a comprehensive analysis of all its business areas. The purpose of doing so is to create a comprehensive overview of the company’s business and market potential.

“In 2023, we focused on developing our organisation, culture and processes even further to build an even stronger foundation. For instance, we have worked on our governance, risk management and transparency framework. We have done so while carrying out a major analysis that will result in a new business strategy for Energi Danmark; this is currently in process,”  Louise Hahn clarifies.

Energi Danmark’s new strategy is expected to be presented in its final version in the second half of 2024.

Key financial figures

Revenue:                                                                    DKK 119,792 million

Equity:                                                                        DKK 8,707 million

Profit for the year before tax:                            DKK 33.8 million

Loss for the year after tax:                                  DKK 0.6 million