Annual Report
2024
TABLE OF CONTENTS
Management’s review
Executive review ................................................................................................................................................................................................... 2
Financial highlights and ratios ........................................................................................................................................................................ 4
Statutory reporting on corporate governance .............................................................................................................................................. 6
Risk management ............................................................................................................................................................................................... 10
Management’s statement on the annual report ......................................................................................................................................... 12
Independent auditor’s report .......................................................................................................................................................................... 13
Financial statements
Statement of comprehensive income ............................................................................................................................................................ 15
Balance sheet ...................................................................................................................................................................................................... 16
Statement of changes in equity ...................................................................................................................................................................... 18
Statement of cash flows .................................................................................................................................................................................. 20
Notes to financial statements
Basis of reporting ............................................................................................................................................................................................... 21
Earnings ................................................................................................................................................................................................................ 22
Risk management ............................................................................................................................................................................................... 23
Other financial notes ........................................................................................................................................................................................ 32
Working capital .................................................................................................................................................................................................. 35
Capital employed .............................................................................................................................................................................................. 42
Tax .......................................................................................................................................................................................................................... 48
Other notes........................................................................................................................................................................................................... 49
Annual Report 2024 EXECUTIVE REVIEW 2
EXECUTIVE REVIEW
SOLID EARNINGS AND BIGGEST RENEWABLES PORTFOLIO IN GROUP HISTORY
In 2024, Danske Commodities delivered a financial re-
sult of EUR 176 million in adjusted EBT (reported EUR 202
million according to IFRS Accounting Standards), while
expanding its global presence and building the biggest
renewables portfolio in the Group’s history.
With adjusted gross profit of EUR 243 million (reported
EUR 276 million according to IFRS Accounting Stand-
ards) and adjusted EBT of EUR 176 million (reported EUR
202 million according to IFRS Accounting Standards),
Danske Commodities delivered a solid financial result
within its guidance for the year of EUR 200-400 million
in gross profit and EUR 150-350 million in EBT. The result
was mainly driven by a strong performance in Danske
Commodities’ power business, while the gas business
struggled due to a challenging environment for the gas
storage portfolio and markets characterised by geopo-
litical risk.
With the market conditions in mind, Danske Commodi-
ties finds the earnings for the year satisfactory and is
proud to say that while delivering these results, signifi-
cant strategic progress was also made throughout the
year. Strategic highlights included a strengthened posi-
tion within management of renewables and flexible as-
sets, an expanded global footprint, an enhanced algo-
rithmic trading setup, the implementation of a new gas
ETRM system landscape and the introduction of a new
employee value proposition to make Danske Commodi-
ties an even better place to work.
RECORD PORTFOLIO OF RENEWABLES AND FLEXIBLE AS-
SETS
In 2024, Danske Commodities once again grew its port-
folio of wind, solar and flexible assets, reaching a total
of 14 GW under contract. This is an increase of almost
20% compared to 2023 and a new record for the Group.
Apart from the sheer growth in numbers, highlights of
the year included signing the biggest renewables deal
in Danske Commodities’ history with a 1.4 GW balancing
agreement for Polish offshore wind projects Bałtyk 2
and 3 and going live with the Group’s first renewables
asset in Brazil, the 531 MW solar park Mendubim.
Within the flexible asset space, Danske Commodities
signed an agreement to optimise Kassø, the world’s
largest commercial Power-to-X facility, located in
Southern Denmark, expanded its battery portfolio in the
UK with the Welkin Mill battery storage asset and
reached the milestone of optimising more than 100
combined heat and power plants in Denmark, making
Danske Commodities the biggest participant in the Dan-
ish decentralised market.
Danske Commodities approaches asset management
with a portfolio mindset, understanding that renewa-
bles and flexibility go hand in hand as renewable en-
ergy cannot stand alone.
NOW ACTIVE ON FIVE CONTINENTS
A cornerstone of Danske Commodities’ current corpo-
rate strategy, ‘Transition FWD’, is the global expansion
of its business model with the aim of being active on
five continents by 2025. This target was reached when
the Group successfully entered the Japanese power
market in January 2024. In the coming strategy period,
Danske Commodities will be looking into physical trad-
ing as part of gearing up to support the energy transi-
tion and the growing share of renewables in the country.
STRENGTHENED SETUP FOR ALGORITHMIC TRADING
Trading is at the core of Danske Commodities’ business.
The Group’s trading engine and market presence enable
balancing and optimisation services for wind farms, so-
lar parks and flexible energy sources, and it is through
trading that Danske Commodities brings energy from
where it is plentiful to where it is needed most, thereby
helping security of supply.
The number of trades conducted during a single day has
risen tremendously over the past years, and in 2024, the
number of average trades a day grew to more than
60,000. On peak days, daily trades can even surpass
100,000. Many of these trades are carried out by auto-
mated solutions overseen by traders. When it comes to
algorithmic trading, speed is of the essence, which is
why Danske Commodities strengthened its tech setup in
2024 to make algorithmic trading faster and more scal-
able.
SUSTAINABLE HIGH PERFORMANCE. TOGETHER.
Working in an energy trading company means working in
a high-performance environment. The people of Danske
Commodities may be a diverse group in terms of educa-
tion, age, nationalities and cultural backgrounds, but
they all have one thing in common: they are ambitious.
They have joined Danske Commodities to make a differ-
ence.
Danske Commodities takes pride in fostering a work-
place, where ambitious people thrive in a high-perfor-
mance environment, now and for the years to come. In
2024, the Group introduced a new employee value prop-
osition called ‘Sustainable high performance. Together.’,
aiming at ensuring that the high-performance culture is
sustainable over time. The employee value proposition
outlines a range of initiatives to support this, including
an increased budget for people development, employee-
driven donations to charities of their choosing, a new
health strategy and, not least, the so-called ‘Fuel Fri-
days’ – an extra monthly day off that employees can use
on any activity that fuels their energy.
Annual Report 2024 EXECUTIVE REVIEW 3
EXECUTIVE REVIEW – CONTINUED
OUTLOOK: CHALLENGING MARKET CONDITIONS AHEAD
In 2025, Danske Commodities expects market conditions
to be impacted by geopolitical uncertainty and ongoing
challenges in the renewables market. Based on this out-
look, the anticipated EBT for 2025 is within the EUR 100-
200 million range. Though the energy transition is chal-
lenged, companies like Danske Commodities, who can
optimise energy markets and help balance supply and
demand on a global scale, will only become more rele-
vant as the world’s need for energy continues to grow.
Despite challenging market conditions ahead, Danske
Commodities’ strategic ambitions are high, and the
commitment to contributing to the energy transition re-
mains as strong as ever.
THE GROUP’S MAIN ACTIVITY
Annual Report 2024 FINANCIAL HIGHLIGHTS 4
FINANCIAL HIGHLIGHTS AND RATIOS
GROUP FIGURES
EUR '000 2024 2023 2022 2021 2020
Income statement
Trading income and revenue from contracts with
customers
2,425,514 3,070,581 6,555,371 2,451,083 791,683
Gross profit 276,239 410,103 2,178,526 475,666 126,402
Profit before financial income
162,670 322,767 2,068,955 394,127 54,312
Net financials 39,360 130,432 -77,775 -6,922 -2,959
Profit before tax (EBT) 202,030 453,199 1,991,180 387,205 51,353
Profit for the year 149,303 357,120 1,555,794 302,909 40,207
Balance sheet
Balance sheet total 3,324,973 4,360,737 14,843,202 7,488,231 1,231,814
Equity 2,185,576 2,795,018 5,688,472 634,498 332,393
Cash flow statement
Cash flow from operating activities 837,277 3,568,964 -2,222,907 -198,975 143,031
Cash flow from investing activities 3,138 -61,189 -6,203 -3,332 -20,928
- hereof investments in intangible assets -3,658 -4,598 -3,078 -2,513 -21,725
- hereof investments in property, plant and
equipment
-1,379 -2,590 -3,125 -819 -915
Free cash flow 840,415 3,507,775 -2,229,110 -202,307 122,103
Cash flow from financing activities -759,142 -4,758,087 -2,294,669 1,404,048 -1,050
Change in cash and cash equivalents for the year 79,929 -1,253,850 39,836 1,204,523 119,397
Cash and cash equivalents 250,580 170,651 1,424,501 1,384,665 180,142
Ratios in %
Cost to income 41.1% 21.3% 5.0% 17.1% 57.0%
Return on capital employed 16.1% 9.1% 60.6% 58.7% 24.3%
Equity ratio 65.7% 64.1% 38.3% 8.5% 27.0%
Average number of employees 551 446 374 338 319
Number of employees end of year 572 487 412 370 355
The ratios have been prepared in accordance with the definitions set out in note 8.5 in the financial statements.
ADJUSTED PERFORMANCE MEASURES
EUR '000 2024 2023 2022 2021 2020
Gross turnover 19,509,510 40,459,738 67,014,434 32,311,321 11,844,042
Adjusted gross profit 242,538 307,636 2,405,560 325,472 96,292
Adjusted EBT 176,047 359,077 2,226,558 248,849 41,363
Adjusted equity 2,155,289 2,784,998 5,751,868 514,299 320,112
Ratios in %
Adjusted cost to income 43.6% 25.7% 4.2% 21.4% 54.0%
Adjusted return on capital employed 13.8% 6.4% 68.0% 42.3% 20.6%
Further explanation of adjusted performance measures is outlined on page 5.
Annual Report 2024 FINANCIAL HIGHLIGHTS 5
ADJUSTED PERFORMANCE MEASURES
Gross turnover, adjusted gross profit and adjusted EBT
are used as alternatives to the financial figures re-
ported in accordance with IFRS Accounting Standards
(as defined in note 8.5). These adjusted performance
measures are used as the primary performance measure
internally in Danske Commodities based on the assess-
ment that adjusted performance measures better reflect
the business performance.
GROSS TURNOVER
Revenue from trading activities is presented net under
IFRS Accounting Standards. To provide readers of the fi-
nancial statements with an insight into Danske Com-
modities’ gross trading and revenue activities, a gross
turnover presentation is included as a part of the ad-
justed performance measures. Gross turnover reflects
sales contracts for physical delivery of non-financial
items consisting of power, gas and certificates, whether
or not it is considered to be a part of trading activities.
The gross turnover amounts to EUR 19,510 million in 2024
compared to the reported trading income and revenue
from contracts with customers of EUR 2,426 million ac-
cording to IFRS Accounting Standards.
The calculation of the adjusted gross profit and ad-
justed EBT is based on the corresponding reported fig-
ures according to IFRS Accounting Standards. These are
adjusted for the three components, market value of gas
storages, market value of gas flow capacities and re-
classification of amortisations.
MARKET VALUE OF GAS STORAGES
IFRS Accounting Standards requires that trading inven-
tories measured at fair value use period-end spot prices.
In the way the Group manages and monitors its stor-
ages, the value will not be realised at the spot price but
at the most favourable forward market price. In the in-
ternal performance measurement reporting Danske
Commodities therefore measures gas storages at an ap-
proximated market value. The market value of the gas
storages is valuated using a storage planning model
with multiple inputs, which are mainly related to stor-
age capacity and physical restrictions from the underly-
ing gas storage contract, forward prices and gas vol-
ume in storage. The difference between the gas storage
market value and the reported gas inventory value is re-
flected in the adjustment to reported gross profit and
reported EBT according to IFRS Accounting Standards.
MARKET VALUE OF GAS FLOW CAPACITIES
Gas flow capacities are considered a part of the trading
portfolio in Danske Commodities on the same terms as
gas forward trades. As Danske Commodities does not
have a practice of net settlement of the gas flow ca-
pacities, IFRS Accounting Standards do not allow gas
flow capacities to be included in the fair value meas-
urement. However, for performance measures in Danske
Commodities, gas flow capacities are fair valued at
their intrinsic value like the gas forward trades that
they can be utilised together with, which is reflected in
the adjustment to reported gross profit and reported EBT
according to IFRS Accounting Standards.
RECLASSIFICATION OF AMORTISATIONS
In 2019 and 2020, Danske Commodities entered into se-
veral PPAs and gas storage contracts which were al-
ready in operation and favourable, given current market
terms. These contracts were recognised as intangible
assets and amortised over the duration of each con-
tract. As the amortisations are considered an important
part of the performance of these contracts, the amorti-
sations are reclassified from the financial statement
line item ‘depreciation and amortisation’ to ‘gross
profit’.
As shown in the tables, reported gross profit amounted
to EUR 276 million in 2024 according to IFRS Accounting
Standards and is adjusted upwards by EUR 16 million in
relation to gas flow capacities and downward by EUR 50
million in relation to gas storages and reclassification
of amortisations, bringing the adjusted gross profit to
EUR 243 million.
Reported EBT is EUR 202 million according to IFRS Ac-
counting Standards and adjusted by the EUR 16 million
flow capacities upward adjustment and EUR 42 million
gas storage downward adjustment, the adjusted EBT is
EUR 176 million.
Adjusted equity is reported equity according to IFRS Ac-
counting Standards adjusted for the accumulated after-
tax income statement effect of the gas flow capacity
and gas storage adjustment specified in the table
above. With reported equity of EUR 2,186 million in 2024
according to IFRS Accounting Standards, an accumu-
lated gas flow capacity and gas storage adjustment of
EUR 39 million minus 22% tax, the adjustment amounts
to EUR 31 million and an adjusted equity of EUR 2,155
million.
REPORTED FIGURES VS. ADJUSTED PERFORMANCE MEASURES
2024
EURm
As
reported
Reclas-
sification
Gas
storage
Gas flow
capacities
Adjusted
Gross profit 276.2 -7.7 -42.0 16.0 242.5
Other operating
income
7.8 7.8
External expenses -26.9 -26.9
Staff costs -81.3 -81.3
Amortisations -13.1 7.7 -5.4
EBIT 162.7 0.0 -42.0 16.0 136.7
Net financials 39.4 39.4
EBT 202.1 0.0 -42.0 16.0 176.1
2023
EURm
As
reported
Reclas-
sification
Gas
storage
Gas flow
capacities
Adjusted
Gross profit 410.1 -8.3 -194.1 100.0 307.7
Other operating
income
0.1 0.1
External expenses -13.0 -13.0
Staff costs -62.4 -62.4
Amortisations -12.0 8.3 -3.7
EBIT 322.8 0.0 -194.1 100.0 228.7
Net financials 130.4 130.4
EBT 453.2 0.0 -194.1 100.0 359.1
Annual Report 2024 STATUTORY REPORTING ON CORPORATE GOVERNANCE 6
Annual Report 2024 STATUTORY REPORTING ON CORPORATE GOVERNANCE 7
CORPORATE SOCIAL RESPONSIBILITY – CONTINUED
Annual Report 2024 STATUTORY REPORTING ON CORPORATE GOVERNANCE 8
CORPORATE SOCIAL RESPONSIBILITY – CONTINUED
Annual Report 2024 STATUTORY REPORTING ON CORPORATE GOVERNANCE 9
Annual Report 2024 RISK MANAGEMENT 10
RISK MANAGEMENT
MARKET RISK
Market risk is the risk of the value of open positions
changing as a result of fluctuating market conditions.
Danske Commodities’ market risk arises in both com-
modity and financial markets with fluctuating energy
prices, production and consumption balancing and for-
eign exchange rates constituting key risk factors. Due to
the potential impact on the Group’s earnings, Danske
Commodities continuously monitors and stress tests
volatility and commodity price developments.
Market risk is governed by the framework outlined in the
Market Risk Policy and Market Risk Manual. The Market
Risk Policy establishes permissible products, regions,
and commodities, while the Market Risk Manual speci-
fies detailed mandates within the overarching market
risk appetite. Danske Commodities’ market risk appetite
defines the overall risk limits, determined by allocated
risk capital, ensuring that the aggregation of individual
mandates remains within these boundaries. This frame-
work enables continuous monitoring of the Group’s risk
profile. Open positions are permitted only within estab-
lished mandates, and all trading positions are inde-
pendently monitored by the Risk Management team as
the second line of defence.
All mandates across the business are subject to regular
review and updates to ensure alignment with the de-
fined risk appetite and adaptability to evolving market
conditions. As part of the oversight framework, Danske
Commodities employs tiered warning levels and stop-
loss thresholds to facilitate prompt intervention in case
of mandate breaches. Robust risk management prac-
tices include structured product controls, model valida-
tions, and enhanced stress testing, complemented by
additional risk measures, ensuring comprehensive over-
sight of relevant products and activities.
Foreign exchange risk, to which the daily commercial
business is exposed, is mitigated and hedged on a daily
basis. As foreign exchange risk is not a core business for
Danske Commodities, a hedging strategy anchored in
the Treasury team is pursued to mitigate the foreign ex-
change risk. Hence, currency risk is an insignificant
component of the overall risk appetite at Danske Com-
modities.
CREDIT RISK
Credit risk is the risk of financial loss resulting from a
counterparty failing to meet contractual obligations.
Danske Commodities manages credit risk through a
clearly defined framework of policies and procedures
approved by the Board of Directors and defined by the
Risk Management team.
The financial strength and creditworthiness of a poten-
tial counterparty is assessed before the Group enters
any contract and subsequently the allowed credit line is
monitored daily. If required, security is requested before
or during the contract lifespan.
Thorough Know Your Customer (KYC) and sanctions
screening processes are performed according to the
agreed policy. The KYC process is reviewed regularly,
and sanctions screening is done on a continual basis.
OPERATIONAL AND IT RISK
Danske Commodities is exposed to operational and IT
risks with possible impact on license to operate or fi-
nancial losses. Operational and IT risks can broadly be
defined as risks of inadequate or failed internal pro-
cesses, human errors, system failures or from external
events.
Danske Commodities continues to enhance its organisa-
tional and technical measures to ensure secure and re-
silient operations. Additionally, IT risk management is
matured to be an integral part of the Group’s efforts to
reduce the overall risk exposure.
Organisational measures
Strong crisis management and business continuity
frameworks are maintained, regularly updated and
tested on both a monthly and biannual basis across
critical functions. These efforts are actively supported
by IT to ensure operational readiness. To reinforce a cul-
ture of security, all employees are required to review
and acknowledge the standard for acceptable use of IT
in Danske Commodities, with annual cybersecurity
training mandated for all staff.
Technical measures
Internal security capabilities are continuously im-
proved to prevent IT security incidents, detect potential
threats, and respond promptly to events. This is
achieved through the efforts of in-house IT security en-
gineers, complemented by a robust external 24/7 Secu-
rity Operations Centre (SOC) that includes an incident
response retainer. Danske Commodities’ services are de-
livered through multiple data centres, ensuring redun-
dancy and operational reliability.
Compliance and Oversight
The Danish Energy Agency conducts an annual evalua-
tion of DC's crisis management and business continuity
planning, alongside its obligations as a balancing re-
sponsible party in the energy market. Additionally,
Danske Commodities adheres to the requirements of the
SWIFT security framework as well as SOX with regards
to the Equinor Group reporting.
Annual Report 2024 RISK MANAGEMENT 11
RISK MANAGEMENT – CONTINUED
LIQUIDITY RISK
Liquidity risk is the risk of Danske Commodities not be-
ing able to meet its liabilities towards counterparties.
Danske Commodities is considered to have low liquidity
risk, being under the ownership of Equinor and given its
solid capital structure. Cash flows from operations,
cash reserves, capital injections and credit facilities
are key aspects that for several years have ensured sta-
ble and adequate liquidity.
Danske Commodities measures its overall liquidity, con-
sisting of free liquidity, including cash collateral, other
deposits and forecasted cash flows, on a daily basis. In
addition, different liquidity outcomes are simulated
through various stress tests. The stress testing process
estimates expected daily and monthly margin calls and
is used in the calculation of a minimum liquidity level,
enabling the Group to better manage liquidity reserves
and withstand market movements at all times.
LEGAL RISK
Contractual relationships with counterparties and busi-
ness partners bear the potential for legal risks.
Danske Commodities’ Legal team is focused on proac-
tive legal work and contributes in a structured way to
identifying, prioritising and managing legal risks and
opportunities in consultation with teams across the en-
tire organisation.
The Group has established a cross functional Market De-
sign Working group. This group supports the business on
new legislation and follows the market situation in
cases of energy crisis and changes in the geopolitical
situation.
The Legal team engages in the ongoing business activi-
ties and decision-making processes at an early stage
and takes part in the approval process for new products.
By drafting and negotiating well-balanced contracts in
accordance with the legal risk tolerance defined by the
Board of Directors in line with local legislation and
practice in the markets in which Danske Commodities
operates, the Group conducts risk assessment on an on-
going basis. As such, the overall level of claims and dis-
putes can be held at a minimum. The legal counsels of
Danske Commodities work closely with professional ex-
ternal advisers when expert knowledge is required.
COMPLIANCE RISK
Compliance risk is the risk posed to Danske Commodi-
ties’ financial, organisational, operational or reputa-
tional standing that could result from a failure to act in
accordance with relevant laws, regulations and pre-
scribed standards.
High ethical standards and compliance with relevant
laws and regulations are fundamental to Danske Com-
modities. Danske Commodities’ Compliance Programme
sets out the framework for operating the Company’s ac-
tivities in an ethical and compliant manner and ensures
that compliance is embedded with all employees and
throughout the organisation, creating a strong culture
of compliance.
The Compliance Programme focuses on preventing, de-
tecting, and handling non-compliant behaviour and is
managed by the Compliance Officer.
Danske Commodities’ policies, standards, procedures
and Code of Conduct are the foundation for the Compli-
ance Programme as they lay out the requirements and
expectations of the Group’s employees and they apply
to all employees. Annual compliance risk assessments
are another important part of the Compliance Pro-
gramme.
Training and education also play a vital role in the
Compliance Programme, ensuring that Danske Commo-
dities’ employees are regularly provided with up-to-date
information and knowledge of compliance issues. Fur-
ther, relevant employees also take part in face-to-face
training sessions conducted by the Compliance team. In
2024, these training sessions related to the market
abuse prohibitions that apply to many of the jurisdic-
tions that Danske Commodities operates in.
Monitoring and trade surveillance are also important
parts of the Compliance Programme and ensure compli-
ance with relevant regulations and allow Danske Com-
modities to monitor that its activities are carried out in
a compliant manner.
In 2024, the compliance function has focused on the im-
plementation of the requirements related to REMIT II
and EMIR ReFIT.
Oversight of the Compliance Programme is ensured
through regular reporting to Senior Leadership, the Risk
Committee, and the Board of Directors.
Annual Report 2024 MANAGEMENT’S STATEMENT 12
MANAGEMENT’S STATEMENT ON THE ANNUAL REPORT
Executive Board
Board of Directors
Annual Report 2024 INDEPENDENT AUDITOR’S REPORT 13
INDEPENDENT AUDITOR’S REPORT
Annual Report 2024 INDEPENDENT AUDITOR’S REPORT 14
INDEPENDENT AUDITOR’S REPORT – CONTINUED
CVR no. 30 70 02 2 8
Annual Report 2024 STATEMENT OF COMPREHENSIVE INCOME 15
STATEMENT OF COMPREHENSIVE INCOME
1 JANUARY – 31 DECEMBER
INCOME STATEMENT
Group Parent
EUR '000 Note 2024 2023 2024 2023
Trading income and revenue from contracts with
customers
2.1 2,425,514 3,070,581 2,425,209 3,046,453
Cost of sales 2.1 -2,149,275 -2,660,478 -2,148,477 -2,660,358
Gross profit 276,239 410,103 276,732 386,095
Other operating income 7,754 146 9,613 145
Other external expenses 4.1 -26,925 -13,064 -27,017 -13,086
Staff costs 4.1 -81,331 -62,404 -77,239 -57,607
6.1, 6.2 -13,067 -12,014 -12,875 -11,925
Operating profit (EBIT) 162,670 322,767 169,214 303,622
Share of profit in subsidiaries after tax 6.4 0 0 -4,776 16,885
Financial income 4.3 76,950 184,513 71,393 181,215
Financial expenses 4.3 -37,590 -54,081 -35,737 -53,457
Profit before tax (EBT) 202,030 453,199 200,094 448,265
Tax on profit for the year 7.1 -52,727 -96,079 -50,791 -91,145
Profit for the year 149,303 357,120 149,303 357,120
STATEMENT OF OTHER COMPREHENSIVE INCOME
Group Parent
EUR '000 2024 2023 2024 2023
Profit for the year 149,303 357,120 149,303 357,120
Items that may subsequently be reclassified to the income statement:
Exchange rate adjustment on translation of foreign operations -8,745 -573 -8,745 -573
Other comprehensive income (net of tax) -8,745 -573 -8,745 -573
Total comprehensive income (net of tax) 140,558 356,547 140,558 356,547
Amortisation, depreciation and impairment losses
of intangible assets and property, plant and equipment
Annual Report 2024 BALANCE SHEET 16
BALANCE SHEET
AT 31 DECEMBER
ASSETS
Group Parent
EUR '000 Note 2024 2023 2024 2023
Contractual rights 50,535 58,254 50,535 58,254
Software 12,806 11,622 12,738 11,622
Intangible assets 6.1 63,341 69,876 63,273 69,876
Other fixtures and fittings, tools and equipment 3,121 3,463 3,022 3,337
Right-of-use assets 1,808 3,159 731 1,777
Leasehold improvements 128 199 0 7
Property, plant and equipment 6.2 5,057 6,821 3,753 5,121
Investments in subsidiaries 6.4 0 0 75,859 130,406
Deferred tax 7.2 10,338 14,376 10,107 14,376
Deposits 1,333 424 1,327 419
Other non-current assets 11,671 14,800 87,293 145,201
Non-current assets 80,069 91,497 154,319 220,198
Inventories 5.1 396,695 766,711 396,695 766,711
Trade receivables 5.2 770,352 693,361 769,029 690,087
Other receivables 5.3 55,648 45,407 26,345 34,503
Deposits related to trading 5.5 44,717 46,288 44,398 45,081
Receivables from group enterprises 4.2 1,379,725 1,532,700 1,421,485 1,550,581
Corporation tax receivables 7.2 1,296 1,730 0 0
Prepayments 19,253 8,348 19,253 5,346
Derivative financial instruments 3.5 280,812 950,043 254,108 945,836
Current asset investments 6.5 45,826 54,001 0 0
Cash and cash equivalents 5.8 250,580 170,651 209,233 94,560
Current assets 3,244,904 4,269,240 3,140,546 4,132,705
Assets 3,324,973 4,360,737 3,294,865 4,352,903
Annual Report 2024 BALANCE SHEET 17
BALANCE SHEET
AT 31 DECEMBER
LIABILITIES AND EQUITY
Group Parent
EUR '000 Note 2024 2023 2024 2023
Share capital 175,000 175,000 175,000 175,000
Share premium 1,750,000 1,750,000 1,750,000 1,750,000
Reserve for currency translation -12,683 -3,938 0 0
Reserve for net revaluation under the equity method 0 0 0 58,738
Reserve for development costs 0 0 9,656 8,956
Proposed dividend 4.4 150,000 750,000 150,000 750,000
Retained earnings 123,259 123,956 100,920 52,324
Equity 2,185,576 2,795,018 2,185,576 2,795,018
Deferred tax liabilities 7.2 0 105 0 0
Provisions 5.6 98 293 98 293
Lease liabilites 6.3 1,193 2,058 84 676
Non-current liabilities 1,291 2,456 182 969
Trade payables 5.7 476,389 411,813 474,443 409,121
Payables to group enterprises 4.2 103,939 217,743 107,967 226,436
Corporation tax payables 7.2 6,910 38,812 6,313 37,960
Provisions 5.6 8,686 1,628 8,686 1,628
Other payables 5.4 27,387 30,303 23,441 25,356
Deposits related to trading 5.5 157,750 294,660 157,750 294,660
Prepayments 3,802 4,508 3,801 1,672
Derivative financial instruments 3.5 352,445 562,465 325,999 558,845
Lease liabilities 6.3 798 1,331 707 1,238
Current liabilities 1,138,106 1,563,263 1,109,107 1,556,916
Liabilities 1,139,397 1,565,719 1,109,289 1,557,885
Liabilities and equity 3,324,973 4,360,737 3,294,865 4,352,903
Annual Report 2024 STATEMENT OF CHANGES IN EQUITY 18
STATEMENT OF CHANGES IN EQUITY
2024 Group
EUR '000 Share capital Share premium
Reserve for currency
translation
Proposed
dividend
Retained
earnings
Total
Equity at 1 January 175,000 1,750,000 -3,938 750,000 123,956 2,795,018
Net profit for the year 0 0 0 0 149,303 149,303
Other comprehensive income for the year 0 0 -8,745 0 0 -8,745
Total comprehensive income for the year 0 0 -8,745 0 149,303 140,558
Proposed capital distribution 0 0 0 150,000 -150,000 0
Dividend paid 0 0 0 -750,000 0 -750,000
Equity at 31 December 175,000 1,750,000 -12,683 150,000 123,259 2,185,576
2023 Group
EUR '000 Share capital Share premium
Reserve for currency
translation
Proposed
dividend
Retained
earnings
Total
Equity at 1 January 3,679,762 0 -3,365 0 1,923,487 5,599,884
Restatement effect in prior year 0 0 0 0 88,588 88,588
Restated equity at 1 Janaury 3,679,762 0 -3,365 0 2,012,075 5,688,472
Net profit for the year as restated 0 0 0 0 357,120 357,120
Other comprehensive income for the year 0 0 -573 0 0 -573
Total comprehensive income for the year 0 0 -573 0 357,120 356,547
Capital decrease -3,679,762 0 0 0 0 -3,679,762
Capital increase 175,000 1,750,000 0 0 0 1,925,000
Proposted capital distribution 0 0 0 750,000 -750,000 0
Dividend paid 0 0 0 0 -1,495,239 -1,495,239
Equity at 31 December 175,000 1,750,000 -3,938 750,000 123,956 2,795,018
Annual Report 2024 STATEMENT OF CHANGES IN EQUITY 19
STATEMENT OF CHANGES IN EQUITY – CONTINUED
2024 Parent
EUR '000 Share capital Share premium
Reserve for net
revaluation under
the equity method
Reserve for
development
costs
Proposed
dividend
Retained
earnings
Total
Equity at 1 January 175,000 1,750,000 58,738 8,956 750,000 52,324 2,795,018
Net profit for the year 0 0 -4,776 0 0 154,079 149,303
Development costs for the year 0 0 0 700 0 -700 0
Other adjustments 0 0 -45,217 0 0 45,217 0
Other comprehensive income for the year 0 0 -8,745 0 0 0 -8,745
Total comprehensive income for the year 0 0 -58,738 700 0 198,596 140,558
Proposed capital distribution 0 0 0 0 150,000 -150,000 0
Dividend paid 0 0 0 0 -750,000 0 -750,000
Equity at 31 December 175,000 1,750,000 0 9,656 150,000 100,920 2,185,576
2023 Parent
EUR '000 Share capital Share premium
Reserve for net
revaluation under
the equity method
Reserve for
development
costs
Proposed
dividend
Retained
earnings
Total
Equity at 1 January 3,679,762 0 72,608 6,375 0 1,841,139 5,599,884
Restatement effect in prior year 0 0 0 0 0 88,588 88,588
Restated equity at 1 Janaury 3,679,762 0 72,608 6,375 0 1,929,727 5,688,472
Net profit for the year 0 0 16,885 0 0 340,235 357,120
Development costs for the year 0 0 0 2,581 0 -2,581 0
Other adjustments 0 0 -30,182 0 0 30,182 0
Other comprehensive income for the year 0 0 -573 0 0 0 -573
Total comprehensive income for the year 0 0 -13,870 2,581 0 367,836 356,547
Capital decrease -3,679,762 0 0 0 0 0 -3,679,762
Capital increase 175,000 1,750,000 0 0 0 1,925,000
Proposed capital distribution 0 0 0 0 750,000 -750,000 0
Dividend paid 0 0 0 0 0 -1,495,239 -1,495,239
Equity at 31 December 175,000 1,750,000 58,738 8,956 750,000 52,324 2,795,018
The share capital consists of 175,000,000 shares of a nominal value of EUR 1 per share. All shares rank equally.
The share premium amounts to EUR 1,750,000,000 in total, and the shares were subscribed for at a subscription rate of 1,100. The amount is equal to the
excess capital that has been paid in at the rate of subscription. The amount has been presented as a separate reserve under equity and can be used for
capital distribution to the equity holder of the parent.
Annual Report 2024 STATEMENT OF CASH FLOWS 20
STATEMENT OF CASH FLOWS
Group Parent
EUR '000 Note 2024 2023 2024 2023
Profit for the year 149,303 357,120 149,303 357,120
Non-cash adjustments 5.8 17,958 -22,894 32,786 -41,563
Change in working capital 5.8 709,574 3,135,507 697,842 3,088,605
Cash flow from operating activities before
financial income and expenses
Financial income, received 4.3 76,950 184,513 71,393 181,215
Financial expenses, paid 4.3 -36,246 -50,543 -35,942 -49,735
Cash flow from ordinary activities 917,539 3,603,703 915,382 3,535,642
Corporation tax paid -85,069 -55,287 -82,976 -47,041
Corporation tax received 4,807 20,548 4,807 20,237
Cash flow from operating activities 837,277 3,568,964 837,213 3,508,838
Purchase of intangible assets 6.1 -3,658 -4,598 -3,589 -4,598
Purchase of property, plant and equipment 6.2 -1,379 -2,590 -1,315 -839
Capital increase in subsidiaries 6.4 0 0 -6,000 -62,387
Dividends received 0 0 47,026 30,173
Disposal of subsidiaries 0 0 0 9
Placement in time deposits -45,826 -54,001 0 0
Cash released from time deposits 54,001 0 0 0
Cash flow from investing activities 3,138 -61,189 36,122 -37,642
Proceeds from borrowings -1,398 1,993 -1,123 457
Repayment of borrowings 0 -3,014,636 0 -3,014,636
Movement in group enterprise cash pool -7,744 1,506,179 -7,744 1,506,179
Capital increase 0 1,925,000 0 1,925,000
Capital decrease 0 -3,679,762 0 -3,679,762
Dividend payment -750,000 -1,495,239 -750,000 -1,495,239
Payment of principal portion of lease liabilities 0 -1,622 0 -1,561
Cash flow from financing activities -759,142 -4,758,087 -758,867 -4,759,562
Net foreign exchange difference on cash and
cash equivalents
-1,344 -3,538 205 -3,722
Change in cash and cash equivalents 79,929 -1,253,850 114,673 -1,292,088
Cash and cash equivalents at 1 January 170,651 1,424,501 94,560 1,386,648
Cash and cash equivalents at 31 December 250,580 170,651 209,233 94,560
Cash and cash equivalents are specified as follows:
Cash at bank and in hand without restrictions 240,540 164,676 205,835 91,044
Restricted cash * 10,040 5,975 3,398 3,516
Cash and cash equivalents at 31 December 250,580 170,651 209,233 94,560
* Restricted cash is relating to initial margin coverage held at clearing banks.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 21
NOTES TO FINANCIAL STATEMENTS
BASIS OF REPORTING
1.1 BASIS OF PREPARATION
The consolidated and parent financial statements have
been prepared in accordance with International Finan-
cial Reporting Standards (IFRS Accounting Standards, as
defined in note 8.5) as adopted by the EU and further re-
quirements in the Danish Financial Statements Act ap-
plying to large enterprises of reporting class C.
The consolidated and parent financial statements have
been prepared on a going concern basis and under the
historical cost convention, with the exception of deriva-
tives and gas trading inventories, which are measured
at fair value as disclosed in notes 3.5, 3.6 and 5.1 and
with the exception of investments in subsidiaries, which
are measured under the equity method as disclosed in
note 6.4.
The consolidated financial statements are presented in
euros, which is also the Parent Company’s functional
currency. All values are rounded to the nearest thousand
(EUR’000), except if otherwise indicated.
Accounting policies related to specific line items are
described in the notes to which they relate. The descrip-
tion of accounting policies in the notes form part of the
overall description of accounting policies. Accounting
policies not directly related to a specific line item co-
vered by a note are presented below.
BASIS FOR CONSOLIDATION
The consolidated financial statements incorporate the
financial information of Danske Commodities A/S, the
Parent Company, and its subsidiaries, together the
Group. Control is achieved where the Group is exposed,
or has rights, to variable returns from its involvement
with an entity and has the ability to affect those returns
through its power over the entity.
The consolidated financial statements are prepared by
combining items of a uniform nature and subsequently
eliminating intercompany transactions and balances
and unrealised intercompany profits and losses.
TRANSLATION OF FOREIGN CURRENCIES
Transactions in foreign currencies are translated at the
exchange rates prevailing at the dates of transaction.
Gains and losses arising due to differences between the
transaction date rates and the rates at the dates of pay-
ment are recognised in financial income or financial ex-
penses in the income statement.
Receivables, payables and other monetary items in for-
eign currencies that have not been settled at the ba-
lance sheet date are translated at the exchange rates
at the balance sheet date. Any differences between the
exchange rates at the balance sheet date and the trans-
action date rates are recognised in financial income
and expenses in the income statement.
Foreign subsidiaries are considered separate entities.
The income statements are translated at the average
exchange rate for the period, and the balance sheet
items are translated at the exchange rates at the ba-
lance sheet date.
Foreign exchange differences arising on translation of
the opening equity of foreign entities at the exchange
rates at the balance sheet date and on translation of
the income statements from average exchange rates to
the exchange rates at the balance sheet date are recog-
nised in other comprehensive income.
CURRENT / NON-CURRENT
The Group presents assets and liabilities in the state-
ment of financial position based on current/non-current
classification. An asset is current when it is:
• expected to be realised or intended to be sold
or consumed in the normal operating cycle
• held primarily for the purpose of trading
• expected to be realised within twelve months
after the reporting period
• cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for
at least twelve months after the reporting pe-
riod
All other assets are classified as non-current.
A liability is current when it is:
• expected to be settled in the normal operating
cycle
• held primarily for the purpose of trading
• due to be settled within twelve months after
the reporting period
• without unconditional right to defer the settle-
ment of the liability for at least twelve months
after the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-
current assets and liabilities.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 22
1.2 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Group’s consolidated and parent
financial statements requires management to make es-
timates and assumptions that can have a significant ef-
fect on the application of policies and reported
amounts of assets, liabilities, income, expenses and re-
lated disclosures.
ESTIMATES
The estimates and underlying assumptions are based on
historical experience and various other factors. Actual
results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing
basis. Changes in estimates may be necessary if there
are changes in the circumstances on which the estimate
was based or more detailed information becomes avail-
able. Such changes are recognised in the period in
which the estimate is revised.
Estimates used in the preparation of these consolidated
financial statements are prepared based on customised
models, while the assumptions on which the estimates
are based rely on historical experience, external sources
of information and various other factors that manage-
ment assesses to be reasonable under the current condi-
tions and circumstances. These estimates and assump-
tions form the basis of the carrying values of assets and
liabilities when these are not readily apparent from
other sources. Actual results may differ from these esti-
mates. The estimates and underlying assumptions are
reviewed on an on-going basis considering the current
and expected future set of conditions.
The most important matters in understanding the key
sources of estimation uncertainty are described in note
3.6 Fair value measurements.
JUDGEMENTS
The main areas where the Group has made significant
judgements when applying the accounting policies and
that have the most material effect on the amounts pre-
sented in the consolidated financial statements have
been described in the following notes:
• 2.1 Trading income and revenue from contracts
with customers
EARNINGS
2.1 TRADING INCOME AND REVENUE FROM CONTRACTS WITH CUSTOMERS
SIGNIFICANT ACCOUNTING JUDGEMENTS
The Group has contracts for the purchase of power with
physical delivery and pay-as-produced features (power
purchase agreements). The Group applies judgement in
assessing whether the contracts are in scope of IFRS 15.
Judgement is applied in assessing the performance ob-
ligations in the contracts and the nature of the busi-
ness.
The Group follows current industry practice for these
types of contracts, ensuring that the accounting meth-
ods align with established standards and practices
within the energy sector. Furthermore, amendments to
IFRS 9 are being implemented as per note 8.3, which will
be considered in the ongoing assessment to ensure com-
pliance with the latest regulatory requirements and
standards.
Whether to account for transactions from contracts with
customers gross or net under IFRS 15 involves the use of
significant accounting judgement. In making the judge-
ment the Group has considered whether it controls the
power volumes prior to onwards sales to the counter-
party. When the Group directs the use of the volumes,
holds the balancing risk and the Group receives all ben-
efits from the sales of power, the Group is considered
the principal in the sale of power and energy-related
services, why the revenue is presented gross.
For some contracts, the Group has concluded that ow-
nership of the power volumes has not been transferred
to the Group. Although the Group has been granted the
ability to direct the use of the volumes, the asset owner
receives all the benefits from the sales of these volumes
and holds the related balancing risk, since the Group
only acts as an intermediary between the asset owner
and the market. On that basis, the Group is not consid-
ered the principal in the sale of these power and energy
related services, why the revenue and related cost of
sales is presented net.
Group Parent
EUR '000 2024 2023 2024 2023
Trading income
Net trading income 773,018 313,707 771,024 288,188
Net change in fair value of commodity derivatives held for trading
-811,466 -871,816 -809,777 -870,425
Net change in fair value of inventory held for trading 248,751 904,205 248,751 904,205
Revenue from contracts with customers
Sales of climate certificates 502,443 771,668 502,443 771,668
Sales of power and energy-related services 1,712,768 1,952,817 1,712,768 1,952,817
Total trading income and revenue from contracts with customers 2,425,514 3,070,581 2,425,209 3,046,453
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 23
2.1 TRADING INCOME AND REVENUE FROM CONTRACTS WITH CUSTOMERS – CONTINUED
ACCOUNTING POLICIES
Trading income
Trading income comprises realised and unrealised fair
value changes as well as realised gains and losses on
commodity derivatives and inventory held for trading.
Net trading income comprises net realised fair value
changes, gains and losses arising from trading within
energy commodity derivatives. The energy commodity
derivatives make up the Group’s trading portfolio which
includes futures, options, swaps, power transport ca-
pacities and certain forward sales and forward pur-
chases commodity contracts that are either financially
or physically settled. As the physically settled con-
tracts are managed on a portfolio basis, a practice of
net settlement is present, and the contracts are consi-
dered in scope of IFRS 9 and treated as derivatives.
Net changes in fair value of commodity derivatives and
net changes in fair value of inventory held for trading
represents changes in the unrealised part of fair value
of commodity derivatives held for trading and inventory
held for trading at the balance sheet date.
Revenue from contracts with customers
Revenue is measured at the contractually agreed price
exclusive of VAT and taxes charged on behalf of third
parties.
Sales agreements are divided into individually identifia-
ble performance obligations when applicable. If a sales
agreement includes several performance obligations,
the sales agreement’s transaction price is allocated to
each performance obligation.
The sales agreements are transacted under EFET terms
and typically settled within 20-30 days from delivery.
Sales of power and energy-related services
Revenue from the sale of power and energy-related ser-
vices comprises consumption balancing as well as the
sale of power sourced from energy producers and re-
lated services in terms of e.g. production management
and balancing. The Group considers whether it is acting
as principal or agent, based on whether it holds the
main risks and controls the power and services deli-
vered before transferring it to the counterparty. Revenue
is recognised when control of the power is transferred to
the buyer simultaneously with fulfilment of the related
services, that being when the power is delivered. Agree-
ments for the sale of power and energy-related services
are considered a series of identical goods and services
that are transferred over time and revenue is recognised
at the amount to which the Group is entitled.
Sales of climate certificates
Revenue from the sale of climate certificates comprises
the sale of climate certificates sourced from producers.
As the Group controls the climate certificates before
transferring them to the counterparty, the Group has
concluded that it is acting as principal in these agree-
ments. Revenue is recognised when control of the cli-
mate certificate is transferred to the buyer being when
the certificate is delivered to the buyer. Agreements for
the sale of climate certificates are fulfilled at a point
in time.
Cost of sales
Cost of sales includes the purchase of power and certi-
ficates for resale and transportation thereof incurred to
achieve revenue from contracts with customers for the
year.
RISK MANAGEMENT
3.1 MARKET RISK
Danske Commodities’ market risk arises in both com-
modity and financial markets, in which changing com-
modity prices and volumes are key risk factors.
The sensitivity analysis in the following sections relates
to open positions at 31 December 2024 and 31 December
2023. The sensitivity is calculated by adjusting the mar-
ket price used on each individual trade.
The sensitivity shown is based on reasonably possible
changes in the current observable market environment.
The effect of the assumed changes in respective market
risks is prepared on an ‘all else being equal’ basis. The
analysis is based on the financial assets and financial
liabilities held at 31 December 2024 and 31 December
2023.
Danske Commodities’ business is focused on short-term
trading, which is reflected in the maturity of the finan-
cial instruments that primarily fall due within 12
months. For more information, refer to note 3.3.
RISK MANAGEMENT PROCEDURES
Danske Commodities’ Board of Directors has developed
and enacted a risk management strategy for commodity
price risk and its mitigation. The risk management stra-
tegy also includes limits on foreign currency exposure.
COMMODITY PRICE RISK
Commodity price risk is the risk that the fair value or fu-
ture cash flows of an exposure will fluctuate because of
changes in underlying commodity prices. The Group’s ex-
posure to the risk of changes in commodity prices re-
lates primarily to the trading performed at Danske Com-
modities.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 24
3.1 MARKET RISK – CONTINUED
FOREIGN CURRENCY RISK
Foreign currency risk is the risk that the fair value or fu-
ture cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. Danske Commodi-
ties’ exposure to the risk of changes in foreign exchange
rates derives primarily from those of the Group’s opera-
ting activities in which trade receivables, accounts pay-
ables and derivatives held for trading are denominated
in a currency other than the functional currency.
The foreign currency risk is mitigated and hedged via
economic hedges by the Treasury function on a daily ba-
sis in accordance with the mandates, policies and hed-
ging strategy approved by the Board of Directors.
The risk relates to a wide range of currencies to which
the daily commercial business is exposed. The main un-
derlying currency of the Group’s cash flow is Euro as the
majority of Danske Commodities’ activities are per-
formed in market areas where commodity products are
priced in EUR.
Next to EUR, GBP is the most significant currency to
which Danske Commodities is exposed. The analysis
shows the profit and loss effect from movements in the
GBP/EUR ratio with all other variables held constant.
The assumed percentage is based on what is found to be
a reasonable probable change within a 12-month time
frame.
INTEREST RATE RISK
Interest rate risk is the risk that the future cash flows of
a financial instrument will fluctuate because of change
in market interest rates. Danske Commodities’ exposure
to the risk of changes in market interest rates relates
primarily to interest-bearing floating rate liabilities
and assets. The estimated effect is considering an ef-
fect of one year in profit and loss.
The table is calculated on an ‘all else being equal’ ba-
sis. The sensitivity calculation does not account for the
correlation between products. For some products, the
value is affected by multiple commodities.
3.2 CREDIT RISK MANAGEMENT
Exposure to credit risk may arise in Danske Commodi-
ties’ trading and treasury operations. Exposure can be
split into exchange and OTC. OTC trading is generally
performed under standard agreements such as EFET and
ISDA, which feature netting provisions. The Group ma-
nages credit risk through a clear framework of policies
and procedures defined by the Board of Directors, Senior
Leadership and the Risk Management function. Respon-
sibilities are divided between different business teams,
Risk Management, Senior Leadership and the Board of
Directors. A thorough KYC process is carried out for all
counterparties with whom the Group engages in trans-
actions.
As commodity exchanges generally require variation
margin settlement equal to the fair value, the Group
considers its credit exposure to commodity exchanges
to be insignificant. The margin is handled through clear-
ing banks, which are trusted to ensure a safe process for
all parties.
The credit risk affecting the derivative financial instru-
ments measured at fair value is considered limited
based on the individual counterparty’s ratings with pub-
lic rating agencies. Danske Commodities sets a credit
risk appetite for all counterparties directly dependent
on their credit worthiness. In addition to this, the Group
accepts collateral in the form of cash deposits, prepay-
ment and guarantees to mitigate credit risk. This can al-
low for trading to continue with e.g. CSA counterparties
when the agreed threshold for credit exposure is
reached.
Group Parent
SENSITIVITY 2024 2023 2024 2023
EUR '000 +/- in %
30% -72,805 -205,998 -72,805 -205,998
Gas price risk (financial instruments) -30% 125,512 252,334 125,512 252,334
30% 112,859 219,785 112,859 219,785
Gas price risk (inventory) -30% -112,859 -219,785 -112,859 -219,785
30% -36,688 15,587 -3,752 10,798
Power price risk -30% 100,604 56,709 67,667 61,521
30% 5,560 4,748 5,560 4,748
Certificate price risk -30% -2,725 2,802 -2,725 2,802
5 % (2023: 6%) -14,121 -7,166 -14,124 -7,571
EUR/GBP currency risk -5 % (2023: -6%) 14,121 7,166 14,124 7,571
1% 1,210 2,519 1,210 2,519
Interest rate risk -1% -1,210 -2,519 -1,210 -2,519
Effect on profit
before tax
Effect on profit
before tax
Effect on profit
before tax
Effect on profit
before tax
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 25
3.2 CREDIT RISK MANAGEMENT – CONTINUED
The majority of the Group’s financial instruments are to-
wards counterparties rated AA, for which the credit risk
is considered low.
Credit risk from the Company’s financial assets prima-
rily concerns derivatives, trade receivables and receiva-
bles from group enterprises. For more information of
credit risk related to receivables, refer to note 5.2.
3.3 LIQUIDITY RISK
Liquidity management is executed on an ongoing daily
basis in Danske Commodities’ Treasury function. Daily
cash flow forecasts are produced, ensuring availability
of required liquidity of the Group by appropriate cash
management, and maintaining adequate liquidity re-
serves at any time through a combination of readily
available cash and committed credit facilities provided
by Equinor ASA.
The table below shows Danske Commodities’ financial
liabilities divided into relevant maturity buckets based
on their contractual maturities for all financial liabili-
ties and derivative financial instruments. The amounts
disclosed in the table are the contractual undiscounted
cash flows.
The Group and Parent Company’s committed credit fa-
cilities provided by Equinor ASA comprise a revolving
credit facility and a cash pool overdraft.
The revolving credit facility amounted to EUR 500 mil-
lion at 31 December 2024 (2023: EUR 500 million) and
terminates in 2026. At 31 December 2024, the cash pool
arrangement with Equinor ASA has an overdraft limit of
EUR 3,000 million, (2023: EUR 3,000 million). The revolv-
ing credit facility and the cash pool overdraft ensures
liquidity for the years to come.
As per 31 December 2024, the Group has drawn EUR 0
million (2023: EUR 0 million) of the total available facil-
ities in the amount of EUR 3,500 million (2023: EUR 3,500
million).
For overview of available cash comprising ‘cash and
cash equivalents’ and ‘group cash pool’ refer to note 3.4.
CREDIT QUALITY OF THE GROUP'S COUNTERPARTIES
Group Parent
EUR '000 2024 2023 2024 2023
AA rating 1,796,178 2,192,866 1,709,008 2,087,079
A rating 370,903 375,191 369,822 363,459
BBB rating 298,613 680,639 288,924 679,408
BB rating and lower 187,561 85,532 173,244 82,556
Not rated 140,402 118,129 158,582 116,863
Total at 31 December 2,793,657 3,452,357 2,699,580 3,329,365
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
Group Parent
EUR '000 2024 2023 2024 2023
Financial instruments, maturity <1 year
Trade payables 476,389 411,813 474,443 409,121
Lease liabilities 798 1,331 707 1,238
Payables to group enterprises 103,939 217,743 107,967 226,436
Deposits related to trading 157,750 294,660 157,750 294,660
Other payables 27,328 28,565 23,441 25,356
Financial instruments, maturity 1-5 years
Lease liabilities 562 1,170 84 676
Financial instruments, maturity >5 years
Lease liabilities 631 888 0 0
Derivative financial instruments, maturity <1 year 290,381 419,439 267,569 418,879
Derivative financial instruments, maturity 1-5 years 64,225 149,548 60,320 146,397
Derivative financial instruments, maturity >5 years 374 0 374 0
Total financial liabilities 1,122,377 1,525,157 1,092,655 1,522,763
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 26
3.4 CAPITAL RISK MANAGEMENT
For the purpose of the Group’s capital management,
capital includes issued capital, share premium and all
other equity reserves attributable to the equity holder of
the parent.
The Group manages its capital to ensure that entities in
the Group will be able to continue as going concern
while maximising the return to shareholders through the
optimisation of the debt and equity balance.
The capital structure of the Group consists of net debt
and equity of the Group as disclosed in the statement of
equity.
The Group is not subject to any externally imposed capi-
tal requirements. Negative net debt at 31 December
2024 and 2023 are primarily related to excess cash, re-
lated to inflow derived from the extraordinary market
conditions and prices in 2022, deposited in the group
cash pool.
3.5 DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments in Danske Commodities
mainly consist of commodity derivatives that are traded
as part of the Group’s ordinary business activities as
well as foreign exchange derivatives used for managing
currency risk exposure. Trading activities are undertaken
by using a range of contract types in combination to
create incremental gains by arbitraging prices between
markets, locations and time periods. Foreign currency
derivatives are traded to mitigate the exposure to cur-
rencies denominated in a currency other than EUR. Fi-
nancial risks relating to the financial instruments are
managed on a portfolio basis. The net of these expo-
sures is monitored daily through risk reporting. The
credit risk is assessed separately and presented in a ta-
ble in note 3.2. For further information about offsetting
of financial assets and liabilities, refer to note 5.7.
For information about the methods and assumptions
used in determining the fair value of derivatives, refer to
note 3.6.
ACCOUNTING POLICIES
Derivatives are primarily classified as ‘held for trading’
for accounting purpose and initially recognised and
subsequently measured at fair value through profit and
loss and recognised in the balance sheet as ‘derivative
financial instruments’. Derivative financial instruments
that are held for trading are classified as current assets
and liabilities regardless of their maturity date. Deriva-
tive financial instruments are categorised by means of
shared risk and underlying commodity.
Danske Commodities routinely enters into sale and pur-
chase transactions for physical delivery of energy com-
modities. A considerable part of these transactions for
physical delivery of a non-financial item is considered
within the scope of IFRS 9 since the contracts are capa-
ble of being net settled, and they are consequently ac-
counted for as derivative financial instruments mea-
sured at fair value through profit and loss. The contracts
held for trading are not entered into for the Group’s own
use.
A derivative embedded in a hybrid contract, with a non-
financial host contract, is separated from the host con-
tract and accounted for as a separate derivative if:
• the economic characteristics and risks are not
closely related to the host contract;
• a separate instrument with the same terms as
the embedded derivative would meet the defi-
nition of a derivative;
• and the hybrid contract is not measured at fair
value through profit or loss.
Embedded derivatives are measured at fair value with
changes in fair value recognised in profit or loss.
GEARING RATIO
Group Parent
EUR '000
2024 2023 2024 2023
Debt * 771,258 962,416 768,193 959,159
Less:
Group cash pool (part of 'receivables from group enterprises') 1,285,681 1,272,696 1,285,681 1,272,696
Cash and cash equivalents 250,580 170,651 209,233 94,560
Net debt -765,003 -480,931 -726,721 -408,097
Equity ** 2,185,576 2,795,018 2,185,576 2,795,018
Net debt to equity ratio (%) -35% -17% -33% -15%
** Equity includes share capital, share premium and other equity reserves of the Group.
* Debt is defined as lease liabilities, trade and other payables (excluding derivatives and financial gurantee contracts), prepayments,
deposits related to trading and payables to group enterprises.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 27
3.5 DERIVATIVE FINANCIAL INSTRUMENTS – CONTINUED
A portion of the sale and purchase transactions for
physical delivery of energy commodities takes the form
of contracts that were entered into and continue to be
held for the purpose of receipt or delivery of the physi-
cal commodity in accordance with the Group’s expected
sale, purchase or usage requirements (‘own use’) and are
not within the scope of IFRS 9. The assessment of
whether a contract is deemed to be ‘own use’ is based
on the nature of the promise within the contract as well
as facts and circumstances of how the contract is in-
cluded in Danske Commodities’ business activity.
3.6 FAIR VALUE MEASUREMENTS
Determining the fair value of the financial instruments
recognised and measured at fair value through profit
and loss in the financial statements may require the use
of estimates. To provide an indication about the relia-
bility of the inputs used in determining fair value, the
Group has classified its financial instruments into the
three levels.
LEVEL 1
Exchange-traded derivatives are valued using closing
prices provided by the exchanges at the balance sheet
date. These derivatives are categorised within level 1 of
the fair value hierarchy.
LEVEL 2
Derivatives designated to level 2 include both power,
gas and certificate trades with a typical contract
length < 1 year. Over-the-counter (OTC) financial swaps
and physical commodity sale and purchase contracts
including commodity forwards and options are gene-
rally valued using readily available information in the
public markets and if necessary, quotations provided by
brokers and price index developers.
Power capacities and foreign exchange contracts within
Danske Commodities are measured using internal mo-
dels. Internal models refer to standard valuation mod-
els that use market forward levels on standard instru-
ments, as well as incorporating inputs for the volatility
of the underlying indices, markets or commodities.
LEVEL 3
Derivatives within level 3 of the fair value hierarchy in-
cludes derivatives where the unobservable inputs used
in the valuation is significant. These inputs include
prices risk premiums, volatility as well as prices estab-
lished through consensus pricing information.
For some markets, there are only observable prices
available for a maximum of three years ahead, after
which there is no active market. Danske Commodities
holds power forward contracts up to a 10-year time
horizon. For OTC commodity derivatives in this time
horizon, the market price used in areas with no observa-
ble prices is calculated based on latest observable
spreads to neighbouring markets with observable
prices.
The valuation of power contracts with a variable deli-
very profile incorporates a risk premium based on ob-
servable market activity for the contracts while ac-
counting for the relationship to the observable base
prices. For the valuation of clean spark spread options
products, the fair value is estimated using simulation
valuation techniques using assumptions developed in-
ternally based on observable market activity. The vola-
tility factor used in the simulation model ranges from
0.35 to 0.53 (2023: 0.40 to 0.78).
Based on the unobservable input parameters above a
reasonable alternative possible assumption is consi-
dered a movement of the unobservable input of 5%.
The effect of using unobservable prices far out in time is
mainly relating to contracts within Danske Commodi-
ties Comercializadora de Energia Ltda. An increase in
the unobservable prices used of 5% will decrease the
fair value by EUR 3,804 thousand. A decrease of 5% will
increase the fair value by 3,804 thousand.
An increase of the volatility factor used in simulation
models of 5% will increase the fair value by EUR 370
thousand (2023: EUR 2,105 thousand). A decrease of 5%
decreases fair value by EUR 371 thousand (2023: EUR
2,100 thousand).
VALUATION PROCESSES
The valuation process of the derivatives includes input
from relevant stakeholders of Danske Commodities, and
the final valuation is verified and approved by the Risk
Management function. To minimise the use of subjective
estimates or modifications of parameters and calcula-
tion models, it is Danske Commodities’ policy to deter-
mine fair values based on the external information that
most accurately reflects the market values. The Group
uses pricing services and benchmark services to in-
crease the data quality. Danske Commodities’ policy is
to recognise transfers into and out of fair value hierar-
chy levels at the end of each reporting period.
Transfers in fair value hierarchy
The transfer from level 2 to level 3 relates to financial
instruments whose measurement is now using signifi-
cant unobservable input.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 28
3.6 FAIR VALUE MEASUREMENTS – CONTINUED
2024
Quoted prices in active
markets
Significant observable
inputs
Unobservable inputs
EUR '000 Note Level 1 Level 2 Level 3 Total
Financial assets
Gas trading derivatives 1,449 129,913 359 131,721
Power trading derivatives 543 72,285 26,065 98,893
Trading certificates 0 48,275 0 48,275
Foreign exchange derivatives 0 1,923 0 1,923
Non-financial assets
Gas trading inventories 5.1 0 376,195 0 376,195
Certificate trading inventories 5.1 0 19,207 0 19,207
Total financial and non-financial assets 1,992 647,798 26,424 676,214
Liabilities
Gas trading derivatives 286 154,833 55,905 211,024
Power trading derivatives 42 65,700 27,987 93,729
Trading certificates 0 40,789 0 40,789
Foreign exchange derivatives 0 6,903 0 6,903
Total financial liabilities 328 268,225 83,892 352,445
2023
Quoted prices in active
markets
Significant observable
inputs
Unobservable inputs
EUR '000 Note Level 1 Level 2 Level 3 Total
Financial assets
Gas trading derivatives 968 716,637 396 718,001
Power trading derivatives 2,609 176,064 24,986 203,659
Trading certificates 2,077 22,014 0 24,091
Foreign exchange derivatives 0 4,292 0 4,292
Non-financial assets
Gas trading inventories 5.1 0 732,615 0 732,615
Certificate trading inventories 5.1 0 19,106 0 19,106
Total financial and non-financial assets 5,654 1,670,728 25,382 1,701,764
Liabilities
Gas trading derivatives 0 341,638 134,522 476,160
Power trading derivatives 122 70,497 4,289 74,908
Trading certificates 0 10,953 0 10,953
Foreign exchange derivatives 0 444 0 444
Total financial liabilities 122 423,532 138,811 562,465
Group
Group
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 29
3.6 FAIR VALUE MEASUREMENTS – CONTINUED
2024 Parent
Quoted prices in active
markets
Significant observable
inputs
Unobservable inputs
EUR '000 Note Level 1 Level 2 Level 3 Total
Financial assets
Gas trading derivatives 1,625 130,009 359 131,993
Power trading derivatives 364 50,238 21,315 71,917
Trading certificates 0 48,275 0 48,275
Foreign exchange derivatives 0 1,923 0 1,923
Non-financial assets
Gas trading inventories 5.1 0 376,195 0 376,195
Certificate trading inventories 5.1 0 19,207 0 19,207
Total financial and non-financial assets 1,989 625,847 21,674 649,510
Liabilities
Gas trading derivatives 269 154,838 55,905 211,012
Power trading derivatives 23 39,653 27,619 67,295
Trading certificates 0 40,789 0 40,789
Foreign exchange derivatives 0 6,903 0 6,903
Total financial liabilities 292 242,183 83,524 325,999
2023 Parent
Quoted prices in active
markets
Significant observable
inputs
Unobservable inputs
EUR '000 Note Level 1 Level 2 Level 3 Total
Financial assets
Gas trading derivatives 968 716,638 396 718,002
Power trading derivatives 2,609 171,856 24,986 199,451
Trading certificates 2,077 22,014 0 24,091
Foreign exchange derivatives 0 4,292 0 4,292
Non-financial assets
Gas trading inventories 5.1 0 732,615 0 732,615
Certificate trading inventories 5.1 0 19,106 0 19,106
Total financial and non-financial assets 5,654 1,666,521 25,382 1,697,557
Liabilities
Gas trading derivatives 0 341,638 134,522 476,160
Power trading derivatives 122 10,953 4,289 15,364
Trading certificates 0 66,877 0 66,877
Foreign exchange derivatives 0 444 0 444
Total financial liabilities 122 419,912 138,811 558,845
LEVEL 3 DERIVATIVES
Group Parent
EUR '000 2024 2023 2024 2023
Fair value contracts at 1 January -113,429 77,885 -113,429 77,885
Transfers into level 3 276 0 0 0
Settlements 92,933 53,689 92,933 53,689
Gains (losses) recognised in the income statement -14,670 -197,311 -14,670 -197,311
Purchases -26,123 -48,114
-25,993
-48,114
Sales 3,545 422 -691 422
Net fair value of contracts at 31 December -57,468 -113,429 -61,850 -113,429
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 30
3.6 FAIR VALUE MEASUREMENTS – CONTINUED
SIGNIFICANT ACCOUNTING ESTIMATES
In some cases, the fair values of derivatives are esti-
mated using internal models due to the absence of
quoted prices or other observable, market-corroborated
data. This primarily applies to the Group’s longer-term,
structured derivative contracts or contracts in illiquid
markets. Most of these contracts are valued using mo-
dels with inputs that include price curves for each of the
different products. These price curves are built up from
available active market pricing data, including volati-
lity and correlation, and modelled using the maximum
available market-derived information. Additionally,
when limited data exist for certain products or market
areas, prices are determined using historical and long-
term pricing relationships. The use of alternative esti-
mates or valuation methodologies may result in signifi-
cantly different values for these derivatives.
ACCOUNTING POLICIES
The Group measures financial instruments, such as de-
rivatives, at fair value at each balance sheet date. Fair
value is the price that would be received for selling an
asset or paid for transferring a liability in an orderly
transaction between market participants at the mea-
surement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or
transfer the liability takes place either:
• in the principal market for the asset or liability,
or
• in the absence of a principal market, in the
most advantageous market for the asset or lia-
bility
The fair value of an asset or a liability is measured us-
ing the assumptions that market participants would use
when pricing the asset or liability, assuming that mar-
ket participants act in their economic best interest.
A fair value measurement of a non-financial asset takes
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.
Danske Commodities uses valuation techniques that are
appropriate in the circumstances and for which suffi-
cient data are available to measure fair value, maximi-
sing the use of relevant observable inputs and minimi-
sing the use of unobservable inputs.
All assets and liabilities for which fair value is meas-
ured or disclosed in the financial statements are cate-
gorised within the fair value hierarchy, described as fol-
lows, based on the lowest level input that is significant
to the fair value measurement as a whole:
• level 1 – quoted and unadjusted market prices
in active markets for identical assets or liabili-
ties
• level 2 – valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly ob-
servable
• level 3 – valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable
For assets and liabilities that are recognised in the fi-
nancial statements at fair value on a recurring basis,
the Group determines whether transfers have occurred
between levels in the hierarchy by reassessing categori-
sation at the end of each period in which the reassess-
ment is based on the lowest level input that is signifi-
cant to the fair value measurement as a whole.
Danske Commodities’ Risk Management function deter-
mines the policies and procedures for recurring fair
value measurement for unquoted financial assets and
liabilities.
For the purpose of fair value disclosures, the Group has
determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or li-
ability and the level of the fair value hierarchy, as ex-
plained above.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 31
3.7 FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
The carrying amount of financial assets and liabilities
measured at amortised cost is considered a reasonable
approximation of fair value.
3.8 DEFERRED DAY-1 PROFIT OR LOSS
Refer to note 3.6 for information regarding fair value
measurements.
ACCOUNTING POLICIES
The Group uses various valuation techniques to measure
the fair value of financial instruments that are not
traded in an active market. Differences may arise be-
tween the fair value at initial recognition and the
amount determined at initial recognition using the valu-
ation techniques. Any such gains or losses are deferred
and recognised in the income statement over the deli-
very period of underlying contracts.
Group Parent
EUR '000 2024 2023 2024 2023
Financial assets measured at fair value through profit or loss
Derivatives held for trading * 278,889 945,751 252,185 941,544
Derivatives in economic hedges ** 1,923 4,292 1,923 4,292
Financial assets measured at amortised cost
Trade receivables 770,352 693,361 769,029 690,087
Other receivables 20,312 4,889 0 2,801
Receivables from group enterprises 1,379,725 1,532,700 1,421,485 1,550,581
Deposits related to trading 46,050 46,712 45,725 45,500
Current asset investments 45,826 54,001 0 0
Cash and cash equivalents 250,580 170,651 209,233 94,560
Financial assets 2,793,657 3,452,357 2,699,580 3,329,365
Financial liabilities measured at fair value through profit or loss
Derivatives held for trading * 345,542 562,021 319,096 558,401
Derivatives in economic hedges ** 6,903 444 6,903 444
Financial liabilities measured at amortised cost
Trade payables 476,389 411,813 474,443 409,121
Payables to group enterprises 103,939 217,743 107,967 226,436
Other payables 27,328 28,565 23,441 25,356
Deposits related to trading 157,750 294,660 157,750 294,660
Lease liabilities 1,991 3,389 791 1,914
Financial liabilities 1,119,842 1,518,635 1,090,391 1,516,332
* Derivative financial instruments consist of swaps, futures, forwards and options related to commodity trading derivatives.
** Derivatives in economic hedges consist of foreign exchange derivatives.
Group and Parent
EUR '000 2024 2023
Balance at 1 January 124,022 162,196
Profit/loss deferred on new transactions 18,007 50,179
Profit/loss recognised in the income statement -83,086 -88,353
Balance at 31 December 58,943 124,022
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 32
OTHER FINANCIAL NOTES
4.1 STAFF COSTS
Refer to note 4.2 for further information regarding the
Group’s share savings programme.
ACCOUNTING POLICIES
Staff costs
Wages, salaries, pension contributions, social security
contributions, sick leave and bonuses are recognised in
the year in which the associated services are rendered
by employees of the Group.
Other external expenses
Other external expenses comprise other operating ex-
penses, including expenses for premises, consultancy,
marketing and office expenses, etc.
4.2 RELATED PARTIES
Danske Commodities A/S is controlled by Equinor Refin-
ing Norway AS, 5954 Mongstad, 1263 Lindås, Norway. The
ownership is registered in the Company’s register of
shareholders as holding 100% of the votes and shares.
The Group is included in the consolidated financial
statements of its ultimate Parent Company, Equinor
ASA.
The consolidated financial statements of Equinor ASA
can be obtained on request to:
Equinor ASA, Forusbeen 50, 4035 Stavanger, Norway.
OTHER RELATED PARTIES
Other related parties comprise the management of Equi-
nor Refining Norway AS and Equinor ASA as well as the
Board of Directors and the Executive Board, together
with their immediate families. Furthermore, other re-
lated parties include companies in which Equinor ASA
and the aforementioned individuals have significant in-
fluence, joint control or control.
The majority of the agreements related to these trans-
actions are renegotiated on a regular basis. There were
no transactions with members of the Board of Directors
and the Executive Board, other than remuneration.
Group Parent
EUR '000 2024 2023 2024 2023
Wages and salaries 72,392 54,731 69,335 50,648
Pensions 5,009 3,976 4,895 3,878
Other staff costs 3,930 3,697 3,009 3,081
Staff costs 81,331 62,404 77,239 57,607
Average number of employees 551 446 526 427
Number of employees, end of the year 572 487 541 469
The Group is controlled by the following entities:
Name Type Place of incoporation Ownership interest
Equinor ASA * Ultimate parent entity Norway 100%
Equinor refining Norway AS ** Immediate parent entity Norway 100%
* The Norwegian State is the majority shareholder of Equinor ASA.
** Equinor ASA holds 100% of the issued ordinary shares of Equinor refining Norway AS.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 33
4.2 RELATED PARTIES – CONTINUED
The Group holds a Parent Company Guarantee issued by
Equinor ASA of EUR 225 million (2023: EUR 300 million) to
cover ongoing trading commitments.
KEY MANAGEMENT REMUNERATION
During the year, key management personnel consisted of
the CEO and the CFO.
Remuneration to six members of the Board of Directors
is paid by the ultimate parent, Equinor ASA. Remunera-
tion to the Board of Directors paid by Danske Commodi-
ties A/S amounted to EUR 0 thousand for 2024 (2023: one
member, EUR 26 thousand).
Remuneration of the Executive Board comprises a base
salary, pension contribution, share-based incentive pro-
grammes and other benefits (car, cash bonus, etc.)
SHARE SAVINGS PROGRAMME
The share savings programme provides employees with
the opportunity to purchase Equinor shares through
monthly salary deductions. If shares are kept for two
full calendar years of continued employment following
the year of purchase, the employees will be allocated
one bonus share for each share purchased. The latest
vesting date for the granted bonus warrants is 2025. The
amount expensed for the Executive Board amounted to
EUR 32 thousand in 2024 (2023: EUR 50 thousand).
Group Parent
EUR '000 2024 2023 2024 2023
Transactions with related parties
Transactions included in 'trading income and revenue from contracts
with customers':
Sales of energy commodities to related parties 746,208 5,550,688 835,314 5,630,765
Sales of energy commodities to other related parties 747,555 1,149,690 747,555 1,149,654
Purchases of energy commodities from related parties 982,412 3,469,891 1,050,757 3,553,170
Purchases of energy commodities from other related parties 25,567 19,320 25,567 19,320
Change in value of derivatives from related parties 1,154 -1,479,235 1,154 -1,479,235
Change in value of derivatives from other related parties 139 -10 139 -10
Transactions included in 'cost of sales':
Purchases of energy commodities from other related parties 381,502 378,048 381,502 378,048
Other transactions:
Other purchases from related parties 9,996 9,232 11,994 11,973
Other purchases from other related parties 1,329 1,147 1,328 958
Other sales to related parties 9,714 10,600 9,087 10,514
Other sales to other related parties 4,394 3,129 4,394 3,129
Finance expenses to related parties 934 24,144 934 24,146
Finance income from related parties 55,986 126,485 57,548 128,698
Finance income from other related parties 352 260 352 260
Capital injection from related parties 0 1,925,000 0 1,925,000
Capital injection to related parties 0 0 6,000 62,387
Capital withdrawal to related parties 0 3,679,762 0 3,679,762
Dividend paid to related parties 750,000 1,495,238 750,000 1,495,238
Dividend received from related parties 0 0 47,026 30,173
Related party balances at 31 December
Payables to related parties 39,413 150,108 43,579 158,948
Receivables from related parties 90,707 247,130 132,713 265,929
Payables to other related parties 64,526 67,635 64,388 67,488
Receivables from other related parties 8,578 12,874 8,332 11,956
Fair value of derivatives with related parties, asset 16,513 258,690 16,513 258,690
Fair value of derivatives with related parties, liability 93,332 336,663 93,332 336,663
Fair value of derivatives with other related parties, asset 168 25 168 25
Fair value of derivatives with other related parties, liability 4 0 4 0
Loans to other related parties 1,280,440 1,272,696 1,280,440 1,272,696
REMUNERATION OF THE EXECUTIVE BOARD
Group and Parent
EUR '000 2024 2023
Base salary 1,090 981
Other benefits 769 723
Pensions contributions 110 98
Shared-based payments 167 184
Total remuneration 2,136 1,986
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 34
4.2 RELATED PARTIES – CONTINUED
LONG-TERM INCENTIVE PROGRAMME (‘LTI’)
The LTI is calculated as a portion of the CEO’s fixed re-
muneration. On behalf of the CEO, Danske Commodities
A/S acquires shares equivalent to the net annual grant
amount. The shares are subject to a three-year lock-in
period and then released for the CEO’s disposal. If the
lock-in obligations are not fulfilled, the CEO must pay
back the gross value of the locked-in shares limited to
the gross value of the grant amount.
The level of the annual LTI reward is in the range of 20-
30% of the annual base salary for the participant on the
condition the CEO is invited to participate in in the LTI
programme. The latest vesting date for granted LTI-pro-
grammes is 2025. The amount expensed for the LTI pro-
gramme amounted to EUR 134 thousand in 2024 (2023:
EUR 134 thousand).
The total recognised expense for the Executive Board
amounts to EUR 167 thousand in 2024 (2023: EUR 184
thousand) and was expensed in the period incurred.
ACCOUNTING POLICIES
Equinor ASA has established share-based incentive pro-
grammes which are equity-settled and in which the Ex-
ecutive Board and employees in the Group can partici-
pate. Danske Commodities compensates its parent en-
tity for the cost of both the LTI and the share savings
programme through intra-group recharges. The re-
charges are linked to the fair value of the programmes
and the vesting period. Recharged costs from the parent
entity are expensed in the period incurred. Costs rela-
ting to the share-based programmes are recognised in
the income statement within staff costs.
4.3 FINANCIAL INCOME AND EXPENSES
ACCOUNTING POLICIES
Financial income and expenses comprise interest in-
come and interest expenses, the interest element of
lease liabilities, realised and unrealised exchange rate
adjustments as well as surcharges and refunds under
the Tax Prepayment Scheme, etc. Other financial income
and expenses primarily comprise realised gains and
losses on exchange forward derivatives.
4.4 DISTRIBUTIONS MADE AND PROPOSED
Proposed dividends on ordinary shares are subject to
approval at the Annual General Meeting and are not
recognised as a liability as of 31 December 2024.
FINANCIAL INCOME
Group Parent
EUR '000 2024 2023 2024 2023
Interest income, group enterprises 56,338 126,745 57,900 128,958
Currency exchange gains 1,217 932 1,179 0
Other financial income 19,395 56,836 12,314 52,257
Total 76,950 184,513 71,393 181,215
FINANCIAL EXPENSES
EUR '000 2024 2023 2024 2023
Interest expense, group enterprises 934 24,144 934 24,146
Other financial expenses 35,947 24,060 34,774 23,523
Currency exchange losses 534 5,749 0 5,741
Interst on lease liabilities 175 128 29 47
Total 37,590 54,081 35,737 53,457
Group Parent
EUR '000 2024 2023 2024 2023
Cash dividends on ordinary shares declared and paid:
Final dividend for 2023: 4.29 EUR per share (2022: 8.54 EUR per share) 750,000 1,495,239 750,000 1,495,239
Proposed dividends on ordinary shares:
Final cash dividend for 2024: 0.86 EUR per share (2023: 4.29 EUR per
share)
150,000 750,000 150,000 750,000
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 35
WORKING CAPITAL
5.1 INVENTORIES
Inventories comprise gas and certificates for resale. Ex-
penses relating to the gas trading inventories and cer-
tificates trading inventories are recognised as ‘trading
income’. Expenses relating to other certificates are re-
cognised as ‘cost of sales’.
Costs related to certificate inventories expensed in the
income statement amounts to EUR 491,176 thousand
(2023: EUR 762,742 thousand).
There have been no write-downs on inventory at 31 De-
cember 2024.
ACCOUNTING POLICIES
The trading inventories are acquired with the purpose of
selling in the near future and generating a profit from
fluctuations in price or margin. Therefore, the Group
meets the criteria in IAS 2 for broker-traders.
As a result, trading inventories are measured at fair
value less cost to sell. Changes in fair value are recog-
nised in the income statement within ‘trading income
and revenue from contracts with customers'. The inven-
tories are valuated using the benchmark prices from the
appropriate gas hubs and categorised within level 2 of
the fair value hierarchy.
Certificate inventories, that are not held for trading, are
measured at the lower of cost according to FIFO and net
realisable value. The net realisable value of certificate
inventories is calculated at the amount expected to be
generated by sales during normal operations less-sell-
ing expenses. The net realisable value is determined al-
lowing for marketability, obsolescence and develop-
ment in expected sales.
In the event of a write-down of certificate inventories to
net realisable value, the write-down is expensed in the
period when the loss occurs. Any subsequent reversal of
a write-down, as a result of an increase in the net reali-
sable value, will be recognised as a reduction in the
amount of inventory costs recognised in the period when
the increase has occurred.
5.2 TRADE RECEIVABLES
Group Parent
EUR '000 2024 2023 2024 2023
Trade receivables 770,669 693,874 769,346 690,600
Loss allowance -317 -513 -317 -513
Total receivables 770,352 693,361 769,029 690,087
LOSS ALLOWANCE
Group Parent
EUR '000 2024 2023 2024 2023
Loss allowance at 1 January 513 5,453 513 5,453
Loss allowance recognised in profit or loss during the year 317 513 317 513
Unused amount reversed -513 -5,453 -513 -5,453
Loss allowance at 31 December 317 513 317 513
Group Parent
EUR '000 2024 2023 2024 2023
Gas trading inventories 376,195 732,615 376,195 732,615
Certificate trading inventories 19,207 19,106 19,207 19,106
Other certificates 1,293 14,990 1,293 14,990
Total inventories 396,695 766,711 396,695 766,711
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 36
5.2 TRADE RECEIVABLES – CONTINUED
Information about the Group’s exposure to credit risk
and foreign currency risk can be found in notes 3.2 and
3.1. Information about the Group’s gross trade receiva-
bles balances at 31 December can be found in note 5.7.
ACCOUNTING POLICIES
Trade receivables are amounts due from counterparties
for goods sold or services performed in the ordinary
course of business. Trade receivables are measured at
amortised cost less allowance for lifetime expected
credit losses. They are generally due for settlement
within 30 days and are therefore all classified as cur-
rent.
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
Therefore, the Group does not track changes in credit
risk but instead recognises a loss allowance based on
lifetime expected credit losses at each reporting date.
The Group has established a provision matrix that is
based on its historical credit loss experience, taking for-
ward-looking factors into account. The expected loss
rates are updated at each reporting date. There have
been no significant changes in the estimation tech-
niques and assumptions during the year.
In addition to the lifetime expected credit loss allow-
ance on trade receivables, the Group may also recog-
nise an impairment on a specific debtor if there is any
internal or external information indicating that a loss
will incur. When receivables have been written off, the
Group continues to engage in enforcement activity to
attempt to recover the receivable due. Recoveries made
are recognised in profit or loss.
Impairment losses on trade receivables are presented
as other external expenses within operating profit. Sub-
sequent recoveries of amounts previously written off are
credited against the same line item.
AGING OF TRADE RECEIVABLES, GROSS
2024
Group
EUR '000 Current Between 30 and 60 days More than 60 days Total
Expected loss rate 0% 4% 0%
Carrying amount - trade receivables 1,406,113 2,003 2,432 1,410,548
Loss allowance 236 73 8 317
2023
Group
EUR '000 Current Between 30 and 60 days More than 60 days Total
Expected loss rate 0% 0% 0%
Carrying amount - trade receivables 1,951,652 0 701 1,952,353
Loss allowance 513 0 0 513
2024
Parent
EUR '000 Current Between 30 and 60 days More than 60 days Total
Expected loss rate 0% 4% 0%
Carrying amount - trade receivables 1,404,790 2,003 2,432 1,409,225
Loss allowance 236 73 8 317
2023
Parent
EUR '000 Current Between 30 and 60 days More than 60 days Total
Expected loss rate 0% 0% 0%
Carrying amount - trade receivables 1,948,378 0 701 1,949,079
Loss allowance 513 0 0 513
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 37
5.3 OTHER RECEIVABLES
ACCOUNTING POLICIES
Other receivables are measured at amortised cost. They
are generally due for settlement within one year and are
therefore all classified as current.
In certain cases, the Group may consider a receivable
to be in default when internal or external information
indicates that the Group is unlikely to receive the out-
standing contractual amounts in full before considering
any credit enhancements held by the Group. A receiva-
ble is written off when there is no reasonable expecta-
tion of recovering the contractual cash flows.
5.4 OTHER PAYABLES
ACCOUNTING POLICIES
Other payables are measured at amortised cost and are
unsecured. They are generally due for settlement within
one year and are therefore all classified as current.
5.5 DEPOSITS RELATED TO TRADING
Deposits relating to trading activities within the Group
are the amounts of cash required to maintain or open a
trading position with certain counterparties. Deposits
related to trading consists of margin calls and cash de-
posits.
Margin calls are a collateral payment to/from OTC
counterparties to cover changes in the value of underly-
ing assets used in futures/forward contracts. Cash de-
posits are used as collateral in order for the Group to
open a new position for certain counterparties.
Margin calls are monitored daily by management and
increases/decreases in margin calls are transferred at a
daily basis to ensure credit risk is minimised to the
greatest extent possible under the applicable agree-
ments.
An obligation exists between the parties to repay the
deposit to the counterparty upon settlement of the con-
tracts. There are no other significant terms and condi-
tions associated with the use of collateral.
ACCOUNTING POLICIES
Deposits related to trading are measured at amortised
cost and are unsecured. They are generally due for set-
tlement within one year and are therefore all classified
as current.
Group Parent
EUR '000 2024 2023 2024 2023
VAT receivables 35,336 40,518 26,345 31,702
Other receivables 20,312 4,889 0 2,801
Total 55,648 45,407 26,345 34,503
Group Parent
EUR '000 2024 2023 2024 2023
Staff obligations 23,431 22,883 22,813 22,883
Other payables 3,897 5,682 628 2,473
VAT payables 59 1,738 0 0
Total 27,387 30,303 23,441 25,356
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 38
5.6 PROVISIONS
ONEROUS CONTRACTS
Onerous contracts comprise contracts with delivery
from 2024 to 2026. The onerous contracts comprise con-
tracts for which the unavoidable costs for purchase of
commodities exceed the economic benefits for the same
commodities.
LITIGATION AND CLAIMS
Decision from French Energy Regulatory Commission
(CRE)
Danske Commodities has received a decision in January
2025 from the French Energy Regulatory Commission
(CRE) where the Group has been ordered to pay financial
penalties of EUR 8 million as a result of alleged market
manipulation regarding two bids for gas capacities on
the Pirineos (PIR) interconnection point – one in 2019
and one in 2020.
The Group remains firm in its belief that the decision is
incorrect. This is the basis for Danske Commodities’ ap-
peal to the Higher Administrative Court, which is the ul-
timate authority on this matter. Danske Commodities
has provided for its best estimate in the matter.
Other claims
The Group is party to a limited number of minor court
cases and legal disputes. In the Group’s assessment,
none of these will significantly impact the Danske Com-
modities’ financial position, neither individually nor
collectively. The outcome of the claims may depend on
future events which are uncertain by nature.
ACCOUNTING POLICIES
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources em-
bodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation.
If the Group has a contract that is onerous, the present
obligation under the contract is recognised and meas-
ured as a provision. An onerous contract is a contract
under which the unavoidable costs (i.e. the costs that
the Group cannot avoid because it has the contract) of
meeting the obligations under the contract exceed the
economic benefits expected to be received under it.
Group Parent
EUR '000
2024 2023 2024 2023
Onerous contracts
At 1 January 621 1,083 621 1,083
Utilised amounts -328 -462 -328 -462
Litigation and claims
At 1 January 1,300 6,300 1,300 6,300
Arising during the year 7,191 0 7,191 0
Reversal of unused amounts 0 -5,000 0 -5,000
Total 8,784 1,921 8,784 1,921
Current 8,686 1,628 8,686 1,628
Non-current 98 293 98 293
Total 8,784 1,921 8,784 1,921
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 39
5.7 OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES
2024
EUR '000
Gross amounts of
recognised financial
asset/liability
Gross amounts offset
in the balance sheet
Net amounts
presented in the
balance sheet
Cash collateral
(received/pledged)
Net amount
Financial assets
Trade receivables 1,410,548 640,196 770,352 136,218 634,134
Derivative financial
instruments
1,597,747 1,316,935 280,812 21,532 259,280
Deposits related to
trading
731,953 687,236 44,717 0 44,717
Total 3,740,248 2,644,367 1,095,881 157,750 938,131
Financial liabilities
Trade payables 1,116,585 640,196 476,389 26,820 449,569
Derivative financial
instruments
1,693,858 1,341,413 352,445 3,760 348,685
Deposits related to
trading
820,508 662,758 157,750 0 157,750
Total 3,630,951 2,644,367 986,584 30,580 956,004
2023
EUR '000
Gross amounts of
recognised financial
asset/liability
Gross amounts offset
in the balance sheet
Net amounts
presented in the
balance sheet
Cash collateral
(received/pledged)
Net amount
Financial assets
Trade receivables 1,952,353 1,258,992 693,361 160,507 532,854
Derivative financial
instruments
4,337,928 3,387,885 950,043 134,153 815,890
Deposits related to
trading
1,886,883 1,840,595 46,288 0 46,288
Total 8,177,164 6,487,472 1,689,692 294,660 1,395,032
Financial liabilities
Trade payables 1,670,805 1,258,992 411,813 23,670 388,143
Derivative financial
instruments
3,843,175 3,280,710 562,465 3,610 558,855
Deposits related to
trading
2,242,430 1,947,770 294,660 0 294,660
Total 7,756,410 6,487,472 1,268,938 27,280 1,241,658
2024 Parent
Related amounts not set off in the balance sheet
EUR '000
Gross amounts of
recognised financial
asset/liability
Gross amounts offset
in the balance sheet
Net amounts
presented in the
balance sheet
Cash collateral
(received/pledged)
Net amount
Financial assets
Trade receivables 1,409,225 640,196 769,029 136,218 632,811
Derivative financial
instruments
1,551,389 1,297,281 254,108 21,532 232,576
Deposits related to
trading
717,374 672,976 44,398 0 44,398
Total 3,677,988 2,610,453 1,067,535 157,750 909,785
Financial liabilities
Trade payables 1,114,639 640,196 474,443 26,820 447,623
Derivative financial
instruments
1,647,751 1,321,752 325,999 3,760 322,239
Deposits related to
trading
806,255 648,505 157,750 0 157,750
Total 3,568,645 2,610,453 958,192 30,580 927,612
Related amounts not set off in the balance sheet
Related amounts not set off in the balance sheet
Group
Group
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 40
5.7 OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES – CONTINUED
ACCOUNTING POLICIES
The Group assesses financial assets and liabilities on
an individual basis and uses that assessment as the unit
of account. Financial assets and liabilities are offset,
and the net amount is reported in the balance sheet
when the Group currently has a legally enforceable
right to offset the recognised amounts, and there is an
intention to settle on a net basis or realise the asset
and settle the liability simultaneously.
The Group enters into master netting agreements with
counterparties to manage the credit risks associated
primarily with over-the-counter commodity trading.
These master netting agreements enable the Group and
its counterparties to set off financial liabilities against
financial assets in the ordinary course of business as
well as in case of default. In addition, exchange-traded
commodity derivatives are offset towards collateral re-
ceipts/payments as a result of day-to-day cash settle-
ments based on change in fair value of open derivative
positions.
Amounts which cannot be offset under IFRS Accounting
Standards, but which could be offset if certain condi-
tions arise such as collateral received or pledged, are
presented in the table to show the total net exposure of
the Group.
2023 Parent
Related amounts not set off in the balance sheet
EUR '000
Gross amounts of
recognised financial
asset/liability
Gross amounts offset
in the balance sheet
Net amounts
presented in the
balance sheet
Cash collateral
(received/pledged)
Net amount
Financial assets
Trade receivables 1,949,079 1,258,992 690,087 160,507 529,580
Derivative financial
instruments
4,324,048 3,378,212 945,836 134,153 811,683
Deposits related to
trading
1,877,104 1,832,023 45,081 0 45,081
Total 8,150,231 6,469,227 1,681,004 294,660 1,386,344
Financial liabilities
Trade payables 1,668,113 1,258,992 409,121 23,670 385,451
Derivative financial
instruments
3,830,984 3,272,139 558,845 3,610 555,235
Deposits related to
trading
2,232,756 1,938,096 294,660 0 294,660
Total 7,731,853 6,469,227 1,262,626 27,280 1,235,346
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 41
5.8 CASH FLOW
ACCOUNTING POLICIES
Cash flow statement
The statement of cash flows is compiled using the indi-
rect method, showing cash flows from operating, inves-
ting and financing activities as well as cash and cash
equivalents at the beginning and end of the year for the
Group and the Parent Company, respectively.
Cash flows from operating activities
Cash flows from operating activities are calculated as
the net profit for the year adjusted for changes in wor-
king capital and non-cash operating items such as de-
preciation, amortisation and impairment losses and
provisions.
Cash payments for short-term leases, leases of low
value assets and variable lease payments, which are
not included in the measurement of the lease liability
within operating activities, are classified as cash flows
from operating activities.
Working capital comprises current assets less short-
term debt excluding items included in cash and cash
equivalents.
Cash flows from investing activities
Cash flows from investing activities comprise cash
flows from acquisitions, disposals and other adjust-
ments of intangible assets, property, plant and equip-
ment as well as investments in subsidiaries and current
asset investments.
Cash flows from financing activities
Cash flows from financing activities comprise cash
flows from the raising and repayment of long-term debt,
repayment of lease liabilities, payments to and from
shareholders as well as payments to group cash pool.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and
in hand and short-term deposits with a maturity of three
months or less. The short-term deposits are highly li-
quid, readily convertible to known amounts of cash and
subject to an insignificant risk of changes in value and
are held for the purpose of meeting short-term cash
commitments.
Demand deposits held in clearing bank accounts are in-
cluded as restricted cash if the deposits provided as
part of the Group’s operating activities and therefore is
deemed as held for the purpose of meeting short-term
cash commitments, and the deposits can be released
from the account without undue expenses.
CASH FLOW STATEMENT - NON-CASH ADJUSTMENTS
Group Parent
EUR '000 2024 2023 2024 2023
Financial income -76,950 -184,513 -71,393 -181,215
Financial expenses 37,590 54,081 35,737 53,457
Share of profit in subsidiaries after tax 0 0 4,776 -16,885
Amortisation, depreciation, disposals and impairment losses 13,067 12,024 12,875 11,935
Tax on profit for the year 52,727 96,079 50,791 91,145
Exchange rate adjustments -8,476 -565 0 0
Total 17,958 -22,894 32,786 -41,563
CASH FLOW STATEMENT - CHANGE IN WORKING CAPITAL
Group Parent
EUR '000 2024 2023 2024 2023
Change in inventories 370,016 1,147,764 370,016 1,147,764
Change in trade and other receivables 63,244 2,198,654 51,924 2,212,073
Change in fair value of derivatives 459,211 1,841,466 458,882 1,843,426
Change in trade and other payables -182,897 -2,052,377 -182,980 -2,114,658
Total 709,574 3,135,507 697,842 3,088,605
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 42
CAPITAL EMPLOYED
6.1 INTANGIBLE ASSETS
Contractual rights consist of power purchase agree-
ments (PPAs) and gas storage contracts which were ac-
quired in 2019 and 2020 from the ultimate Parent Com-
pany Equinor ASA. All the contracts were in operation at
the time of purchase by the Group. All contracts have
been acquired at a price reflecting fair value in the mar-
ket at the date of acquisition.
2024 Group
EUR '000 Contractual rights Software
Software development
projects in progress
Cost at 1 January 94,618 31,945 2,506
Additions - internally developed 0 0 1,419
Additions 0 2,069 170
Disposals 0 -6,062 0
Transfers 0 2,714 -2,714
Cost at 31 December 94,618 30,666 1,381
Amortisation and impairment losses at 1 January 36,364 22,829 0
Amortisation for the year 7,719 2,474 0
Reversal of amortisations on disposals for the year 0 -6,062 0
Amortisation and impairment losses at 31 December 44,083 19,241 0
Carrying amount at 31 December 50,535 11,425 1,381
2024 Parent
EUR '000 Contractual rights Software
Software development
projects in progress
Cost at 1 January 94,618 31,945 2,506
Additions - internally developed 0 0 1,419
Additions 0 2,000 170
Disposals 0 -6,062 0
Transfers 0 2,714 -2,714
Cost at 31 December 94,618 30,597 1,381
Amortisation and impairment losses at 1 January 36,364 22,829 0
Amortisation for the year 7,719 2,473 0
Reversal of amortisations on disposals for the year 0 -6,062 0
Amortisation and impairment losses at 31 December 44,083 19,240 0
Carrying amount at 31 December 50,535 11,357 1,381
2023 Group and Parent
EUR '000 Contractual rights Software
Software development
projects in progress
Cost at 1 January 94,618 28,754 1,167
Additions - internally developed 0 0 1,428
Additions 0 3,170 0
Disposals 0 -68 0
Transfers 0 89 -89
Cost at 31 December 94,618 31,945 2,506
Amortisation and impairment losses at 1 January 28,021 21,563 0
Amortisation for the year 8,343 1,326 0
Reversal of amortisation of disposals for the year 0 -60 0
Amortisation and impairment losses at 31 December 36,364 22,829 0
Carrying amount at 31 December 58,254 9,116 2,506
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 43
6.1 INTANGIBLE ASSETS – CONTINUED
ACCOUNTING POLICIES
Intangible assets are measured at cost less accumu-
lated amortisation and less any accumulated impair-
ment losses.
Cost comprises the cost of acquisition and expenses di-
rectly related to the acquisition up until the time when
the asset is ready for use.
Software projects containing significant development
aspects are identified as intangible assets when they
are clearly defined, identifiable, provide a development
opportunity for the Group and future use is intended.
Costs related to projects that do not meet the criteria
for recognition in the balance sheet are recognised as
expenses in the income statement as incurred. Develop-
ment costs previously recognised as an expense are not
recognised as an asset in a subsequent period.
Development costs that are directly attributable to the
design and testing of identifiable and unique projects,
including software products controlled by the Group,
are recognised as intangible assets when the following
criteria are met:
• it is technically feasible to complete the soft-
ware and it will be available for use
• management intends to complete the software
and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will
generate probable future economic benefits
• adequate technical, financial and other re-
sources needed to complete the development
and to use or sell the software are available
• the expenditure attributable to the software
during its development can be reliably mea-
sured
Costs associated with maintaining the assets are re-
cognised as an expense as and when incurred. Directly
attributable costs that are capitalised as part of the as-
sets include employee costs.
Capitalised development costs are recorded as intangi-
ble assets and amortised from the point at which the
asset is ready for use.
Amortisation based on cost reduced by any residual
value is calculated on a straight-line basis over the ex-
pected useful lives of the assets, which are:
Contractual rights: 4-18 years
Software: 3-5 years
For the parent entity, a reserve is recognised in equity
for software projects that meet the criteria as develop-
ment projects. The amount recognised corresponds to
the amount capitalised as intangible assets for these
projects since 1 January 2016. The reserve is reduced
concurrently with amortisation of the software projects
and presented after tax.
Intangible assets are tested for impairment whenever
events or changes in circumstances indicate that the
carrying amount may not be recoverable. The key as-
sumptions used by management to determine whether
external or internal indicators of impairment on intangi-
ble assets exist are commodity prices, market outlook
and secondary foreign exchange rates.
An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recovera-
ble amount. The recoverable amount is the higher of an
asset’s fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are se-
parately identifiable cash inflows which are largely in-
dependent of the cash inflows from other assets or
groups of assets (cash-generating units). Intangible as-
sets that suffered an impairment are reviewed for possi-
ble reversal of the impairment at the end of each report-
ing period.
Management assesses the risk of impairment of the
Group’s intangible assets. This requires judgement in re-
lation to the identification of cash-generating units
(CGUs) and other underlying assumptions used.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 44
6.2 PROPERTY, PLANT AND EQUIPMENT
2024 Group
EUR '000
Other fixtures
and fittings, tools
and equipment
Right-of-use assets
Leasehold
improvements
Cost at 1 January 7,757 8,451 2,206
Additions 1,174 205 0
Disposals -1,199 -79 0
Exchange rate adjustments -20 -246 -34
Cost at 31 December 7,712 8,331 2,172
Depreciation and impairment losses at 1 January 4,294 5,292 2,007
Depreciation for the year 1,499 1,333 42
Exchange rate adjustments -3 -23 -5
Reversal of depreciation on disposals for the year -1,199 -79 0
Depreciation and impairment losses at 31 December 4,591 6,523 2,044
Carrying amount at 31 December 3,121 1,808 128
2023 Group
EUR '000
Other fixtures
and fittings, tools
and equipment
Right-of-use assets
Leasehold
improvements
Cost at 1 January 6,951 6,957 2,034
Additions 810 1,593 187
Disposals -4 -99 0
Exchange rate adjustments 0 0 -15
Cost at 31 December 7,757 8,451 2,206
Depreciation and impairment losses at 1 January 3,271 4,122 1,963
Depreciation for the year 1,027 1,267 51
Exchange rate adjustments 0 0 -7
Reversal of depreciation on disposals for the year -4 -97 0
Depreciation and impairment losses at 31 December 4,294 5,292 2,007
Carrying amount at 31 December 3,463 3,159 199
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 45
6.2 PROPERTY, PLANT AND EQUIPMENT – CONTINUED
ACCOUNTING POLICIES
Individual components of property, plant and equip-
ment that have different useful lives are accounted for
as separate items, which are depreciated separately.
Property, plant and equipment is measured at cost less
accumulated depreciation and less any accumulated
impairment losses.
Cost comprises the cost of acquisition and expenses di-
rectly related to the acquisition up until the time when
the asset is ready for use.
Depreciation based on cost reduced by any residual
value is calculated on a straight-line basis over the ex-
pected useful lives of the assets, which are:
Other fixtures and fittings, tools and equipment: 3-5
years
Leasehold improvements: 2-5 years
Right-of-use assets: 2-10 years
In the case of changes in the depreciation period or the
residual value, the effect on the depreciation charges is
recognised prospectively as a change in accounting es-
timates if the amount is material.
Carrying amounts of property, plant and equipment are
reviewed on an annual basis to determine whether there
is any indication of impairment other than that ex-
pressed by depreciation. If so, an impairment test is
carried out to determine whether the recoverable
amount is lower than the carrying amount, and the asset
is written down to its lower recoverable amount.
The recoverable amount of the asset is calculated as
the higher of net selling price and value in use. When a
recoverable amount cannot be determined for the indi-
vidual asset, assets are assessed in the smallest group
of assets for which a reliable recoverable amount can
be determined based on an overall assessment.
2024 Parent
EUR '000
Other fixtures
and fittings, tools
and equipment
Right-of-use assets
Leasehold
improvements
Cost at 1 January 7,597 6,994 1,996
Additions 1,164 151 0
Disposals -1,199 -79 0
Cost at 31 December 7,562 7,066 1,996
Depreciation and impairment losses at 1 January 4,260 5,217 1,989
Depreciation for the year 1,479 1,197 7
Reversal of depreciation on disposals for the year -1,199 -79 0
Depreciation and impairment losses at 31 December 4,540 6,335 1,996
Carrying amount at 31 December 3,022 731 0
2023 Parent
EUR '000
Other fixtures
and fittings, tools
and equipment
Right-of-use assets
Leasehold
improvements
Cost at 1 January 6,895 6,956 1,996
Additions 702 137 0
Disposals 0 -99 0
Cost at 31 December 7,597 6,994 1,996
Depreciation and impairment losses at 1 January 3,240 4,121 1,946
Depreciation for the year 1,020 1,193 43
Reversal of depreciation on disposals for the year 0 -97 0
Depreciation and impairment losses at 31 December 4,260 5,217 1,989
Carrying amount at 31 December 3,337 1,777 7
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 46
6.3 LEASES
The Group has lease contracts for various items of of-
fice spaces, vehicles and other equipment used in its
operations. Leases of office spaces generally have
lease terms between five and ten years, while motor ve-
hicles and other equipment generally have lease terms
between one and four years.
The total cash outflows for leases amounted to EUR 1.7
million for the Group and the Parent in 2024 (2023: EUR
1.6 million for the Group and for the Parent).
The Group has signed agreements for the lease of office
buildings which have not yet commenced. The future
cash outflows for these leases can be found in note 8.2.
ACCOUNTING POLICIES
The Group leases various offices, warehouses, equip-
ment and vehicles.
Leases are recognised as a right-of-use asset and a cor-
responding liability at the date at which the leased as-
set is available for use by the Group. Lease liabilities
are initially recognised at the present value of future
lease payments including payments from extension or
purchase options that are considered reasonably cer-
tain to be exercised.
The lease liability is measured using the implicit bor-
rowing rate in the contracts or, when this is not availa-
ble, the Group’s average incremental borrowing rate at
the date of inception. Lease assets are depreciated over
a 2-10-year period.
Short-term leases and leases of low value of EUR five
thousand and below are accounted for as low-value-as-
sets and recognised as expenses in the income state-
ment on a straight-line basis over the lease term.
Subsequent to initial measurement, the liability will be
reduced with payments made and increased with inte-
rest. Lease payments are allocated between principal
and finance cost. The finance cost is charged to profit
or loss over the lease period to produce a constant peri-
odic rate of interest on the remaining balance of the lia-
bility for each period. Lease assets are measured at
cost comprising the following:
• the amount of the initial measurement of lease
liability
• any lease payments made at or before the com-
mencement date
The lease assets are depreciated using the straight-line
method over the shorter of the expected lease term and
the useful life of the underlying asset. The lease assets
are tested for impairment whenever there is an indica-
tion that the assets may be impaired. No impairment in-
dicators were identified at 31 December 2024.
CARRYING AMOUNT OF RIGHT-OF-USE ASSETS
Group Parent
EUR '000 2024 2023 2024 2023
Land and buildings 1,615 2,996 538 1,614
Motor vehicles 193 163 193 163
Total 1,808 3,159 731 1,777
AMOUNTS RECOGNISED IN THE INCOME STATEMENT
Group Parent
EUR '000 2024 2023 2024 2023
Depreciation of right-of-use assets 1,333 1,267 1,197 1,193
Interest on lease liabilities 175 128 29 47
Expenses relating to low-value leases 45 46 45 46
Total 1,553 1,441 1,271 1,286
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 47
6.4 INVESTMENTS IN SUBSIDIARIES
ACCOUNTING POLICIES
Share of profit in subsidiaries after tax
The separate line item ‘share of profit in subsidiaries af-
ter tax’ in the income statement includes the propor-
tionate share of the underlying entities’ profit after tax
for the year.
Investments in subsidiaries
The Parent Company has chosen to apply the equity
method as the measurement method, and investments in
subsidiaries are measured accordingly.
On initial recognition, investments in subsidiaries are
measured at cost plus transaction costs and included in
the line item ‘investments in subsidiaries’ in the balance
sheet.
The total net revaluation of investments in subsidiaries
is transferred upon distribution of profit to ‘reserve un-
der the equity method’ in equity. The reserve is reduced
by dividends distributed to the Parent Company and ad-
justed for other equity movements in the subsidiaries.
Subsidiaries with a negative net asset value are recog-
nised at EUR 0 and any receivables from them are writ-
ten down by the Parent Company’s share of the negative
net asset value. Any legal or constructive obligation of
the Parent Company to cover the negative balance of
the enterprise is recognised in provisions.
Investments in subsidiaries measured at net asset value
are subject to impairment test requirements if there is
any indication of impairment.
6.5 CURRENT ASSET INVESTMENTS
Current asset investment consists of time deposits. The
investments are made for the purpose of receiving cash
flows consisting solely of payments of principal and in-
terest to optimise the return of surplus liquidity and are
measured at amortised cost.
Parent
EUR '000 2024 2023
Cost at 1 January 71,668 9,281
Additions 6,000 62,387
Cost at 31 December 77,668 71,668
Value adjustments at 1 January 58,738 72,608
Exchange rate adjustments -8,745 -573
Net profit for the year -4,776 16,885
Dividend paid -47,026 -30,173
Disposal for the year 0 -5
Adjustments 0 -4
Value adjustments at 31 December -1,809 58,738
Carrying amount at 31 December 75,859 130,406
The financial statements of the Parent Company include:
Name
Share capital
Danske Commodities Albania Sh.p.k. Albania tALL 877,805 100%
Danske Commodities APAC Pte. Ltd. Singapore tSGD 2,000 100%
Danske Commodities Australia Pty Limited Australia tAUD 0 100%
Danske Commodities BH d.o.o. Bosnia and Herzegovina tBAM 20,561 100%
Danske Commodities Comercializadora de Energia Ltda Brazil tBRL 288,000 100%
Danske Commodities Deutschland Gmbh Germany tEUR 25 100%
Danske Commodities Kosovo SH.P.K. Kosovo tEUR 1 100%
Danske Commodities DOOEL Skopje North Macedonia tMKD 55,822 100%
Danske Commodities Sweden AB Sweden tSEK 50 100%
Danske Commodities Turkey Enerji Ticaret A.Ş. Turkey tTRY 61,700 100%
Danske Commodities Ukraine LLC Ukraine tUAH 229 100%
Danske Commodities UK Limited United Kingdom tGBP 0 100%
Votes and
ownership
Place of registered office
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 48
TAX
7.1 TAX ON PROFIT FOR THE YEAR
ACCOUNTING POLICIES
Tax for the year consists of current tax for the year and
deferred tax for the year as well as adjustments of tax
and deferred tax relating to prior years. The tax attribu-
table to the profit for the year is recognised in the in-
come statement, whereas the tax attributable to equity
transactions is recognised directly in equity.
Any changes in deferred tax due to changes to tax rates
are recognised in the income statement.
The Parent Company is subject to the Danish rules on
compulsory joint taxation of the Danish group enter-
prises. The tax effect of the joint taxation is allocated
to enterprises showing profit or loss in proportion to
their taxable incomes. The jointly taxed enterprises
have adopted the on-account taxation scheme.
7.2 DEFERRED TAX
Deferred tax and provision for deferred tax comprise all
temporary differences between the carrying amount and
the tax base of intangible assets, property, plant and
equipment, receivables and short-term debt.
Group Parent
EUR '000 2024 2023 2024 2023
Current tax for the year 43,676 95,484 41,969 91,596
Deferred tax for the year 3,545 3,943 3,659 2,828
Adjustment of tax relating to prior years 5,118 -69 4,553 0
Adjustment of deferred tax relating to prior years 388 -3,279 610 -3,279
Total tax for the year 52,727 96,079 50,791 91,145
The total contribution for the year is specified as follows:
Profit for the year before tax 202,030 453,199 200,094 448,265
Adjustments (non-deductible) 11,038 -2,198 7,305 -19,059
Tax on profit for the year 47,221 99,427 45,628 94,424
Effective tax rate 23.4% 21.9% 22.8% 21.1%
Tax on profit for the year can be explained as follows:
Calculated tax (22%) 44,447 99,704 44,021 98,618
Calculated tax in foreign subsidiaries in relation to 22% 346 207 0 0
Non-deductible costs and non-taxable income 2,428 -484 1,607 -4,194
Effective tax for the year 47,221 99,427 45,628 94,424
Group Parent
EUR '000 2024 2023 2024 2023
Deferred tax at 1 January -14,271 -14,935 -14,376 -13,925
Deferred tax recognised in profit for the year 3,933 664 4,269 -451
Deferred tax 31 December -10,338 -14,271 -10,107 -14,376
The items are recognised in the balance sheet as follows:
Deferred tax asset -10,338 -14,376 -10,107 -14,376
Deferred tax liability 0 105 0 0
Total -10,338 -14,271 -10,107 -14,376
Deferred tax can be explained as follows:
Property, plant and equipment -417 -384 -417 -384
Intangible assets 2,582 2,558 2,802 2,558
Current liabilities -2,977 -3,128 -2,977 -3,128
Derivative financial instruments -9,214 -13,308 -9,214 -13,413
Losses available for offsetting against future taxable income 0 0 0 0
Other -312 -9 -301 -9
Total -10,338 -14,271 -10,107 -14,376
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 49
7.2 DEFERRED TAX – CONTINUED
ACCOUNTING POLICIES
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in
the balance sheet at the amount calculated on the ba-
sis of the expected taxable income for the year adjusted
for tax on taxable incomes for prior years and tax paid
on account. Tax receivables and liabilities are offset if
there is a legally enforceable right of set-off and an in-
tention to settle on a net basis or simultaneously.
Joint taxation contributions payable and receivable are
recognised in the balance sheet as corporation tax re-
ceivable or corporation tax payable.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary
differences between the carrying amount and the tax
base of assets and liabilities.
Deferred tax assets, including the tax base of tax loss
carry-forwards, are measured at the value at which the
asset is expected to be realised, either by elimination in
tax on future earnings or by set-off against deferred tax
liabilities.
Deferred tax assets and liabilities are offset within the
same legal tax entity and jurisdiction.
Deferred tax is measured according to the tax rules and
at the tax rates applicable in the respective countries
at the balance sheet date when the deferred tax is ex-
pected to crystallise as current tax.
OTHER NOTES
8.1 AUDITORS’ FEES
Fees to statutory auditors comprise fees to auditors ap-
pointed by the Company at the Annual General Meeting.
Assurance engagements comprise of services related to
other reporting requirements to group auditors.
8.2 OTHER COMMITMENTS AND CONTINGENT LIABILITIES
GAS STORAGES AND GAS CAPACITIES
The Group has entered into various long-term agree-
ments for storage of gas and gas capacities. The agree-
ments ensure the rights to the capacity or volumes in
question but also impose on the Group the obligation to
pay for the agreed-upon service, irrespective of actual
use.
The terms of the contracts vary, with durations of up to
six years.
GUARANTEES
The Parent Company has provided guarantees and secu-
rities for related parties to third parties with a carrying
amount of EUR 47,064 thousand (2023: EUR 27,341 thou-
sand).
OTHER COMMITMENTS
The Group has a lease contract relating to a new office
building that has not yet commenced as of 31 December
2024. The future lease payments for the non-cancellable
lease contract are EUR 1,046 million within one year,
EUR 13,320 million within five years and EUR 14,251 mil-
lion thereafter.
The Danish group enterprises are jointly and severally li-
able for tax on the taxable income, etc. in the joint tax-
ation. Danske Commodities A/S is the administration
company of the jointly taxed companies. Furthermore,
the Danish group enterprises are jointly and severally li-
able for Danish withholding taxes such as tax on divi-
dend, royalty and interests. Any subsequent adjustments
to corporation tax and withholding taxes may increase
the Company’s obligations.
Group Parent
EUR '000 2024 2023 2024 2023
Statutory audit 1,252 1,273 1,252 1,273
Assurance engagements 188 177 188 177
Total 1,440 1,450 1,440 1,450
MATURITY OF GAS STORAGE AND GAS CAPACITY AGREEMENTS
Group and Parent
EUR '000
2025 63,828
2026 37,296
2027 22,020
2028 16,435
2029 4,878
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 50
8.3 STANDARDS ISSUED BUT NOT YET EFFECTIVE
The new and amended standards and interpretations
that are issued, but not yet effective, up to the date of
issuance of the Group’s financial statements are dis-
closed below. The Group intends to adopt these new and
amended standards and interpretations, if applicable,
when they become effective.
IFRS 18: PRESENTATION AND DISCLOSURE IN FINANCIAL
STATEMENTS
In April 2024, the IASB issued IFRS 18, which replaces
IAS 1 Presentation of Financial Statements. IFRS 18
introduces new requirements for presentation within the
statement of profit or loss, including specified totals
and subtotals. Furthermore, entities are required to
classify all income and expenses within the statement
of profit or loss into one of five categories: operating,
investing, financing, income taxes and discontinued op-
erations, whereof the first three are new.
It also requires disclosure of newly defined manage-
ment-defined performance measures, subtotals of in-
come and expenses, and includes new requirements for
aggregation and disaggregation of financial infor-
mation based on the identified ‘roles’ of the primary fi-
nancial statements (PFS) and the notes.
In addition, narrow-scope amendments have been made
to IAS 7 Statement of Cash Flows, which include chang-
ing the starting point for determining cash flows from
operations under the indirect method, from ‘profit or
loss’ to ‘operating profit or loss’ and removing the op-
tionality around classification of cash flows from divi-
dends and interest. In addition, there are consequential
amendments to several other standards.
IFRS 18, and the amendments to the other standards, are
effective for reporting periods beginning on or after 1
January 2027, but earlier application is permitted and
must be disclosed. IFRS 18 will apply retrospectively.
The Group is currently working to identify all impacts
the amendments will have on the primary financial
statements and notes to the financial statements.
IFRS 19: SUBSIDIARIES WITHOUT PUBLIC ACCOUNTABIL-
ITY: DISCLOSURES
In May 2024, the IASB issued IFRS 19, which allows eligi-
ble entities to elect to apply its reduced disclosure
requirements while still applying the recognition, meas-
urement and presentation requirements in other IFRS
accounting standards. To be eligible, at the end of the
reporting period, an entity must be a subsidiary as
defined in IFRS 10, cannot have public accountability
and must have a parent (ultimate or intermediate) that
prepares consolidated financial statements, available
for public use, which comply with IFRS accounting
standards.
IFRS 19 will become effective for reporting periods be-
ginning on or after 1 January 2027, with early applica-
tion permitted.
The amendments are not expected to have a material
impact on the Group’s financial statements.
CLASSIFICATION AND MEASUREMENT OF FINANCIAL IN-
STRUMENTS: AMENDMENTS TO IFRS 9 AND IFRS 7
In May 2024, the IASB issued amendments to IFRS 9 and
IFRS 7.
The amendments clarify that a financial liability is de-
recognised on the ‘settlement date’, i.e., when the re-
lated obligation is discharged, cancelled, expires or the
liability otherwise qualifies for derecognition. It also
introduces an accounting policy option to derecognise
financial liabilities that are settled through an elec-
tronic payment system before settlement date if certain
conditions are met.
The amendments will become effective for reporting pe-
riods beginning on or after 1 January 2026, with early
application permitted.
The amendments are not expected to have a material
impact on the Group’s financial statements.
CONTRACTS REFERENCING NATURE-DEPENDENT ELEC-
TRICITY: AMENDMENTS TO IFRS 9 AND IFRS 7
In December 2024, the IASB issued amendments to IFRS
9 and IFRS 7, to help companies better report the finan-
cial effects of power purchase agreements (PPAs).
To allow companies to better reflect these contracts in
the financial statements, the IASB has made amend-
ments to IFRS 9 Financial Instruments and IFRS 7 Finan-
cial Instruments: Disclosures.
The amendments include:
• clarifying the application of the ‘own-use’ re-
quirements;
• permitting hedge accounting if these contracts
are used as hedging instruments; and
• adding new disclosure requirements to enable
investors to understand the effect of these con-
tracts on a company’s financial performance
and cash flows.
The amendments will become effective for reporting pe-
riods beginning on or after 1 January 2026, with early
application permitted.
The Group is currently working to identify all impacts
the amendments will have on the primary financial
statements and notes to the financial statements.
Annual Report 2024 NOTES TO FINANCIAL STATEMENTS 51
8.4 EVENTS AFTER THE BALANCE SHEET DATE
On 20 January 2025, the Group received a decision from
the French Energy Regulatory Commission (CRE) regard-
ing an ongoing legal matter. A provision of EUR 8 million
has been made as of 31 December 2024. For more infor-
mation, refer to note 5.6.
8.5 DEFINITIONS
DEFINITIONS OF FINANCIAL RATIOS
Average number of employees: calculated as average number of full-time employees.
Number of employees, end of year: calculated as number of employees at end of year.
OTHER DEFINITIONS
Danske Commodities refers to the Group.
Danske Commodities A/S refers to the Parent Company.
IFRS Accounting Standards is used synonymously with IFRS® Accounting Standards.
Equity ratio
=
Equity x 100
Total assets
Cost to income
=
(Gross profit - EBIT) x 100
Gross profit
Return on capital employed
=
EBIT x 100
Average total equity plus net interest bearing debt