By Nora Buli OSLO, April 16 (Reuters) - Danish energy trader Danske Commodities on Thursday reported a 52% drop in profits for 2025, citing low volatility and structurally challenged gas markets.
Energy trader Danske Commodities' 2025 profit halves on lower volatility
Danske Commodities Reports Significant Profit Drop Amid Market Conditions
By Nora Buli
2025 Financial Results and Performance Overview
OSLO, April 16 (Reuters) - Danish energy trader Danske Commodities reported on Thursday a larger-than-forecast 52% drop in profit for 2025, citing low volatility and structurally challenged gas markets.
Danske Commodities, owned by Norwegian oil and gas producer Equinor, posted full-year adjusted earnings before tax of 88 million euros ($103.88 million), down from 186 million euros in 2024.
This was below its guided range for earnings before tax of between 100 million and 200 million euros.
CEO Statement and Market Analysis
"The year was characterised by low-volatility markets, which was partly offset by strong performance in power trading and asset management," CEO Jakob Soerensen said in a statement.
Higher volatility never materialised, with both gas and power prices staying relatively calm throughout the year, he added.
Asset Growth and Future Outlook
At the same time, the company grew its portfolio of wind, solar and flexible assets by 2 gigawatts (GW) year-on-year, to 16 GW in 2025, the company said.
While markets should remain structurally tighter, volatility is expected to increase compared to 2025 due to the conflict in the Middle East, Danske Commodities said while forecasting 2026 earnings within a 50-100 million euros range.
Adapting to Geopolitical Events
The company had swiftly adapted to the changes in energy markets caused by the recent geopolitical events, Soerensen said.
"This has meant a good financial start to the new year,” he added.
Additional Information
($1 = 0.8471 euros)
(Reporting by Nora Buli; Editing by Terje Solsvik and Muralikumar Anantharaman)
