Annual Report
2023
Centrica Energy Trading A/S | CVR: 20293195
The Annual Report has been adopted and approved on
the Annual General Meeting on June 12th, 2024
Chairman of the General Meeting
CVR no.: 20 29 31 95
Management review
3 Letter from the CEO & Senior Management
4 Our Business Model
5 Centrica Energy Europe
6 Five-Year Financial Summary
7 Financial Review
7 Income statement
7 Balance Sheet
7 Cash Flow Statement
7 Outlook
8 Risk Management
8 Market risk
8 Liquidity risk
9 Credit risk
9 Foreign Exchange Risk
10 Reporting under Section 99 of
the Danish Financial Statement Act
10 Sustainability
10 Statutory report on gender diversity
11 Data Ethics & GDPR
Statements
13 Management statement
14 Independent auditor's report
Contents
Financial statements
Group
18 Income statement
18 Statement of comprehensive income
19 Balance sheet
21 Statement of changes in equity
22 Cash flow statement
23 Notes overview
Parent company
52 Income statement
52 Statement of comprehensive income
53 Balance sheet
55 Statement of changes in equity
56 Cash flow statement
57 Notes overview
Centrica Energy Trading A/S | Annual Report 2023 2
Management review
Moving out of a tumultuous 2022, where supply
constraints in European energy markets pushed
prices to historical heights – 2023 saw lower
commodity prices and volatility, with mild weather,
reduced energy demand, and high gas storage
levels stabilising markets.
We’re proud to deliver solid financial results in 2023.
Standing strong under turbulent market conditions
in 2022, our robust and diversified business model
and portfolio anchored in physical assets has
continued to deliver value in 2023. Our investments
in our people and capabilities leave us well-po-
sitioned to capture value from key global trends
including decarbonisation and globalisation of gas.
Through the year we continued to make significant
investments in our people and digitalisation agenda
– evolving the precision of our forecasts, trading
efficiency, and execution speed. Pushing enormous
volumes of data into in-house developed algorithms
and technology platforms designed to optimise
solar, wind, and grid-scale batteries, we have
expanded on the renewable services and solutions
we provide to the market, helping move production
and flexibility onto a more sustainable path.
Energising a greener, fairer future
For the past two-decades we’ve ensured that
renewable power flows to where and when its
needed. In 2023, we broke ground in several new
markets whilst launching an array of innovative
renewable energy products. Delivering multiple
Corporate PPAs in Germany, we’re sourcing over
193GWh of renewable power every year to major
transport and infrastructure providers, supporting
their delivery on net zero procurement strategies.
We've also delivered PPAs in the rapidly developing
Baltic markets, where our presence has grown to
count 168MW solar and wind assets on contract.
Across the UK and Belgium, our optimisation teams
have secured best-in-class performance on our
battery storage portfolio, which now counts over
200MW on contract. Drawing on long-standing
experience in Danish biomethane markets, we’ve
evolved our value proposition on renewable GPAs
to capture new markets, signing our first long-term
renewable Gas Purchase Agreement in the UK.
The strength of Centrica plc is reflected in Centrica
Energy and the unique opportunities that the inte-
gration of retail, optimisation, and infrastructure port-
folios managed across the group unlock, allowing
us to de-risk operations whilst enabling value
creation for other businesses in the Group.
We’re a Great Place to Work, for all
During 2023 we were not only recertified as a Great
Place to Work, but also recognised as one of the Best
Workplaces in Denmark for women. We’re incredibly
proud of these achievements, the culture we have
built, and the unwavering engagement and dedica-
tion of our people. Europe’s green transition requires
all-hands-on-deck, and that means we need to
champion an inclusive and diverse workplace where
everyone has the means to succeed. Fact is that
women remain underrepresented in our sector, why
it has been important for us to support the Centrica
Women’s Network in spearheading a number of initi-
atives seeking to increase both representation and
opportunities for women in energy.
We’re pleased with our contributions to society,
but we’ve wanted to find new ways to support and
take responsibility for the society and communities
we operate in. Under our volunteering scheme our
energy movers across all locations delivered more
than 1,400 volunteering hours in 2023, and we
sponsored the Ronald McDonald House Charity with
equipment and funding to support their mission of
providing a home away from home. We also kicked
off our sponsorship with AaB Women, helping level
the local playing field for women’s sports.
We are energy movers by nature
In the continued journey of our world-class asset
backed energy trading and logistics business, we’re
focused on our ability to support the buildout and
management of renewable generation and storage
technologies, whilst enabling efficient and trans-
parent energy markets. Leveraging our scalable
platforms and solutions we will continue to expand
our asset portfolio and capture new markets and
technologies. Our solid financial results, opportuni-
ties in the green transition, and the dedication of our
energy movers ensures that we’re well-positioned
for future growth and success.
Letter from the CEO &
Senior Management
During 2023 energy markets have continued to stabilise.
Management review
Centrica Energy Trading A/S | Annual Report 2023 3
Based on extensive experience in liberalised Nordic
and UK markets, we have built and matured a
successful energy trading business that operates
within two principal domains: Renewable Energy
Trading & Optimisation (RET&O) and Power & Gas
Trading.
Our RET&O business services independent
power producers, flexible asset owners, as well as
suppliers and large corporate offtakers in wholesale
energy markets – providing market access, risk
management, and energy optimisation solutions
supported by proprietary sophisticated software
and automated platforms. Our RET&O business
activities include:
• Structuring of Corporate and Renewable PPAs,
where we currently manage +16GW of renew-
able and flexible assets across major European
markets.
• Offtake and trading of renewable energy produc-
tion, leveraging advanced quantitative forecasting
models, in-house meterologists, and our state-
of-the-art trading setup to efficiently trade and
optimise the variable production from renewable
energy sources until moments before delivery.
• Optimisation of flexible energy assets, including
batteries, electrolysers, and combined heat-
and-power plants through application of models,
algorithms, and digital platforms to support grid
balancing and efficiency in balancing and reserve
markets.
Our Business Model
We're a world-class asset-backed energy trading and
logistics business, operating out of eight offices across all
time zones to move energy from source to use.
• Offtake, management, and trading of bioenergy
and green gasses, alongside sourcing, manage-
ment and trading of renewable and bioenergy
guarantees of origin or certificates.
Our Power & Gas Trading setup centres around
asset-backed trading for gas, short-term power
trading, and power capacity optimisation. We
leverage the complementary nature of our power
trading business to enable market access and risk
management capabilities that allow us to expand
our renewable trading and optimisation business to
new markets.
• Our gas trading teams actively trade gas across
20 European markets, specialising in wholesale
trading, asset optimisation, and cross-border
trading for gas. We trade standard and structured
products on the over-the-counter (OTC) markets
and exchanges, alongside gas transport and stor-
ages in secondary markets, supporting efficient
security of gas supply across Europe.
• Our power trading teams operate on all major
exchanges and the OTC market, trading in the
short-term, day-ahead, and within-day markets,
as well as in forward markets, covering daily to
yearly contracts with futures, options and struc-
tured products.
• Our Algorithmic Research and Development
department develops and implements algorithms,
models, and technical platforms that enable
digitalisation of our trading operations across all
commercial pillars of the business.
Management review
Centrica Energy Trading A/S | Annual Report 2023 4
Centrica Energy is the risk management, optimisation,
and trading arm of Centrica plc and responsible for
managing commodity risk, providing wholesale market
access, and sourcing physical energy on behalf of the
Centrica Group’s energy supply activities.
During 2023, we finalised the strategic intragroup
acquisition of Centrica Business Solutions Belgium
NV to strengthen our capabilities in renewable
energy trading in short-term power markets with
Centrica Energy Europe
Centrica Energy Europe carries out activities
within the larger business unit of Centrica plc:
Centrica Energy.
new aggregation and market optimisation capa-
bilities. Integrating Centrica Business Solutions
Belgium NV as a subsidiary to Centrica Energy
Trading A/S has allowed us to evolve new and
powerful market propositions for a variety of energy
storage and generation technologies. Centrica
Business Solutions Belgium NV and subsidiaries are
included in the consolidated financial statements
from when control over the entities was obtained on
January 1 2023.
CENTRICA ENERGY TRADING A/S
CENTRICA ENERGY TRADING CZECH REPUBLICCENTRICA ENERGY TRADING NORWAY
CENTRICA ENERGY TRADING SLOVAKIA
CENTRICA ENERGY TRADING NETHERLANDS
VINDPARK KEBLOWO APS
Hobro, Denmark
50%
CENTRICA BUSINESS SOLUTIONS BELGIUM NV
Antwerp, Belgium, 100%
CENTRICA BUSINESS SOLUTIONS
UK OPTIMISATION LTD
Windsor, United Kingdom
100%
CENTRICA BUSINESS SOLUTIONS
FRANCE SAS
Neuilly-Sur-Seine, France
100%
NEAS INVEST A/S
Aalborg, Denmark
100%
NEAS ENERGY LTD.
Windsor, United Kingdom
100%
CENTRICA ENERGY
TRADING GMBH.
Hamburg, Germany
100%
CENTRICA ENERGY
TRADING PTE. LTD.
Singapore
100%
GROUP ENTERPRISES BRANCHES GROUPASSOCIATES
Centrica Energy Europe
Management review
Centrica Energy Trading A/S | Annual Report 2023 5
Five-Year Financial Summary
Amounts in tDKK 2023 2022 2021 2020* 2019*
Financial highlights
Income statement
Trading income and revenue 22,478,368 35,702,027 14,236,241 65,008,412 77,826,081
Gross profit 4,260,836 6,767,224 934,913 648,486 506,104
Profit before amortisation and depreciation 3,258,117 5,917,411 552,126 298,727 197,202
Operating profit 3,209,762 5,885,478 522,560 268,520 168,390
Results from net financials 237,002 -53,614 103,654 44,035 88,855
Profit before tax 3,446,764 5,831,864 626,214 312,555 257,245
Profit for the year 2,656,367 4,655,785 490,232 246,859 214,361
Balance sheet
Assets 14,855,794 24,455,372 17,964,132 4,258,949 4,379,284
Investment in development projects 26,694 28,805 20,765 19,882 34,314
Investment in property, plant
and equipment 51,039 1,885 1,480 2,407 25,852
Cash and cash equivalents 1,449,394 3,340,236 990,004 537,488 275,467
Share capital 123,507 123,507 123,507 123,507 123,507
Equity 6,304,641 6,659,421 1,982,100 1,322,518 1,081,164
Current liabilities 7,010,965 15,219,463 15,140,938 2,762,846 3,146,798
Cash flow
Net cash flow from:
Operating activities 2,036,714 5,226,556 -1,575,751 279,478 15,035
Investment activities -27,745 -30,690 -22,245 -25,446 -49,614
Financing activities -3,888,664 -2,867,170 2,067,129 -855,770 -233,790
Net foreign exchange difference -11,147 21,536 6,843 -5,509 0
Cash flow for the year -1,890,842 2,350,232 475,976 -607,247 -268,369
% 2023 2022 2021 2020 2019
Financial ratios
Profitability
Return on equity 41.0% 107.8% 29.7% 20.5% 22.0%
Profit margin 14.3% 16.5% 3.7% 0.4% 0.2%
Solvency ratio
Equity ratio 42.4% 27.2% 11.0% 31.1% 24.7%
* The above listed comparative figures and ratios have not been adapted to reflect the following:
a) The Group has for the year ended 31 December 2022 prepared the financial statements in accordance with IFRS for the
first time. Comparative figures and ratios for 2019 to 2020 have not been adapted to reflect changes in accounting principles
from Danish GAAP to IFRS. For further description refer to note 4.
b) The cost formula for measurement of gas inventories have been changed from weighted average cost to FIFO-principle
for the year ended 31 December 2021. Comparative figures and ratios for 2019 to 2020 have not been adapted to reflect
this change in accounting principles.
c) Centrica Energy A/S has for the year ended 31 December 2020 presented a consolidated financial statement for the first
time. Comparative figures and ratios for 2019 only include the parent company, whereas 2020 to 2023 represent
consolidated group figures and ratios.
Management review
Centrica Energy Trading A/S | Annual Report 2023 6
Income statement
Revenue
Revenue in 2023 was 22,478 mDKK compared to
35,702 mDKK in 2022. The primary driver behind
this decrease was lower commodity prices and
volatility as markets continued to stabilise through
2023.
Gross Profit
Gross profit in 2023 was 4,261 mDKK compared
to 6,767 mDKK in 2022. Through the year our
robust and diversified business model allowed us
to capture value as market conditions stabilised.
Resultingly, we have exceeded our expectations
for gross profit (1,500 mDKK – 2,000 mDKK) and
operating profit (800 mDKK – 1,300 mDKK) as
previously described in our 2022 Annual Report
Outlook for 2023.
Operating profit
Operating profit in 2023 was 3,210 mDKK
compared to 5,885 mDKK in 2022. The main driver
of the reduction in operating profit is the reduction in
gross profit.
Staff costs
Average salary costs per employee in 2023 were 1.4
mDKK compared to 1.9 mDKK in 2022. Lower staff
costs were driven by lower performance pay-outs
linked to financial performance.
Balance Sheet
Inventories
Lower gas prices and decreased gas volumes have
resulted in a decline in the value of gas storages
from 2,453 mDKK at 2022 year-end to 1,133 mDKK
at 2023 year-end.
Other Balance Sheet Items
In general, other balance sheet items have
decreased in price from 2022 year-end to 2023
year-end due to lower commodity prices.
Cash Flow Statement
Total net cash flow for 2023 amounted to a cash
outflow of 1,891 mDKK compared to a cash inflow
of 2,350 mDKK in 2022. The main drivers behind
the decreased net cash flow are lower operating
profit, cash outflow for paid corporation tax, cash
outflow from dividend payment and cash outflow
from net change in group cash pool arrangements.
Total net cash flow for the year of -1,891 mDKK
can be summarised as operating profit of 3,210
mDKK adjusted for cash outflow of 1,265 mDKK
from corporate income tax, cash inflow of 236
mDKK from net interest, cash outflow of 193 mDKK
from change in net working capital, cash outflow
of 28 mDKK from investing activities, cash outflow
of 3,889 mDKK from financial activities, and cash
inflow of 38 mDKK from other adjustments.
Outlook
Continuing the trend from 2023, prices and vola-
tility in energy markets have continued to stabilise
into 2024. Whilst market conditions have stabilised,
our robust and diversified business model has
continued to capture opportunities and deliver
value. We are positioned to deliver solid financial
performance in 2024, with financial forecasts indi-
cating a Gross Profit of 1,500 mDKK – 2,000 mDKK
and Operating Profit of 500 mDKK – 1,000 mDKK.
Financial Review
Standing strong under turbulent market conditions in 2022, our
robust and diversified business model has continued to capture
opportunities and deliver value through 2023.
The above review is given on Group level. As the main activity in the Group resides in the Parent company, the above review applies to the
Parent company as well.
Management review
Centrica Energy Trading A/S | Annual Report 2023 7
The primary risks we are exposed to include market
risk, liquidity risk, credit risk, and foreign exchange
risk. See note 18 for further specifications and anal-
ysis of primary risks.
We follow Centrica Energy Risk Mandate, which is
designed to identify, manage, and mitigate these
risks.
We adopt a conservative approach to managing our
liquidity position and balance sheet strength.
Risks are identified and assessed to determine
impact and likelihood, with an appropriate risk
response subsequently evaluated and implemented.
Possible risk responses are:
• Terminate: Cease the activity that creates the risk
• Tolerate: Accept a level of risk
• Treat: Act to reduce the likelihood or impact of risk
Market risk
Market risk is defined as the risk associated with
potential future price moves of commodities and
other products traded by Centrica Energy Europe
or with volume forecasting uncertainty, to the extent
that Centrica Energy Europe's present or future
profitability is impacted.
Market risks are managed in line with our Market
Risk Directive. The Risk Directive details the
different roles and responsibilities for managing
risks within the Group. A three lines of defence
model is used. The commercial function is respon-
sible for risks associated with their activities, and
acts as a first line of defence. The risk function
provides independent risk oversight and control,
and act as a second line of defence, while the
internal audit function acts as a third line of defence,
giving independent assurance that risks are being
appropriately managed.
The risk directive details the risk appetite, which
sets out the overall risk limits. To monitor and
manage market risk, Centrica Energy Europe uses
risk capital allocation. The allocation of risk capital
helps management evaluate development of
Centrica Energy Europe's risk profile.
All limits and sub-limits are reviewed regularly,
to ensure they continue to align with the Groups
risk appetite. Clear escalation routes are outlined
for each function responsible for managing risk.
Exposures are monitored continuously by the
risk function, operating stop-loss and drawdown
limits, ensuring immediate reaction if any limits are
violated. The risk function performs additional stress
and scenario testing, and uses several additional
risk measures, such as Value-at-Risk as an integral
part of the risk management.
Liquidity risk
Liquidity risk is the risk that we are unable to meet
our financial obligations as they fall due.
The liquidity risk for Centrica Energy Europe is
limited. The Group has historically generated posi-
tive operating cash flows, and holds significant
committed facilities as well as cash on deposit to
ensure sufficient liquidity headroom at all points
in the seasonal trading cycle of the business.
Centrica Energy Europe is furthermore owned by
Centrica Plc, ensuring access to additional funding
to meet short-term liquidity needs during high price
scenarios.
Centrica Energy has a dedicated treasury risk
management team, monitoring the overall liquidity
on a daily basis. The Treasury team are also
responsible for forecasting of expected future cash
flows. Stress testing is performed daily, estimating
possible liquidity scenarios, to help manage liquidity
reserves, and ensure sufficient reserves are avail-
able at all times.
Risk Management
Centrica Energy Europe's business model generates
exposure to a variety of financial risks, and managing
these risks is integral to our business model.
Management review
Centrica Energy Trading A/S | Annual Report 2023 8
Credit risk
Credit risk is the risk of loss associated with a coun-
terparty’s inability or failure to discharge its obliga-
tions under a contract. Centrica Energy Europe is
exposed to credit risks in the market through both
Power Purchase Agreements and trading activities.
Credit risk is governed by Centrica Group Credit
Risk Policy. The overarching Centrica Group policy
covers key risk measurement indicators, the credit
scoring of counterparties through external ratings,
scoring tools and frequency, the DoA structure
based on limits and ratings and derived monitoring
of excesses and credit mitigation instruments.
The creditworthiness of a potential counterparty
is assessed before the Group enters into any
contracts through the use of external credit ratings
and scoring tools. If deemed necessary security is
requested from the counterparty.
The risk function monitors the risk measurement
indicators on a current and forward basis where
applicable and produces reports on a daily, weekly,
and monthly basis. The risk function can enforce
limits by imposing restrictions on certain counter-
parties. Similar to market risk, there are prescriptive
standards for reporting limit breaches to stake-
holders ranging from senior business unit managers
to Group level senior leaders depending on the type
and magnitude of the breach. Credit risk policies
and standards are reviewed annually.
Foreign Exchange Risk
Foreign exchange risk is the risk of loss on the fair
value or future cash flows of exposures, which fluc-
tuates due to changes in foreign exchange rates.
Centrica Energy Europe exposure to foreign
exchange risks occurs primarily from trading activi-
ties which are denominated in other currencies than
the functional currency of the Group. See note 18
for a sensitivity analysis of the effect of reasonable
changes in foreign exchange rates.
The treasury risk management team monitors expo-
sures daily, ensuring exposure does not exceed
the limits set out in the Hedging Policy. Foreign
exchange risk is not a part of Centrica Energy
Europe’s core business, and therefore our foreign
exchange exposure is limited, and risk is insignifi-
cant.
Management review
Centrica Energy Trading A/S | Annual Report 2023 9
Sustainability
Sustainable Development Goals
The United Nations 17 Sustainable Development
Goals continue to guide our purpose of delivering
on greener, fairer futures. We’re determined to make
our contribution by enabling a more sustainable
future, where energy is no longer a leading contrib-
utor to climate change. We’re focused on positively
impacting availability of affordable and clean energy
(SDG 7) through delivering solutions that introduce
new green energy to the grid and contribute to
fighting climate change (SDG 13).
Responsible Business measures
As a part of the Centrica Group, Centrica Energy
Europe’s reporting on corporate policies and annual
review of progress are covered by Centrica plc. All
disclosure points required under section 99(a) of
the Danish Financial Statements Act are covered
in Centrica plc's annual report (pages 38-55 and
83). Centrica reviews a number of corporate func-
tions and Corporate Citizenship in the group’s
Annual Report and a number of reports/updates on
Responsible Business measures. Information and
data on Centrica’s performance within Corporate
Responsibility can be found in the Centrica Annual
Report.
1
Reporting under Section 99
of the Danish Financial
Statement Act
Management review
Centrica Energy Trading A/S | Annual Report 2023 10
Management review
Centrica Energy Trading A/S | Annual Report 2023 11
Management statement
Executive Board
Board of Directors
Member of the Board Member of the Board
(Employee elected ) (Employee elected )
Statements
Centrica Energy Trading A/S | Annual Report 2023 13
Independent auditor's report
Statements
Centrica Energy Trading A/S | Annual Report 2023 14
Statements
Centrica Energy Trading A/S | Annual Report 2023 15
CVR No. 33 9 6 3 5 5 6
I
dentification No (MNE) mne 1 167 1
Identification No (MNE) mne 4279 3
Statements
Centrica Energy Trading A/S | Annual Report 2023 16
Income statement
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Trading income and revenue 5 22,478,368 35,702,027
Cost of sales -18,217,532 -28,934,803
Gross profit 4,260,836 6,767,224
Other operating income 52,388 21,613
Other external expenses -390,678 -179,456
Staff costs 6 -664,429 -691,970
Profit before amortisation and depreciation 3,258,117 5,917,411
Depreciation, amortisation and impairment losses -48,355 -31,933
Operating profit 3,209,762 5,885,478
Income from investments in associates using the equity method 816 1,028
Financial income 7 339,877 24,007
Financial expenses 8 -103,691 -78,649
Profit before tax 3,446,764 5,831,864
Tax on profit 9 -790,397 -1,176,079
Profit for the year 2,656,367 4,655,785
Statement of
comprehensive income
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Profit for the year 2,656,367 4,655,785
Other comprehensive income
Items that will be or have been reclassified to the Income Statement:
Exchange differences on translation of foreign operations -11,147 21,536
Other comprehensive income, net of taxation -11,147 21,536
Total comprehensive income for the year 2,645,220 4,677,321
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 18
Balance sheet
31.12.2023
Assets
Amounts in tDKK Note 2023 2022
Development projects 75,518 61,795
Contractual rights 172 0
Development projects in progress 34,696 21,303
Intangible assets 10 110,386 83,098
Land and buildings 108,430 111,671
Leasehold improvements 719 0
Plant and equipment 54,404 6,735
Plant and equipment in progress 4 0
Tangible assets 11 163,557 118,406
Investments in associates 8,538 7,704
Investments accounted for using the equity method 8,538 7,704
Non-current assets 282,481 209,208
Inventories 12 1,329,594 2,552,725
Trade receivables 2,815,164 4,418,027
Other receivables 118,298 42,309
Deposits related to trading 1,047,401 2,090,388
Receivables from group enterprises 4,342,007 3,706,447
Receivables from associates 3,882 5,425
Prepayments 84,709 151,025
Derivative financial instruments 17,18 3,382,864 7,939,582
Cash and cash equivalents 1,449,394 3,340,236
Current assets 14,573,313 24,246,164
Assets 14,855,794 24,455,372
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 19
Balance sheet
31.12.2023
Equity and liabilities
Amounts in tDKK Note 2023 2022
Share capital 123,507 123,507
Foreign currency translation reserve 11,733 22,880
Retained earnings 6,169,401 6,513,034
Equity 6,304,641 6,659,421
Provision for deferred tax 9 7,440 9,041
Derivative financial instruments 17,18 1,353,183 2,547,253
Debt to group enterprises 159,493 0
Other payables 13 20,072 20,194
Non-current liabilities 1,540,188 2,576,488
Trade payables 17 3,322,381 5,226,007
Other payables 392,602 453,302
Deposits related to trading 341,790 3,162,595
Debt to group enterprises 280,027 10,475
Onerous contract provisions 14 192,050 0
Other provisions 15 3,078 22,504
Derivative financial instruments 17,18 1,737,370 5,148,334
Income tax payable 722,031 1,185,071
Deferred income 19,636 11,175
Current liabilities 7,010,965 15,219,463
Liabilities 8,551,153 17,795,951
Equity and liabilities 14,855,794 24,455,372
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 20
Statement of changes in equity
Amounts in tDKK
Share
capital
Reserve for
currency
translation
Extraordinary
dividend
payment
Retained
earnings Total
2023
Balance as of 01.01.2023 123,507 22,880 0 6,513,034 6,659,421
Dividend payment in the year 0 0 -3,000,000 0 -3,000,000
Profit/loss for the year 0 0 3,000,000 -343,633 2,656,367
Other comprehensive income for the year 0 -11,147 0 0 -11,147
Total comprehensive income for the year 0 -11,147 3,000,000 -343,633 2,645,220
Balance as of 31.12.2023 123,507 11,733 0 6,169,401 6,304,641
Amounts in tDKK
Share
capital
Reserve for
currency
translation
Retained
earnings Total
2022
Balance as of 01.01.2022 123,507 1,344 1,857,249 1,982,100
Profit/loss for the year 0 0 4,655,785 4,655,785
Other comprehensive income for the year 0 21,536 0 21,536
Total comprehensive income for the year 0 21,536 4,655,785 4,677,321
Balance as of 31.12.2022 123,507 22,880 6,513,034 6,659,421
The share capital consists of 123,507,152 shares of a nominal face value of DKK 1 each (fully paid in at an
average price at 1.26).
No shares carry special rights.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 21
Cash flow statement
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Operating profit 3,209,762 5,885,478
Depreciation, amortisation and impairment losses 48,355 31,937
Operating profit adjusted for non-liquid items 3,258,117 5,917,415
Financial income received 339,877 24,007
Financial expenses paid -103,691 -78,649
Corporation tax paid -1,264,777 -141,497
Changes in net working capital:
Inventories 1,223,131 -873,977
Collateral -1,777,818 2,813,446
Derivative financial instruments 1,145,754 -742,928
Receivables 1,910,318 523,724
Payables -2,694,197 -2,214,985
Net cash flow from operating activities 2,036,714 5,226,556
Investment in non-current assets:
Purchase and development of intangible assets -26,694 -28,805
Purchase of property, plant and equipment -51,039 -1,885
Purchase of businesses, net of cash acquired* 49,988 0
Net cash flow from investing activities -27,745 -30,690
Dividends paid -3,000,000 0
Net change in group cashpool arrangements -888,664 -2,867,170
Net cash flow from financial activities -3,888,664 -2,867,170
Net foreign exchange difference -11,147 21,536
Total net cash flow for the year -1,890,842 2,350,232
Cash at the beginning of the year 3,340,236 990,004
Cash at the end of the year 1,449,394 3,340,236
Cash at end of year specified as follows:
Cash 1,449,394 3,340,236
Total 1,449,394 3,340,236
* Purchase price for acquisition of the business was 32,783 mDKK paid in cash. Taken over in the purchase affecting the cash flow statement are
82,771 mDKK cash and cash equivalents, receivables of 62,481 mDKK, payables of 146,631 mDKK and tax receivables of 9,739 mDKK.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 22
Notes overview
1 General information .......................................................... 24
2 Basis of preparation and summary of significant new accounting policies
and reporting changes ........................................................ 24
3 Critical accounting judgements and key sources of estimation uncertainty .................. 25
4 Summary of significant accounting policies ......................................... 26
5 Trading income and revenue .................................................... 31
6 Staff costs ................................................................. 31
7 Financial income ............................................................ 32
8 Financial expenses ........................................................... 32
9 Tax on profit from ordinary activities .............................................. 32
10 Intangible assets ............................................................ 33
11 Tangible assets ............................................................. 34
12 Inventories ................................................................. 35
13 Other payables (non-current) ................................................... 35
14 Onerous contract provisions .................................................... 35
15 Other provisions ............................................................. 35
16 Commitments, lease obligations and guarantees .................................... 36
17 Financial assets and liabilities by category ......................................... 37
18 Financial risk management ..................................................... 38
19 Fair value of financial instruments ................................................ 43
20 Related party transactions ..................................................... 48
21 Auditors’ remuneration ........................................................ 49
22 Related undertakings ......................................................... 49
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 23
Notes
1 General information
Centrica Energy Trading A/S (the ‘Company’) is a subsidiary of the public company Centrica plc, domiciled
and incorporated in the UK, and registered in England and Wales. The address of the registered office is
Skelagervej 1, 9000 Aalborg, Denmark.
The financial statements for the period 1 January – 31 December 2023, presented in the Annual Report 2023
comprise both consolidated financial statements of Centrica Energy Trading A/S and its subsidiaries (the
Group) and separate Parent Company financial statements.
The functional currency of the Company and the Group is Euro. The presentational currency is Danish kroner
(DKK) in line with previous years. All values are rounded to the nearest thousand (tDKK). Operations and
transactions conducted in currencies other than Danish Kroner are included in the consolidated Financial
Statements in accordance with the foreign currencies accounting policy set out in note 4.
IFRS is used synonymously with IFRS
(R)
Accounting Standards.
2 Basis of preparation and summary of significant new
accounting policies and reporting changes
This section details the basis of preparation and new accounting standards and how these are expected to
impact the financial position and performance of the Group.
The principal accounting policies applied in the preparation of these consolidated Financial Statements are
set out below and in note 4. Unless otherwise stated, these policies have been consistently applied to the
years presented.
(a) Basis of preparation
The consolidated Financial Statements has been prepared in accordance with IFRS as adopted by the EU
and further requirements in the Danish Financial Statements Acts applying to large enterprises of reporting
class C.
The consolidated financial statements have been prepared on a going concern basis and under the historical
cost basis except for gas inventory and derivative financial instruments required to be measured at fair value
through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It requires management to exercise its judgement in the process of applying the Group’s
accounting policies. The areas involving a higher degree of judgement or complexity and areas where
assumptions and estimates are significant to the consolidated Financial Statements are described in note 3.
(b) Standards and amendments that are issued but not yet applied by the Group
At the date of authorisation of these consolidated financial statements, the Group has not yet applied the
following new and revised standards and amendments that have been issued but not yet effective:
Amendments to IAS 1 'Presentation of Financial Statements', regarding classification of liabilities as current or
non-current and non-current liabilities with covenants, effective from 1 January 2024.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 24
Notes
3 Critical accounting judgements and key sources of estimation uncertainty
This section sets out the key areas of judgement and estimation that have the most significant effect on the
amounts recognised in the consolidated financial statements.
(a) Critical accounting judgements
Management has made the following key judgements that have the most significant effect on the consolidated
financial statement.
Presentation of revenue from contracts with customers
Significant judgements are involved when determining whether contracts with customers for offtake of
produced energy and associated benefits, as part of the RETO business, should be accounted for gross or
net. In making this judgement the Group considers whether it acts as a principal or agent in the arrangement.
This is based on whether control is obtained on energy produced prior to onwards sales to counterparties.
When the Group obtains control of energy produced, and is the balancing responsible party, and receives all
benefits from the sale of energy, the Group acts as a principal and revenue is presented gross.
Trading commodity contracts with physical delivery
A significant part of the sales and purchase contracts included in the trading portfolio are ordinary sales
and purchase contracts with physical settlement of energy commodities, primarily power and gas. As these
contracts are managed on a portfolio basis and a practice of net settlement is present, the contracts are
considered to meet the conditions in IFRS 9 for fair value option and accounted for in accordance with IFRS 9.
Physical Gas Storage
Physical Gas Storage contracts are bought at auction and the commercial intention is to hold it for the dura-
tion of the contract. A continued lack of uptake in the sale of storage rights is indicative that there continues to
be a lack of willing buyers and sellers in the physical storage market across Europe and therefore it remains
inactive. Futhermore there is no practice of net settling. Therefore Physical Gas Storage is out of scope of
IFRS 9, and instead accounted for as executory contracts under IFRS 15.
Gas cross border capacities
The contracts contain no net settlement terms and there is no past practice of net settling similar contracts.
Gas cross-border capacity contracts therefore do not fall within the scope of IFRS 9 and are instad accounted
for as executory contracts under IFRS 15.
Power capacity
Power cross-border capacity contracts are net settled and the market for power cross-border capacities is
considered to be liquid. Power cross-border capacities is therefore in the scope of IFRS 9 and measured at
fair value.
(b) Key sources of estimation uncertainty
This section below detail the assumptions management makes about the future and other major sources of
estimation uncertainty when measuring its assets and liabilities at the reporting date. The information given
2 Basis of preparation and summary of significant new
accounting policies and reporting changes (continued)
Issuance of IFRS 18 'Presentation and disclosure in Financial Statements', effective from 1 January 2027. The
Group is currently assessing the impact this new standard will have on current financial statements.
Only new and revised standards that are assessed as potentially relevant for Centrica Energy Europe are
listed. Management does not expect the listed issued but not effective amendments or standards, or stand-
ards not discussed above to have a material impact on the consolidated financial statements.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 25
Notes
relates to the sources of estimation uncertainty that have a significant risk of resulting in a material adjustment
to those assets and liabilities in the next financial year.
Estimates and associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, including current and expected economic conditions,
and, in some cases, actuarial techniques. Although these estimates and associated assumptions are based
on management’s best knowledge of current events and circumstances, actual results may differ.
Determination of fair values – derivative financial instruments
Fair values of energy derivatives are estimated by reference in part to published price quotations in active
markets and in part by using valuation techniques. More detail on the assumptions used in determining fair valu-
ations of energy derivatives is provided in note 19 and on the sensitivities to these assumptions in note 18. The
net fair value of Level 3 derivative financial instruments held on the balance sheet as of 31 December 2023 was
(811) mDKK.
Gas trading inventories at fair value
Fair value measurement of the gas trading inventories requires management to make estimates and use
assumptions, as observable market prices for gas kept in storages are not available, whereas closely-related
proxy prices for gas kept at the gas hubs are. The proxy prices are used to value the storages. The fair value of
gas trading inventories held at fair value held on the balance sheet as of 31 December 2023 was 1,133 mDKK.
Onerous contract provisions
Centrica Energy Europe holds onerous contract provisions relating to expected losses from green certificates
forward sold to prices below the forward prices at 2023 year-end. The value provided for is an estimate based
on the knowledge currently available, and current forward prices. The onerous contract provisions as of 31
December 2023 was 192 mDKK.
4 Summary of significant accounting policies
This section sets out the Group’s significant accounting policies in addition to the critical accounting poli-
cies applied in the preparation of these consolidated financial statements. Unless otherwise stated, these
accounting policies have been consistently applied to the years presented.
Basis of consolidation
The consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are
controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50%
of the voting rights or in any other way possibly or actually exercising controlling influence.
Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and
exercises significant, but not controlling, influence are regarded as associates.
The consolidated financial statements are prepared on the basis of the financial statements of the Parent
and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On
consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and
losses on transactions between the consolidated enterprises are eliminated. The financial statements used for
consolidation have been prepared applying the Group’s accounting policies.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the acquisition
date, with net assets having been calculated at fair value.
3 Critical accounting judgements and key sources of estimation uncertainty
(continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 26
Notes
Business combinations under common control
During the year Centrica Business Solutions Belgium NV was purchased from another company in the larger
Centrica Group. Control was obtained as of January 1 2023, and the acquired entities are part of the consoli-
dated figures from this date. The purchase price was paid in cash. See the cash flow statement for the Group
for an overview of acquired assets and liabilities.
When buying companies, mergers, demergers, additions of assets and share exchange etc., where the
participating companies are under the control of the parent company, the Book Value method is used where
the business combination under common control is deemed completed at the time of acquisition without
adjustments of comparative figures.
According to the Book Value method, the acquired company's assets and liabilities are recognised at the
booked values in the entities, corrected for any differences in applied accounting policies and accounting
estimates. The difference between the agreed remuneration and the accounting value of the acquired
company is recognised on equity.
Translation of foreign currency
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and
losses arising due to differences between rates at the transaction date and the rates at the dates of payment
are recognised in financial income or financial expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the
balance 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 transaction date rates are recognised in financial
income or financial expenses in the income statement.
Basis of Recognition and Measurement
Income is recognised in the income statement as earned, including value adjustments of gas inventory, finan-
cial assets and liabilities.
All expenses including depreciation, amortisation and impairment losses, are also recognised in the income
statement.
Assets are recognised in the balance sheet when future financial benefits are likely to accrue to the company
and the value of such assets can be reliably measured. Liabilities are recognised in the balance sheet when
they are probable and can be measured reliably. Upon initial recognition, assets and liabilities are measured
at cost. Subsequently, assets and liabilities are measured as described below for each item.
Predictable losses and risks arising before the date of presentation of the financial statements and the facts
that confirm or rebut circumstances and conditions existing at the reporting date are taken into consideration
upon recognition and measurement.
Trading income and revenue
(a) Trading income, net
Power and gas trading income comprises realized and unrealized net gains and losses arising from
trading within energy commodity derivatives. Aside from financial contracts, phyiscal trading power and
gas contracts and power cross border capacities are included as trading income. The energy commodity
derivatives make up Centrica Energy Europe’s trading portfolio which includes futures, options and certain
forward sales and forward purchases commodity contracts that are either financially or physically settled. A
significant part of the sales and purchases contracts included in the trading portfolio are ordinary sales and
purchase contracts with physical settlement of energy commodities, primarily power and gas.
As these contracts are managed on a portfolio basis, and a practice of net settlement is present, the
contracts are considered in scope of IFRS 9 and treated as derivatives.
4 Summary of significant accounting policies (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 27
Notes
Profits/losses from financial trading activities are recognised as ascertained and open positions are adjusted
to the fair value on the reporting date and the adjustment effect is thus recognized in the income statement
as revenue. Additional reserves are applied as part of the fair value to adjust for the risk of over estimation
effectively resulting in a lower valuation price for both bids and offers respectively.
Net changes in the fair value of energy commodity derivatives held for trading presented as financial assets
or financial liabilities, respectively, as well as net fair value changes in gas storage inventories held for trading
are included in “trading income, net” as it represents an important part of the trading activity. Net change in
fair value of inventory relates to the change from purchase of gas compared to the fair value.
Foreign currency adjustments arising as part of the adjustment to fair value is recognised in the income state-
ment as revenue.
(b) Revenue from contracts with customers
Revenue from contracts with customers is measured at the transaction price, which is the contractually
agreed price excl. VAT and taxes charged on behalf of third parties.
Revenue from the sale of power and energy-related services comprises the sale of power sourced from
energy producers and related services in terms of e.g. production management and balancing. Revenue is
recognised when control of the power is transferred to the buyer simultaneously with fulfilment of the related
services, ie. when the power is delivered. Agreements 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.
Centrica Energy Europe determines whether it is acting as principal or agent in these arrangements, based
on whether it holds the main risks related to, and controls the power and services delivered before selling it in
the market. The Group has concluded that we in all material aspects are acting as principal in these arrange-
ments.
The sale of power is settled daily.
Revenue from sale of certificates comprises the sale of certificates sourced from producers. Revenue is
recognized when control of the climate certificate is transferred to the buyer, i.e. when the certificate is deliv-
ered to the buyer. Agreements for the sale of certificates are fulfilled at a point in time.
Cost of sales
Cost of sales includes the purchase of power and certificates for resale and transportation thereof incurred to
achieve revenue for the year.
Staff costs
Wages, salaries, pension contributions, social security contributions, special payroll tax, sick leave and
bonuses are recognised in the year in which the associated services are rendered by employees of the
Group.
Depreciation and Amortisation
Amortisation of intangible assets and depreciation of property, plant and equipment aim to ensure linear
amortisation and depreciation over the expected useful life of the asset in question.
The following useful lives and residual values apply:
Useful life Residual value
Land and Buildings 50 years 2%
Leasehold improvements 10 years 0%
Contractual rights 5 years 0%
Development projects 3-5 years 0%
Plant and equipment 5 years 0%
4 Summary of significant accounting policies (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 28
Notes
Intangible Assets
Intangible assets are measured in the balance sheet at the lower of cost less accumulated amortisation and
the recoverable amount. The recoverable amount is the higher of the asset's fair value less costs of disposal
and its value in use. Directly and indirectly incurred costs are included in cost.
IT development projects are recognised at cost, including costs of, for example, wages directly or indirectly
attributable to the development projects. Development projects are recognised in the balance sheet only
when the following criteria are met:
• It is technically feasible to complete the development projects and make it available for use
• Management intends to complete the development projects and use or sell it
• It is possible to use or sell the finished development projects
• It can be documented that economic benefits can be derived from the finished development project
• The necessary resources are available to finish the development project
• The expenditure attributable to the development of the development project can be reliably measured
Costs related to maintenance or projects that do not meet the criteria for recognition in the balance sheet, are
expensed in the income statement when they are incurred.
Capitalised development costs are amortised from the time when the developed asset is ready for its
intended use, linearly over the period where they are expected to generate economic benefits.
Property, plant and equipment
Property, plant and equipment is measured in the balance sheet at lower of cost less the accumulated
depreciation and the recoverable amount. The recoverable amount is the value of the asset in continued use
or from sale.
The recoverable amount of the asset is calculated as the higher of the net selling price and value in use. The
value in use is calculated as the present value of the expected net cash flows from application of the asset or
asset group and expected net cash flows from sale of the asset or asset group after the end of useful life.
Cost includes the acquisition price and costs directly related with the acquisition up until the time the asset is
ready for use.
For own-manufactured assets, the cost price includes direct and indirect costs for labor consumption, mate-
rials, components and subcontractors.
Inventories
(a) Gas inventories
Gas inventories are acquired with the purpose of selling in the near future and generating a profit from short
term price fluctuations. As such, the Group meets the broker-trader criteria in IAS 2. As a result gas invento-
ries are measured at fair value less cost to sell. As observable market prices for gas kept in storages are not
available, whereas closely related proxy prices for gas kept at the gas hubs are, the proxy prices are used
to value the storages. Changes in fair value less costs to sell are recognised in the income statement within
“trading income and revenue”.
(b) Certificates
In general certificates are measured at the lower of cost according to weighted-average cost and net realis-
able value.
El certificates and EUAs are measured at the lower of cost according to the FIFO principle and net realisable
value.
The net realisable value of certificate is calculated at the amount expected to be generated by sales during
normal operations less selling expenses. The net realisable value is determined allowing for marketability,
obsolescence and development in expected sales.
4 Summary of significant accounting policies (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 29
Notes
Derivative financial instruments
Centrica Energy Europe uses a range of derivative financial instruments for both trading and hedging of
exposures to energy price risks etc., arising in the normal course of business. Derivative financial instruments
are classified as held for trading for accounting purposes, and the Group does not apply any type of hedge
accounting in the financial statements.
All derivative financial instruments are initially recognised at fair value and are subsequently re-measured to
fair value at each reporting date.
The Group measures derivative financial instruments at fair value, which is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measure-
ment date.
When measuring the fair value of an asset or liability, it is done with the assumption that the transaction to sell
the asset or transfer the liability takes place in either the principal market for the asset or liability, or if that is not
available, the most advantageous market for the asset or liability.
Contracts on non-financial items that can be settled net in cash or another financial instrument, or by
exchanging financial instruments as if the contracts were financial instruments are measured at fair value. The
fair value measurement of non-financial assets takes into account a market participant’s ability to generate
economic benefits by using the asset at its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.
Centrica Energy Europe uses valuation techniques which are appropriate for the respective contracts,
accounting for the risks tied to the contracts and to the inputs and methods used for the valuation. Valuation
techniques used maximise the use of relevant observable inputs, while minimising the use of unobservable
inputs.
Financial assets and financial liabilities measured and held at fair value are classified into one of the three catego-
ries, known as hierarchy levels, which are defined according to the inputs used to measure fair value as follows:
• Level 1: Fair value is determined using observable inputs that reflect unadjusted quoted market prices for
identical assets and liabilities;
• Level 2: Fair value is determined using significant inputs that may be directly observable inputs or unobserv-
able inputs that are corroborated by market data; and
• Level 3: Fair value is determined using significant unobservable inputs that are not corroborated by market
data and may be used with internally developed methodologies that result in management’s best estimate of
fair value.
Assets and liabilities that are recognised in the financial statements at fair value, are placed within the fair
value hierarchy based on the lowest level of input that is significant to the fair value measurement as a whole.
Categorisations between levels are reassessed at the end of each reporting period. Transfers between levels
are deemed to have occurred at the start of the reporting period.
For the purpose of the fair value disclosures, the Group has determined classes of financial instruments that
are appropriate to the nature of the information disclosed, taking into account the characteristics of those finan-
cial instruments.
Derivative financial instrument assets and liabilities are offset and presented on a net basis only when there is
a currently enforceable legal right of set-off, and the intention to net settle the contracts is present.
The Group enters certain energy derivative financial instrument contracts covering periods for which observ-
able market data does not exist. The fair value of such derivative financial instruments is estimated by refer-
ence in part to published price quotations from active markets, to the extent that such observable market
data exists, and in part by using valuation techniques, the inputs to which include data that is not based on or
derived from observable markets. Where the fair value at initial recognition for such contracts differs from the
4 Summary of significant accounting policies (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 30
Notes
transaction price, a fair value gain or fair value loss will arise. This is referred to as a day-one gain or day-one
loss. Such gains and losses are deferred (not recognised) and amortised to the Group income statement
based on volumes purchased or delivered over the contractual period until such time as observable market
data becomes available. When observable market data becomes available, any remaining deferred day-one
gains or losses are recognised within the Group income statement.
Calculation of financial ratios
Financial ratios have been calculated in accordance with the recommendations of the Danish Society of
Financial Analysts:
Return on equity: Profit for the year
Average equity
Profit margin: Operating profit
Revenue
Equity ratio: Equity at year-end
Total assets
5 Trading income and revenue
Amounts in tDKK 2023 2022
Trading income, net*
Realised trading income 8,149,569 6,993,091
Net change in fair value of commodity derivatives held for trading -374,819 1,107,370
Net change in fair value of inventory held for trading -1,320,383 862,263
Revenue from contracts with customers
Sales of climate certificates 1,644,185 1,256,448
Sales of power and energy related services 14,379,816 25,482,855
Trading income and revenue 22,478,368 35,702,027
* Net change presented is the change in balance sheet value from the start of the year to the end of the year of derivatives and inventory.
Realised trading income consists of settled values for realised contracts.
Centrica Energy Europe carries out almost all activities from Denmark as all handling of physical production
and trading is done from the main office in Aalborg thus a split of the activity is not relevant. Furthermore
Centrica Energy Europe see the European market as an integrated Pan-European market with more and
more synergies across countries.
6 Staff costs
Amounts in tDKK 2023 2022
Wages and salaries 569,801 663,901
Pension costs 23,717 16,881
Other social security costs 5,374 3,819
Other staff costs 65,537 7,369
Total 664,429 691,970
Average number of employees 477 361
4 Summary of significant accounting policies (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 31
Notes
7 Financial income
Amounts in tDKK 2023 2022
Interest income from group enterprises 265,862 13,437
Interest income from associates 224 218
Exchange rate adjustments 18,025 0
Other interest income 55,766 10,352
Total 339,877 24,007
8 Financial expenses
Amounts in tDKK 2023 2022
Interest expenses from group enterprises 2,356 0
Guarantee provision 3,538 2,637
Exchange rate adjustments 0 20,716
Interest expenses* 97,797 55,296
Total 103,691 78,649
* Total interest expense calculated using the effective interest method for financial liabilities that are measured at amortised cost.
9 Tax on profit from ordinary activities
Amounts in tDKK 2023 2022
Tax on current year taxable income 760,316 1,220,869
Correction to current tax, previous years 31,682 -46,156
Correction to deferred tax, previous years -1,601 1,366
Total 790,397 1,176,079
Deferred tax is computed at 22% and is broken down as follows:
Intangible assets -15,959 -18,281
Plant and equipment 3,827 4,269
Current assets 4,692 4,971
Total provision for deferred tax, closing balance -7,440 -9,041
Total provision for deferred tax, opening balance -9,041 -7,675
Provision for deferred tax for the year -1,601 1,366
Effective tax percentage
Profit for the year before tax 3,445,948 5,830,836
Calculated tax (22%) 758,109 1,282,784
Effect of different tax percentages for foreign subsiduaries -7,528 -62,162
Tax value of non-deductible costs and non-taxable income 9,735 247
Correction to current tax, previous years 31,682 -46,156
Correction to deferred tax, previous years -1,601 1,366
Tax on profit 790,397 1,176,079
Effective tax percentage 22.9% 20.2%
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 32
Notes
10 Intangible assets
Amounts in tDKK 2023 2022
Development projects
Cost price as of 01.01.2023 255,637 227,967
Additions from business combinations 71,088 0
Additions during the year 6,314 0
Transfers during the year 6,987 27,670
Disposals during the year -4,315 0
Foreign exchange adjustments 177 0
Cost price as of 31.12.2023 335,888 255,637
Amortisations as of 01.01.2023 193,842 168,653
Additions from business combinations 34,452 0
Amortisations during the year 35,823 25,189
Reversal of amortisations on disposals in the year -3,834 0
Foreign exchange adjustments 87 0
Amortisations as of 31.12.2023 260,370 193,842
Book value as of 31.12.2023 75,518 61,795
Contractual rights
Cost price as of 01.01.2023 1,516 1,516
Additions from business combinations 3,543 0
Disposals during the year -1,516 0
Foreign exchange adjustments 9 0
Cost price as of 31.12.2023 3,552 1,516
Amortisations as of 01.01.2023 1,516 1,516
Additions from business combinations 3,245 0
Amortisations during the year 127 0
Reversal of amortisations on disposals in the year -1,516 0
Foreign exchange adjustments 8 0
Amortisations as of 31.12.2023 3,380 1,516
Book value as of 31.12.2023 172 0
Development projects in progress
Cost price as of 01.01.2023 21,303 20,168
Additions during the year 20,380 28,805
Transfers during the year -6,987 -27,670
Cost price as of 31.12.2023 34,696 21,303
Book value as of 31.12.2023 34,696 21,303
Booked value intangible assets as of 31.12.2023 110,386 83,098
Development projects consists of own developed software. The software is supporting the Asset Manage-
ment business as well as the Trading business.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 33
Notes
11 Tangible assets
Amounts in tDKK 2023 2022
Land and buildings
Cost price as of 01.01.2023 129,027 128,039
Transfers during the year 666 988
Cost price as of 31.12.2023 129,693 129,027
Depreciation as of 01.01.2023 17,356 13,564
Depreciation during the year 3,907 3,792
Depreciation as of 31.12.2023 21,263 17,356
Book value as of 31.12.2023 108,430 111,671
Leasehold improvements
Cost price as of 01.01.2023 0 0
Transfers during the year 725 0
Cost price as of 31.12.2023 725 0
Depreciation as of 01.01.2023 0 0
Depreciation during the year 6 0
Depreciation as of 31.12.2023 6 0
Book value as of 31.12.2023 719 0
Plant and equipment
Cost price as of 01.01.2023 30,031 28,406
Additions from business combinations 16,024 0
Additions during the year 40,918 0
Transfers during the year 8,726 1,625
Foreign exchange adjustments 164 0
Cost price as of 31.12.2023 95,863 30,031
Depreciation as of 01.01.2023 23,296 20,341
Additions from business combinations 10,069 0
Depreciation during the year 7,964 2,955
Foreign exchange adjustments 130 0
Depreciation as of 31.12.2023 41,459 23,296
Book value as of 31.12.2023 54,404 6,735
Plant and equipment in progress
Cost price as of 01.01.2023 0 728
Additions during the year 10,121 1,884
Transfers during the year -10,117 -2,612
Cost price as of 31.12.2023 4 0
Book value as of 31.12.2023 4 0
Booked value tangible assets as of 31.12.2023 163,557 118,406
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 34
Notes
12 Inventories
Amounts in tDKK 2023 2022
Gas* 1,133,045 2,453,428
Certificates 196,549 99,297
Total 1,329,594 2,552,725
Cost of inventories expensed in the income statement
Certificates 1,432,912 1,087,413
Total 1,432,912 1,087,413
* Gas inventories are measured at fair value less cost to sell.
13 Other payables (non-current)
Amounts in tDKK 2023 2022
Nominal value of debt 20,072 20,194
2-5 years 20,072 20,194
After 5 years 0 0
Total 20,072 20,194
14 Onerous contract provisions
Amounts in tDKK 2023 2022
Onerous contract provisions as of 01.01.2023 0 0
Additional onerous contract provisions in the year 192,050 0
Onerous contract provisions as of 31.12.2023 192,050 0
Centrica Energy Trading A/S holds an onerous contract provision of 174,878 tDKK at year-end relating to the
expected loss from green certificates forward sold to prices below the forward prices at 2023 year-end.
One of Centrica Energy Trading A/S' subsidiaries holds an onerous contract provision of 17,172 tDKK relating
to an expected loss as management have decided to withdraw from a market.
15 Other provisions
Amounts in tDKK 2023 2022
Other provisions as of 01.01.2023 22,504 31,354
Additional provisions in the year 0 6,028
Unused provisions reversed during the year -22,504 -14,878
Provisions during the year 3,078 0
Other provisions as of 31.12.2023 3,078 22,504
Centrica Energy Trading A/S has been part of a number of minor legal disputes which have been settled in
2023. Previous year management made provisions of 22,504 tDKK to cover the expected potential losses from
these legal disputes. The provisions of 22,504 tDKK have been reversed in the year, as time has shown that
Centrica Energy Trading A/S did not realise any losses from the legal disputes
At year-end Centrica Energy Trading A/S holds a provision of 3,078 tDKK relating to a number of minor legal
disputes. Management considers the provisions to be sufficient to cover future potential losses.
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 35
Notes
16 Commitments, lease obligations and guarantees
(a) Commitments and lease obligations
Commitments are not held on the Group’s Balance Sheet as these are executory arrangements, and relate to
amounts that we are contractually required to pay in the future as long as the other party meets its contrac-
tual obligations.
Amounts in tDKK 2023 2022
Commitments in relation to leases 88,372 22,342
Renewable obligation certificates 3,549,628 3,637,263
Commodity purchase contracts 22,893,461 48,741,494
Transportation capacity 977,650 1,320,142
Total 27,509,111 53,721,241
The maturity analysis for commitments and leases at 31 December is given below:
Amounts in tDKK 2023 2022
Within 1 year 13,140,077 32,320,586
1-2 years 5,333,055 5,863,568
2-3 years 2,081,557 4,080,705
3-4 years 1,720,972 2,538,034
4-5 years 1,182,602 2,183,565
After 5 years 4,050,848 6,734,783
Total 27,509,111 53,721,241
(b) Guarantees
Amounts in tDKK 2023 2022
The Group's banks have provided guarantees in relation to contractual obligations
at the balance sheet date amounted to 1,729,524 1,611,004
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 36
Notes
17 Financial assets and liabilities by category
The table below shows Centrica Energy Europe’s financial instruments in the balance sheet divided into main
categories. The categories indicate how the financial instruments are measured in the financial statements.
Amounts in tDKK 2023 2022
Derivative financial instruments* 3,382,864 7,939,582
Financial assets measured at fair value through profit/loss 3,382,864 7,939,582
Trade receivables 2,815,164 4,418,027
Deposits related to trading 1,047,401 2,090,388
Receivables from group enterprises 4,342,007 3,706,447
Cash and cash equivalents 1,449,394 3,340,236
Financial assets measured at amortised cost 9,653,966 13,555,098
Derivative financial instruments* 3,090,553 7,695,587
Financial liabilities measured at fair value through profit/loss 3,090,553 7,695,587
Trade payables 3,322,381 5,226,007
Deposits related to trading 341,790 3,162,595
Debt to group enterprises 439,520 10,475
Financial liabilities measured at amortised cost 4,103,691 8,399,077
* Derivatives financial instruments include both physical and financial contracts..
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 37
Notes
18 Financial risk management
The primary risks Centrica Energy Europe is exposed to include market risk, liquidity risk, credit risk and foreign
exchange risk as a result of our business activities. We follow Centrica Energy Risk mandate, which is designed
to identify, manage and mitigate these risks.
Market risk management
Market risk arises in in commodity and financial markets in which Centrica Energy Europe is engaged. The main
risk factor is fluctuations in commodity prices, but there are also risks pertaining to volumes and interest rates.
The level of market risk to which Centrica Energy Europe is exposed at a point in time varies depending on
market conditions, expectations of future price or market rate movements and the composition of the company’s
physical asset and contract portfolio.
(a) Commodity price risk management
Commodity price risk is the risk associated with possible future price moves of commodities and other
products traded by Centrica Energy Europe, impacting the fair value or future cash flows impacting Centrica
Energy Europe’s current or future profitability.
As an energy trading company Centrica Energy Europe is active in most power and gas markets throughout
Europe, as well as the related markets for e.g. green certificates.
Market risk management constantly monitors risk exposure across business areas. As part of their moni-
toring, a standard Value-at-Risk metric (VaR) approach is used, based on Monte Carlo simulation with a
95% confidence level and using a 75 days historical observation period. This is complimented by internally
developed models to compensate for some of the known limitations of the VaR approach. VaR measures the
estimated potential loss for a given confidence level over a predetermined holding period, which in our use is
set to 1 day. The associated risk limits are set in the Risk Directive on the group level and in the limit registry
for sub-limits set out for individual business areas.
As with any modelled risk measure, there are certain limitations that arise from the assumptions used in the
VaR calculation. VaR assumes that historical price behaviours will continue in the future and that the Group’s
trading positions can be unwound or hedged within the predetermined holding period. Furthermore, the
use of a 95% confidence level, by definition, does not take into account changes in value that might occur
beyond this confidence level.
The VaR numbers, as defined in the Risk Directive, reported ultimo 2023 and 2022 respectively are 31.2
mDKK and 24.7 mDKK. The average VaR utilisation during 2023 and 2022 respectively was 14.3 mDKK
and 63.7 mDKK. The majority of market risk exposure reflected in these numbers is related to price spread
among price areas or as time spreads within price area as opposed to an outright exposure against the
general price level of power or gas.
Renewable production volumes and the associated volumetric risk are regularly reassessed. Meteorologists,
traders and quantitative analysts carry out this evaluation. Based on the evaluation hedges are adjusted as
needed to remain within the limits set in the Risk Policy.
(b) Interest rate risk management
Centrica Energy Europe's exposure to the risk of changes in market interest rates relates primarily to inter-
est-bearing receivables and liabilities. The exposure is not material.
Liquidity risk management
Liquidity risk is the risk that Centrica Energy Europe is unable to meet its financial obligations as they fall
due. Centrica Energy Europe experiences significant movements in its liquidity position primarily due to the
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 38
Notes
seasonal nature of its business and margin cash arrangements. To mitigate this risk Centrica Energy Europe
maintains significant committed facilities and holds cash on deposit to ensure that there is sufficient liquidity
headroom at all points in the seasonal trading cycle of the business. Centrica Energy Europe is furthermore
owned by Centrica Plc, ensuring access to additional funding to meet short term liquidity needs, during high
price scenarios.
During 2022 energy markets experienced record price levels and volatility, increasing the demand for
liquidity across the industry. Centrica Energy Europe proved to have a robust liquidity model, ensuing
continued trading activity throughout the year.
Maturities of derivative financial instruments, trade payables and group payables are provided in the
following tables. The amounts disclosed in the table are the undiscounted contractual cash flows including
interests based on the contractual maturities:
2023
Amounts in tDKK Ultimo 2023 2024 2025 2026 After 2026
Trade payables 3,322,381 3,322,381 0 0 0
Deposits related to trading 341,790 341,790 0 0 0
Debt to group enterprises 439,520 439,520 0 0 0
Derivative financial instruments 3,090,553 1,757,165 510,293 162,869 660,226*
Total 7,194,244 5,860,856 510,293 162,869 660,226
* Concerns large PPA’s with maturity extending to year 2037.
2022
Amounts in tDKK Ultimo 2022 2023 2024 2025 After 2025
Trade payables 5,226,007 5,226,007 0 0 0
Deposits related to trading 3,162,595 3,162,595 0 0 0
Debt to group enterprises 10,475 10,475 0 0 0
Derivative financial instruments 7,695,587 5,148,555 747,684 401,388 1,397,960*
Total 16,094,664 13,547,632 747,684 401,388 1,397,960
* Concerns large PPA’s with maturity extending to year 2033.
The table above shows the contractual cash outflows on contracts held. As part of Centrica Energy Europe’s
market risk management, the contracts are to a large extent hedged, with opposite contracts from which
inflows of cash are expected. The table below shows the undiscounted contractual cash flows on asset deriva-
tive financial instruments, trade receivables and Group receivables presented in similar maturity buckets:
2023
Amounts in tDKK Ultimo 2023 2024 2025 2026 After 2026
Trade receivables 2,815,164 2,815,164 0 0 0
Receivables from group enterprises 4,342,007 4,342,007 0 0 0
Deposits related to trading 1,047,401 1,047,401 0 0 0
Derivative financial instruments 3,382,864 2,298,664 647,677 104,375 332,148*
Total 11,587,436 10,503,236 647,677 104,375 332,148
* Concerns large PPA’s with maturity extending to year 2034.
18 Financial risk management (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 39
Notes
2022
Amounts in tDKK Ultimo 2022 2023 2024 2025 After 2025
Trade receivables 4,418,027 4,418,027 0 0 0
Receivables from group enterprises 3,706,447 3,706,447 0 0 0
Deposits related to trading 2,090,388 2,090,388 0 0 0
Derivative financial instruments 7,939,582 5,939,160 783,726 208,788 1,007,908*
Total 18,154,444 16,154,022 783,726 208,788 1,007,908
* Concerns large PPA’s with maturity extending to year 2044.
Centrica Energy Europe has credit facilities in form of guaranties at Euler Hermes 650 mDKK (2022: 650
mDKK). At Sydbank the credit facility in form of guaranties is 180 mDKK (2022: 180 mDKK), where 100
mDKK (2022: 100 mDKK) can be used as a cash overdraft.
Centrica Energy Europe furthermore has a Revolving Credit Facility with its parent company, which as of 31
December 2023 amounted to 21,500 mDKK (2022: 21,500 mDKK).
Credit risk management
Credit risk is the risk of loss associated with a counterparty’s inability or failure to discharge its obligations
under a contract.
Credit risk exposure occurs when trading with counterparties. A thorough know your customer process is
carried out before trading is commenced with a counterparty. A credit rating is furthermore carried out by the
credit risk team, in line with the Groups Risk Directive. Through this process maximum allowed exposures are
determined, and the need for any collateral or guarantees are assessed before trading commences.
A considerable part of Centrica Energy Europe’s counterparts are covered by the standard EFET agreement.
This agreement also contain regulation on credit, payment and offsetting. This means that Centrica Energy
Europe is less exposed to credit risk as opposed to trading with less or no standardised terms.
Historically credit losses have been limited. Provisions for loss on trade receivables was at the beginning of
the year 40.5 mDKK. Of these 10 mDKK were used during the year, while the remaining 30.5 mDKK was
released. Given a need of 137 mDKK further reserves, the provision at 31.12.2023 was 137 mDKK.
2023
Amounts in tDKK
Trade
receivables
Derivative
financial
instruments Total
The credit quality of the group’s counterparties
Minimal risk (Rated A) 939,038 478,769 1,417,807
Low risk (Rated B) 1,755,195 2,770,451 4,525,646
High risk (Rated C) 120,931 133,644 254,575
Total 2,815,164 3,382,864 6,198,028
18 Financial risk management (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 40
Notes
2022
Amounts in tDKK
Trade
receivables
Derivative
financial
instruments Total
The credit quality of the group’s counterparties
Minimal risk (Rated A) 1,422,876 1,506,833 2,929,709
Low risk (Rated B) 2,824,905 5,883,114 8,708,019
High risk (Rated C) 170,246 549,635 719,881
Total 4,418,027 7,939,582 12,357,609
Minimal and low risk covers TSO’s, Power Plants and A-rated counterparts. It is the assessment of the
Centrica Energy Europe that these counterparts carry no or only little credit risk as they are part of partly
public security of supply or have high credit ratings.
Foreign currency risk
The framework for open currency positions is based on the risk assessment of the foreign currency market.
Each currency is associated with a risk weight reflecting the risk related to the respective currencies. The
commercial currency exposure is accumulated in a portfolio managed by Centrica Energy Europe’s treasury
department and subsequently hedged in the market.
Trading energy throughout Europe in different currencies naturally entails currency risk, which is handled by
the treasury department with the purpose of removing all material currency risk.
The table below shows an analysis of the sensitivity of the Group's financial position and exposure to
changes in foreign exchange rates. The company deems 0.5% movements to Danish Kroner and 10% move-
ments to Pounds Sterling currency rates relative to Euro to be reasonably possible. The impact of such move-
ments on profits and equity, assuming all else is equal, are as follows:
Incremental profit/(loss)
2023 2022
Reasonably
possible
change in
currency
Impact
on P/L
and Equity
before tax
Reasonably
possible
change in
currency
Impact
on P/L
and Equity
before tax
DKK
+0.5% 11,583 +0.5% 29,586
-0.5% -11,583 -0.5% -29,586
GBP
+10% 80,931 +10% 83,794
-10% -80,931 -10% -83,794
18 Financial risk management (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 41
Notes
Offsetting financial assets and financial liabilities
Centrica Energy Europe enters in to offsetting agreements with counterparts also covering financial
contracts. Both long and short positions are traded with these counterparts and the gross value of these
contracts can be significant. However, the possibility to offset individual contracts with these counterparts
mean that the actual cash settlement of the contracts is significantly lower. Offsetting is mainly done on
trades regarding the same commodity in the same currency, which are settled net, but Centrica Energy
Europe also apply master netting agreements with the possibility to do cross commodity netting. The netting
is carried out also in the actual settlement in cash. The table below shows the financial assets and liabilities
that are subject to offsetting.
2023
Related amounts
not set off in
the Group balance sheet
Amounts in tDKK
Gross
amounts of
recognised
financial
asset/liability
Gross
amounts
offset in
the Group
Balance
Sheet
Net amounts
presented
in the Group
Balance
Sheet Collateral Net amount
Offsetting of financial assets
Trade receivables 9,938,444 7,123,280 2,815,164 116,235 2,698,929
Receivables from group enterprises 10,172,602 5,830,595 4,342,007 0 4,342,007
Derivative financial instruments 16,839,097 13,456,233 3,382,864 225,567 3,157,297
Total 36,950,143 26,410,108 10,540,035 341,802 10,198,233
Offsetting of financial liabilities
Trade payables 10,445,661 7,123,280 3,322,381 7,820 3,314,561
Payables to group enterprises 6,270,115 5,830,595 439,520 0 439,520
Derivative financial instruments 16,546,786 13,456,233 3,090,553 9,508 3,081,045
Total 33,262,562 26,410,108 6,852,454 17,328 6,835,126
2022
Related amounts
not set off in
the Group balance sheet
Amounts in tDKK
Gross
amounts of
recognised
financial
asset/liability
Gross
amounts
offset in
the Group
Balance
Sheet
Net amounts
presented
in the Group
Balance
Sheet Collateral Net amount
Offsetting of financial assets
Trade receivables 16,576,024 12,157,997 4,418,027 406,065 4,011,962
Receivables from group enterprises 21,763,401 18,056,954 3,706,447 0 3,706,447
Derivative financial instruments 65,405,975 57,466,393 7,939,582 2,067,117 5,872,465
Total 103,745,400 87,681,344 16,064,056 2,473,182 13,590,874
Offsetting of financial liabilities
Trade payables 17,384,004 12,157,997 5,226,007 63,976 5,162,031
Payables to group enterprises 18,067,429 18,056,954 10,475 0 10,475
Derivative financial instruments 65,161,980 57,466,393 7,695,587 383,701 7,311,886
Total 100,613,413 87,681,344 12,932,069 447,677 12,484,392
18 Financial risk management (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 42
Notes
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concern,
while seeking to maintain an efficient capital structure with a balance of net debt and equity as shown in the
table below:
Amounts in tDKK 2023 2022
Debt 5,460,600 10,100,364
Cash and cash equivalents 1,449,394 3,340,236
Net debt 4,011,206 6,760,128
Equity 6,302,069 6,657,683
Net debt to equity ratio (%) 64% 102%
Debt levels are restricted to maintain a strong credit profile. The Group’s credit standing is important to limit
collateral requirements in energy trading and hedging, and to ensure the Group is an attractive counterparty
to energy producers and long-term customers. The decrease in net debt in the year is primarily due to lower
commodity prices at the end of the year, compared to 2022.
19 Fair value of financial instruments
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. The company has
documented internal policies for determining fair value, including methodologies used to establish valuation
adjustments required for credit risk.
Financial instruments measured at fair value primarily consist of commodity derivatives traded as part of the
Group’s ordinary business activities, as well as foreign exchange derivatives used for managing currency risk
exposures.
For the purpose of the fair value disclosures, the Group has determined classes of financial instruments that
are appropriate to the nature of the information disclosed, taking into account the characteristics of those
financial instruments as well as the underlying commodity.
(a) Fair value hierarchy
As prescribed in IFRS 13 the Group has classified financial instruments into three levels. This serves to
provide an indication of the reliability of the inputs used when determining the fair value of financial instru-
ments measured at fair value through profit and loss in the financial statements.
Level 1
Level 1 consists of exchange traded derivatives, which are valued using closing prices provided by the
exchanges at the balance sheet date. Exchange traded derivatives are cleared daily through the receipt or
payment of variation margin. The cleared value is not presented within the derivative balance.
Level 2
Level 2 financial assets and liabilities consists of over-the-counter (OTC) commodity sale and purchase
contracts with power, gas and certificates as the underlying for which observable prices are available in the
delivery period. The period in which observable prices are available varies between 0 and 4 years depending
on the market. Prices used are prices derived from quoted prices or prices obtained through index developers,
corroborated with market data.
18 Financial risk management (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 43
Notes
For Level 2 contracts the fair value is determined using standard valuation techniques. The obtained market
values are discounted back to present value.
Bid/offer and CVA reserves are calculated on a portfolio level and included in Level 2 assets, and not pushed
down to the individual trade.
Level 3
Derivative financial instruments that fall within Level 3 of the fair value hierarchy are derivative financial instru-
ments where unobservable inputs are used in the valuation significantly impacting the fair value assessment.
These inputs include unobservable prices, risk premiums, volatilities and certain asset dependent factors.
Dependent on the market prices are observable for the first 0 to 4 years. Centrica Energy Europe holds
power contracts up to a 20 year time horizon.
Linear Level 3 Power and Level 3 Gas derivatives consist of OTC traded power capacities, and OTC traded
physical commodity sale and purchase contracts, in markets for which observable prices are not available in
the delivery period. For Level 3 energy derivatives, the main input used pertains to deriving expected future
commodity prices in markets that are not active as far into the future as some of our contractual terms. Linear
contracts are fair valued through standard valuation techniques, using prices derived from quoted prices or
prices obtained through index developers. The obtained market values are discounted back to present value.
Discount factors used range from 0,99 to 0,77, depending on delivery period and market.
Non-linear Level 3 contracts consist of contracts containing optionality or volume flexibility. Valuation of these
is based on internal standard simulation models, using prices derived from quoted prices or price obtained
through index developers, volatility and production estimates. Renewable production volumes and the asso-
ciated volumetric risk are regularly reassessed. Meteorologists, traders and quantitative analysts carry out
this evaluation. The Group has separate teams responsible for developing and quality assessing the models
used for individual valuations.
The Group’s valuation process includes specific teams of individuals that perform valuations of the Group’s
derivative financial instruments for financial reporting purposes, including Level 3 valuations. The Group has
an independent team that derives future commodity price curves based on available external data and these
prices feed into the energy derivative valuations, subject to adjustments to ensure they are compliant with
IFRS 13 ‘Fair Value Measurement’. The price curves are subject to review and approval by the Group’s Exec-
utive Committee and valuations of all derivative financial instruments, together with other contracts that are
not within the scope of IFRS 9, are also reviewed regularly as part of the overall risk management process.
The price curves used when valuing Level 3 derivatives as of 31.12.2023 has pricing ranging from 240 DKK
to 890 DKK pr. MW for Nordic Power, 265 DKK to 784 DKK pr. MW for Continental Power, 509 DKK to 754
DKK pr. MW for UK Power and 234 DKK to 298 DKK pr. MW for European gas.
The Group adjusts the market value of derivative financial instruments to account for counterparty credit risk
and corresponding possibility of a counterparty default preventing full realisation of the risk-free market value
of the derivative financial instrument. The Group estimates Credit Valuation Adjustments by computing an
expected evolution of the market value of a counterpart’s derivatives portfolio over the life of the contracts
weighted by the probability of a default and an assumption of the market value recoverable in the event of a
default. The Credit Value Adjustment was 161 mDKK as of 31.12.2023 and 455 mDKK as of 31.12.2022.
19 Fair value of financial instruments (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 44
Notes
2023
Amounts in tDKK Level 1 Level 2 Level 3 Total
Non-financial assets
Gas trading inventories at fair value 0 1,133,045 0 1,133,045
Total non-financial assets 0 1,133,045 0 1,133,045
Financial assets
Power – linear contracts 0 302,719 541,217 843,936
Power – non-linear contracts 0 0 312,683 312,683
Gas 0 1,908,689 260,264 2,168,953
Other 0 57,292 0 57,292
Total financial assets 0 2,268,700 1,114,164 3,382,864
Financial liabilities
Power – linear contracts 0 -328,180 -901,770 -1,229,950
Power – non-linear contracts 0 0 -988,989 -988,989
Gas 0 -782,119 -34,196 -816,315
Other 0 -55,299 0 -55,299
Total financial liabilities 0 -1,165,598 -1,924,955 -3,090,553
Total financial assets and liabilities 0 1,103,102 -810,791 292,311
2022
Amounts in tDKK Level 1 Level 2 Level 3 Total
Non-financial assets
Gas trading inventories at fair value 0 2,315,262 138,166 2,453,428
Total non-financial assets 0 2,315,262 138,166 2,453,428
Financial assets
Power – linear contracts 0 2,854,153 3,022,719 5,876,872
Power – non-linear contracts 0 0 331,373 331,373
Gas* 0 1,914,780 -197,230 1,717,550
Other 0 13,787 0 13,787
Total financial assets 0 4,782,720 3,156,862 7,939,582
Financial liabilities
Power – linear contracts 0 -1,271,843 -3,354,234 -4,626,077
Power – non-linear contracts 0 0 -1,742,618 -1,742,618
Gas 0 -221,815 -1,105,394 -1,327,209
Other* 0 317 0 317
Total financial liabilities 0 -1,493,341 -6,202,246 -7,695,587
Total financial assets and liabilities 0 3,289,379 -3,045,384 243,995
* Due to offsetting principles across commodities, some commodities might show negative amounts.
19 Fair value of financial instruments (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 45
Notes
Level 3 financial instruments
The reconciliation of the Level 3 fair value measurements during the year is as follows:
Amounts in tDKK 2023 2022
1st January -3,045,390 -2,401,121
Transfers from Level 2 to Level 3 0 614,101
Transfers from Level 3 to Level 2 216,644 2,255,748
Settlements 1,335,507 -702,683
Total realized and unrealized (losses)/Gains recognized through profit or loss 891,335 -2,811,435
31st December -601,904 -3,045,390
Transfers between levels are deemed to occur at the beginning of the reporting period.
Settlements comprise January 1st values realised during the year.
The market risk for all Level 3 contracts is included in the risk limits set in the Risk Policy and consequently
hedged in the underlying markets or through proxy hedge in correlated markets (Level 1 and 2 contracts)
where possible.
Because the Level 3 energy financial instrument valuations involve the prediction of future commodity market
prices, sometimes a long way into the future, reasonably possible alternative assumptions for gas or power
prices may result in a higher or lower fair value for Level 3 financial instruments. The sensitivity analysis
provided discloses the effect on profit or loss at 31 December 2023, assuming that a reasonably possible
change in the relevant risk variable had occurred at 31 December 2023, and has been applied to the risk
exposures in existence at that date to show the effects of reasonably possible changes in price on profit or
loss.
The sensitivity analysis provided is hypothetical only and should be used with caution as the impacts
provided are not necessarily indicative of the actual impacts that would be experienced. This is because the
company’s actual exposure to market rates is changing constantly as the company’s portfolio of commodity,
debt and foreign currency contracts changes.
The sensitivity analysis reflects the financial impact of a change in the underlying commodity prices (delta
values). The most critical non observable input is power prices and gas prices in the specified regions.
Reasonable changes to other non observable inputs are considered immaterial to the valuations, and no
simulation is carried out on these.
The impacts of reasonably possible changes using probability-based high and low curves applied to Level 3
proprietary trades are as follows:
2023 2022
Amounts in tDKK
Price
movement
Impact
on P/L
and Equity
before tax
Price
movement
Impact on
P/L and
Equity
before tax
Level 3 Nordic Power
Increase 64,751 Increase 510,179
Decrease -64,751 Decrease -514,332
Level 3 Continental Power
Increase 160,373 Increase 879,060
Decrease -160,373 Decrease -879,060
Level 3 UK Power
Increase 66,798 Increase 160,376
Decrease -61,327 Decrease -142,717
Level 3 Europe Gas
Increase -108,433 Increase 4,304,426
Decrease 108,432 Decrease -4,321,903
Level 3 European Gas in Storage
Increase 92,681 Increase 114,369
Decrease -92,681 Decrease -114,369
19 Fair value of financial instruments (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 46
Notes
The P/L impacts are based on reasonably possible price changes. These are calculated using both the
active and inactive market curves for energy prices.
The method used for determining the sensitivity to reasonable movements in the price curves is the same as
last year. Reasonable possible price changes used range from 61% (2022: 83%) at the short end of the curve
to 13% (2022: 24%) at the long end of the curve for gas, and from 14% (2022: 39%) at the short end of the
curve to 20% (2022: 23%) at the long end of the curve for power.
The fair values disclosed only concern contracts within the scope of IFRS 9. Centrica Energy Europe also
holds contracts outside the scope of IFRS 9. Such contracts are not fair valued. These contracts are speci-
fied in note 16.
Transfers in fair value hierarchy
The liquidity in the different markets and delivery periods in which the Group operates, were reassessed
during the year, leading to transfers between Level 2 and Level 3.
(a) Day-one gain or loss deferred
Where the fair value at initial recognition based on the in section 19 (b) described valuation techniques,
differs from the transaction price, a fair value gain or fair value loss will arise. Such losses are deferred and
recognised in the income statement over the delivery period of the underlying contracts based on the deliv-
ered volumes, until such time as observable market data becomes available. When observable market data
becomes available, any remaining deferred day-one gains or losses are recognised within the Group Income
Statement.
Day-one gain or loss deferred
Amounts in tDKK
2023
Linear
2023
Non-linear
2022
Linear
2022
Non-linear
1st January 296,737 2,160,686 174,988 718,213
Adjustment to opening balance* 0 0 107,058 0
Net gain/loss deferred on purchases in the year 31,410 -1,698,274 -66,971 3,303,498
Net amounts recognised in the income statement -98,864 243,323 81,662 -1,861,025
31st December 229,283 705,735 296,737 2,160,686
* Adjustments to opening balance relates to corrections of existing contracts.
19 Fair value of financial instruments (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 47
Notes
20 Related party transactions
During the year the Group entered into the following arm’s length transactions with related parties:
Amounts in tDKK 2023 2022
Transactions with related parties
Sales of goods and services to group enterprises* 6,996,952 3,997,231
Purchases of goods and services from group enterprises* 2,485,631 6,062,986
Purchases of goods and services from parent companies* 113,861 44,284
Financial income from parent companies 265,862 13,437
Financial income from associates 224 218
Financial expenses from parent companies 2,356 0
Related party balances
Receivables from parent companies** 2,493,203 1,585,751
Receivables from group enterprises* 1,848,804 2,120,696
Receivables from associates 3,882 5,425
Payables to parent companies** 61,367 10,475
Payables to group enterprises* 378,153 0
* Sales to and purchases from group parties, including receivables and payables in this regard, is mainly carried out on EFET terms. Figures presented include trading
income presented net across all counterparties in the income statement. Figures reported above for trading income, are net by related party.
** Receivables from parent companies mainly relates to distribution of surplus liquidity in the Centrica Group.
Key management remuneration
Key management personal comprise of CEO*, COO, CFO and CMSO at 31 December 2023 (2022:3).
Remuneration of key management personal
Amounts in tDKK 2023 2022
Short-term benefits** 4,452 5,811
Post-employment benefits 301 89
Share-based payments 434 19
Total 5,187 5,919
* Remuneration is included as a proportion of remuneration paid from the overlying parent company.
** Short-term benefits comprise base salary, company car scheme, cash bonuses etc.
Remuneration of board of directors
Amounts in tDKK 2023 2022
Total remuneration to board of directors 60 60
Total 60 60
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 48
Notes
Share savings programme
A number of employees are eligible for a share-based incentives program, through which the employees are
awarded shares. The program contains a two-to-three-year vesting period after which, the shareholders can
dispose of the shares at their discretion. The employees must be employed at the time of vesting to receive
the shares.
The share grant value is calculated as the average stock price over 5 days preceding the grant date. The
cost for Centrica Energy Trading A/S is equal to the grant value.
During the year 3,248,074 shares were granted at an average price of 108.10 pence per share. The closing
price of one Centrica ordinary share as of 31 December 2023 was 140.65 pence. The cost of granted shares
recognised in profit and loss for the year amounts to 19,555 tDKK.
During last year 2,340,615 shares were granted at an average price of 89.11 pence per share. The closing
price of one Centrica ordinary share as of 31 December 2022 was 96.50 pence. The cost of granted shares
recognised in profit and loss for the year amounts to 2,668 tDKK.
Amounts in tDKK 2023 2022
Number of outstanding shares as of 1st January 2,350,791 10,176
Number of shares granted during the period 3,248,074 2,340,615
Number of outstanding shares as of 31st December 5,598,865 2,350,791
21 Auditors’ remuneration
Amounts in tDKK 2023 2022
Statutory audit 3,163 785
Other services 18 290
Total 3,181 1,075
Statutory audit fees listed include 1,187 mDKK of fees relating to audit of the company's subsidiaries.
22 Related undertakings
The Group has subsidiaries in the United Kingdom, Germany, Singapore, Belgium, France and Denmark.
These are listed below.
(a) Parent Company
Centrica Energy Trading A/S is controlled by Centrica Overseas Holding Ltd. The ownership is registered in
the Company’s register of shareholders as holding 100% of the votes and shares. The company is included
in the consolidated financial statements of its ultimate parent, Centrica Plc.
31 December 2023 Principal activity
Country of incorporation/
registered address key* Type
Centrica Plc. Holding company United Kingdom / A Ultimate parent
Centrica Overseas Holding Ltd. Holding company United Kingdom / A Immediate parent
* For list of registered addresses, refer to note 22(d).
20 Related party transactions (continued)
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 49
Notes
22 Related undertakings (continued)
Centrica Energy Trading A/S appears as a subsidiary in the consolidated financial statements for Centrica Plc. which includes the
biggest and smallest group in which the parent company is a subsidiary.
The consolidated financial statements of Centrica Plc. are available at Centrica’s website: www.centrica.com.
(b) Subsidiary undertakings
Investments held directly by Centrica Energy Trading A/S with 100% ownership and voting rights:
31 December 2023 Principal activity
Country of incorporation/
registered address key*
Class of
shares held
Neas Invest A/S Dormant Denmark / B Ordinary shares
Neas Energy Ltd. Energy services and
wholesale energy trading
United Kingdom / A Ordinary shares
Centrica Energy Trading GmbH Energy services and
wholesale energy trading
Germany / C Ordinary shares
Centrica Energy Trading Pte. Ltd. Energy services and
wholesale energy trading
Singapore / D Ordinary shares
Centrica Business Solutions Belgium NV Energy services and
wholesale energy trading
Belgium / E Ordinary shares
Centrica Business Solution UK Optimisation Ltd. Energy services and
wholesale energy trading
United Kingdom / F Ordinary shares
Centrica Business Solutions France SAS Energy services and
wholesale energy trading
France / G Ordinary shares
* For list of registered addresses, refer to note 22(d).
(c) Associates
31 December 2023 Principal activity
Country of
incorporation/
registered address key*
Class of
shares held
Indirect interest and
voting rights (%)
Associates
Vindpark Keblowo ApS Operation of an
onshore windfarm
Denmark / H Ordinary shares 50.0%
* For list of registered address, refer to note 22(d).
(d) List of registered addresses
Registered
address key Address
A Millstream, Maidenhead Road, Windsor, SL4 5GD, United Kingdom
B Skelagervej 1, 9000 Aalborg, Denmark
C Gustav-Mahler-Platz 1, 20354 Hamburg, Germany
D 220 Orchard Road, #05-01 Midpoint Orchard, Singapore 238852, Republic of Singapore
E 2600 Antwerpen, Roderveldlaan 2 BUS 2, Belgium
F Millstream, Maidenhead Road, Windsor, SL4 5GD, United Kingdom
G 60 Avenue Charles De Gaulle 92200 Neuilly-Sur-Seine, France
H Mariagervej 58B, DK 9500 Hobro, Denmark
Group Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 50
Income statement
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Trading income and revenue 4 21,984,461 34,375,916
Cost of sales -18,011,507 -28,937,859
Gross profit 3,972,954 5,438,057
Other operating income 85,091 71,168
Other external expenses -338,003 -173,658
Staff costs 5 -583,920 -650,258
Profit before amortisation and depreciation 3,136,122 4,685,309
Depreciation, amortisation and impairment losses -29,398 -31,931
Operating profit 3,106,724 4,653,378
Received dividends from investments in group enterprises 1,102,066 0
Income from investments in associates using the equity method 816 1,028
Financial income 6 288,239 14,652
Financial expenses 7 -104,914 -79,910
Profit before tax 4,392,931 4,589,148
Tax on profit 8 -769,695 -966,456
Profit for the year 3,623,236 3,622,692
Statement of
comprehensive income
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Profit for the year 3,623,236 3,622,692
Other comprehensive income
Items that will be or have been reclassified to the Income Statement:
Exchange differences on translation of foreign operations 18 0
Other comprehensive income, net of taxation 18 0
Total comprehensive income for the year 3,623,254 3,622,692
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 52
Balance sheet
31.12.2023
Assets
Amounts in tDKK Note 2023 2022
Development projects 46,046 61,795
Development projects in progress 34,696 21,303
Intangible assets 9 80,742 83,098
Land and buildings 108,430 111,671
Leasehold improvements 719 0
Plant and equipment 9,058 6,723
Plant and equipment in progress 4 0
Tangible assets 10 118,211 118,394
Investments in group enterprises accounted for using the cost price method 11 790,018 11,135
Investments in associates accounted for using the equity method 8,538 7,704
Investments in group enterprises and associates 798,556 18,839
Non-current assets 997,509 220,331
Inventories 12 1,329,594 2,552,725
Trade receivables 2,742,440 4,421,449
Deposits related to trading 1,029,255 2,078,434
Receivables from group enterprises 3,838,150 2,429,558
Receivables from associates 3,882 5,425
Prepayments 84,600 150,673
Derivative financial instruments 18,19 3,382,864 7,939,582
Cash and cash equivalents 1,349,905 3,241,638
Current assets 13,760,690 22,819,484
Assets 14,758,199 23,039,815
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 53
Balance sheet
31.12.2023
Equity and liabilities
Amounts in tDKK Note 2023 2022
Share capital 123,507 123,507
Reserve for net revaluation according to the equity method 2,572 1,738
Reserve for development costs 59,679 62,160
Retained earnings 5,850,568 5,225,667
Equity 13 6,036,326 5,413,072
Provision for deferred tax 8 7,192 9,061
Derivative financial instruments 18,19 1,353,183 2,547,253
Debt to group enterprises 159,493 0
Other payables 14 20,072 20,194
Non-current liabilities 1,539,940 2,576,508
Trade payables 18 2,819,810 4,787,018
Other payables 368,823 481,893
Deposits related to trading 341,790 3,162,595
Debt to group enterprises 1,024,548 468,700
Onerous contract provisions 15 174,878 0
Other provisions 16 3,078 22,504
Derivative financial instruments 18,19 1,737,370 5,148,334
Income tax payable 694,772 968,016
Deferred income 16,864 11,175
Current liabilities 7,181,933 15,050,235
Liabilities 8,721,873 17,626,743
Equity and liabilities 14,758,199 23,039,815
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 54
Statement of changes in equity
Amounts in tDKK
Share
capital
Reserve for
net revaluation
according
to the equity
method
Reserve for
development
costs
Extraordinary
dividend
payment
Retained
earnings Total
2023
Balance as of 01.01.2023 123,507 1,738 62,160 0 5,225,667 5,413,072
Dividend payment in the year 0 0 0 -3,000,000 0 -3,000,000
Development costs 0 0 -2,481 0 2,481 0
Share of profit/loss for the year 0 816 0 0 -816 0
Profit/loss for the year 0 0 0 3,000,000 623,236 3,623,236
Other comprehensive income
for the year 0 18 0 0 0 18
Total comprehensive income
for the year 0 834 -2,481 3,000,000 624,901 3,623,254
Balance as of 31.12.2023 123,507 2,572 59,679 0 5,850,568 6,036,326
Amounts in tDKK Share capital
Reserve for
net revaluation
according
to the equity
method
Reserve for
development
costs
Retained
earnings Total
2022
Balance as of 01.01.2022 123,507 193,775 56,682 1,608,136 1,982,100
Adjustment to opening balance 0 -193,065 0 1,345 -191,720
Restated balance as of
01.01.2022 123,507 710 56,682 1,609,481 1,790,380
Development costs 0 0 5,478 -5,478 0
Share of profit/loss for the year 0 1,028 0 -1,028 0
Profit/loss for the year 0 0 0 3,622,692 3,622,692
Other comprehensive income
for the year 0 0 0 0 0
Total comprehensive income
for the year 0 1,028 5,478 3,616,186 3,622,692
Balance as of 31.12.2022 123,507 1,738 62,160 5,225,667 5,413,072
The share capital consists of 123,507,152 shares of a nominal face value of DKK 1 each (fully paid in at an
average price at 1.26).
No shares carry special rights.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 55
Cash flow statement
01.01.2023 - 31.12.2023
Amounts in tDKK Note 2023 2022
Operating profit 3,106,724 4,653,378
Depreciation, amortisation and impairment losses 29,398 31,931
Operating profit adjusted for non-liquid items 3,136,122 4,685,309
Financial income received 288,239 14,652
Financial expenses paid -104,914 -79,910
Corporation tax paid -1,044,808 -129,548
Changes in net working capital:
Inventories 1,223,131 -873,977
Collateral -1,771,626 2,824,247
Derivative financial instruments 1,145,754 -742,928
Receivables 1,905,357 728,260
Payables -2,397,988 -2,344,692
Net cash flow from operating activities 2,379,267 4,081,413
Investment in non-current assets:
Purchase of intangible assets -20,380 -28,805
Purchase and development of intangible assets -6,479 -1,885
Capital increase in subsidiaries -746,100 0
Purchase of businesses, net of cash acquired* -32,783 0
Net cash flow from investing activities -805,742 -30,690
Dividends received 1,102,066 0
Dividends paid -3,000,000 0
Net change in group cashpool arrangements -1,567,324 -1,796,676
Net cash flow from financial activities -3,465,258 -1,796,676
Total net cash flow for the year -1,891,733 2,254,047
Cash at the beginning of the year 3,241,638 987,591
Cash at the end of the year 1,349,905 3,241,638
Cash at end of year specified as follows:
Cash 1,349,905 3,241,638
Total 1,349,905 3,241,638
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 56
1 General information .......................................................... 58
2 Basis of preparation and summery of significant new accounting policies
and reporting changes ........................................................ 58
3 Critical accounting judgements and key sources of estimation uncertainty .................. 58
4 Trading income and revenue .................................................... 59
5 Staff costs ................................................................. 59
6 Financial income ............................................................ 59
7 Financial expenses ........................................................... 60
8 Tax on profit from ordinary activities .............................................. 60
9 Intangible assets ............................................................ 61
10 Tangible assets ............................................................. 62
11 Investments accounted for using the cost price method ............................... 63
12 Inventories ................................................................. 63
13 Distribution of profit for the year ................................................. 63
14 Other payables (non-current) ................................................... 63
15 Onerous contract provisions .................................................... 63
16 Other provisions ............................................................. 63
17 Commitments, lease obligations and guarantees .................................... 64
18 Financial assets and liabilities by category ......................................... 65
19 Financial risk management ..................................................... 65
20 Fair value of financial instruments ................................................ 69
21 Related party transactions ..................................................... 70
22 Auditors’ remuneration ........................................................ 71
23 Related undertakings ......................................................... 71
Notes overview
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 57
Notes
1 General information
Centrica Energy Trading A/S (the ‘Company’) is a subsidiary of the public company Centrica plc, domiciled
and incorporated in the UK, and registered in England and Wales. The address of the registered office is
Skelagervej 1, 9000 Aalborg, Denmark.
The functional currency of the Company is Euro. The presentational currency is Danish Kroner (DKK) in line
with previous years. All values are rounded to the nearest thousand (tDKK).
IFRS is used synonymously with IFRS
(R)
Accounting Standards.
2 Basis of preparation and summery of significant new
accounting policies and reporting changes
The principal accounting policies applied in the preparation of the Company financial statements are
consistent with those of the Group as disclosed in note 4 “Summary of significant accounting policies” to the
consolidated financial statements. Unless otherwise stated, these policies have been consistently applied to
the years presented.
(a) Basis of preparation and changes in accounting policy
The separate financial statements of the Company has been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the EU and further requirements in the Danish Financial
Statements Acts applying to large enterprises of reporting class C.
The Company financial statements have been prepared on a going concern basis and under the historical
cost basis except for gas inventory and derivative financial instruments required to be measured at fair value
through profit or loss.
(b) Changes in accounting policy
Accounting policies for investments in group enterprises have been changed from applying the equity
method to holding such investments at cost.
The reason for the change in policy is alignment with accounting policies in the Centrica Group. Furthermore,
group enterprises are fully consolidated in the Group consolidated financial statements.
Comparative figures have been updated.
As of December 31st, 2023 the accumulated effect of the changes in policy are an increase in the result
for the year of 966 mDKK, assets are reduced by 271 mDKK and equity is reduced by 271 mDKK. As of
December 31st, 2022 the result for the year is reduced by 1,034 mDKK, assets are reduced by 1,248 mDKK
and equity is reduced by 1,248 mDKK.
3 Critical accounting judgements and key sources of estimation uncertainty
The critical accounting judgements and key sources of estimation uncertainty are consistent with those of the
Group as disclosed in note 3 in the Group consolidated financial statements.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 58
Notes
4 Trading income and revenue
Amounts in tDKK 2023 2022
Trading income, net*
Realised trading income 7,655,662 5,670,916
Net change in fair value of commodity derivatives held for trading -374,819 1,107,370
Net change in fair value of inventory held for trading -1,320,383 862,263
Revenue from contracts with customers
Sales of climate certificates 1,644,185 1,252,512
Sales of power and energy related services 14,379,816 25,482,855
Trading income and revenue 21,984,461 34,375,916
* Net change presented is the change in balance sheet value from the start of the year to the end of the year of derivatives and inventory.
Realised trading income consists of settled values for realised contracts.
Centrica Energy Trading A/S carries out almost all activities from Denmark as all handling of physical produc-
tion and trading is done from the main office in Aalborg thus a split of the activity is not relevant. Furthermore
Centrica Energy Trading A/S see the European market as an integrated Pan-European market with more and
more synergies across countries.
5 Staff costs
Amounts in tDKK 2023 2022
Wages and salaries 495,831 623,994
Pension costs 20,674 16,168
Other social security costs 4,464 3,164
Other staff costs 62,951 6,932
Total 583,920 650,258
Average number of employees 397 347
6 Financial income
Amounts in tDKK 2023 2022
Interest income from group enterprises 214,787 4,118
Interest income from associates 224 218
Exchange rate adjustments 17,834 0
Other interest income 55,394 10,316
Total 288,239 14,652
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 59
Notes
7 Financial expenses
Amounts in tDKK 2023 2022
Interest expenses from group enterprises 51 1,977
Guarantee provision 1,986 1,879
Exchange rate adjustments 0 20,760
Interest expenses* 102,877 55,294
Total 104,914 79,910
* Total interest expense calculated using the effective interest method for financial liabilities that are measured at amortised cost.
8 Tax on profit from ordinary activities
Amounts in tDKK 2023 2022
Tax on current year taxable income 733,572 1,009,633
Correction to current tax, previous years 37,992 -44,537
Correction to deferred tax, previous years -1,869 1,360
Total 769,695 966,456
Deferred tax is computed at 22% and is broken down as follows:
Intangible assets -15,959 -18,281
Plant and equipment 3,816 4,269
Current assets 4,951 4,951
Total provision for deferred tax, closing balance -7,192 -9,061
Total provision for deferred tax, opening balance -9,061 -7,701
Provision for deferred tax for the year -1,869 1,360
Effective tax rate
Profit for the year before tax 4,392,115 4,588,120
Calculated tax (22 %) 966,265 1,009,386
Tax value of non-deductible costs and non-taxable income -232,693 247
Correction to current tax, previous years 37,992 -44,537
Correction to deferred tax, previous years -1,869 1,360
Tax on profit 769,695 966,456
Effective tax percentage 17.5% 21.1%
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 60
Notes
9 Intangible assets
Amounts in tDKK 2023 2022
Development projects
Cost price as of 01.01.2023 245,637 217,967
Transfers during the year 6,987 27,670
Disposals during the year -4,315 0
Cost price as of 31.12.2023 248,309 245,637
Amortisations as of 01.01.2023 183,842 158,653
Amortisations during the year 22,255 25,189
Reversal of amortisations on disposals in the year -3,834 0
Amortisations as of 31.12.2023 202,263 183,842
Book value as of 31.12.2023 46,046 61,795
Development projects in progress
Cost price as of 01.01.2023 21,303 20,168
Additions during the year 20,380 28,805
Transfers during the year -6,987 -27,670
Cost price as of 31.12.2023 34,696 21,303
Book value as of 31.12.2023 34,696 21,303
Booked value intangible assets as of 31.12.2023 80,742 83,098
Development projects consists of own developed software. The software is supporting the Asset Manage-
ment business as well as the Trading business.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 61
Notes
10 Tangible assets
Amounts in tDKK 2023 2022
Land and buildings
Cost price as of 01.01.2023 129,027 128,039
Transfers during the year 666 988
Cost price as of 31.12.2023 129,693 129,027
Depreciation as of 01.01.2023 17,356 13,564
Depreciation during the year 3,907 3,792
Depreciation as of 31.12.2023 21,263 17,356
Book value as of 31.12.2023 108,430 111,671
Plant and equipment
Cost price as of 01.01.2023 29,966 28,341
Transfers during the year 5,084 1,625
Cost price as of 31.12.2023 35,050 29,966
Depreciation as of 01.01.2023 23,243 20,293
Depreciation during the year 2,749 2,950
Depreciation as of 31.12.2023 25,992 23,243
Book value as of 31.12.2023 9,058 6,723
Leasehold improvements
Cost price as of 01.01.2023 0 0
Transfers during the year 725 0
Cost price as of 31.12.2023 725 0
Depreciation as of 01.01.2023 0 0
Depreciation during the year 6 0
Depreciation as of 31.12.2023 6 0
Book value as of 31.12.2023 719 0
Plant and equipment in progress
Cost price as of 01.01.2023 0 728
Additions during the year 6,478 1,884
Transfers during the year -6,474 -2,612
Cost price as of 31.12.2023 4 0
Book value as of 31.12.2023 4 0
Booked value tangible assets as of 31.12.2023 118,211 118,394
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 62
Notes
11 Investments accounted for using the cost price method
Amounts in tDKK 2023 2022
Investment in group enterprises
Cost price as of 01.01.2023 11,135 11,135
Additions during the year 778,883 0
Cost price as of 31.12.2023 790,018 11,135
Book value as of 31.12.2023 790,018 11,135
12 Inventories
Refer to note 12 Inventories to the consolidated financial statements.
13 Distribution of profit for the year
Amounts in tDKK 2023 2022
Proposed distribution of profit:
Extraordinary dividend payment 3,000,000 0
Retained earnings 623,236 3,622,692
Total 3,623,236 3,622,692
14 Other payables (non-current)
Refer to note 13 Other payables (non-current) to the consolidated financial statements.
15 Onerous contract provisions
Amounts in tDKK 2023 2022
Onerous contract provisions as of 01.01.2023 0 0
Additional onerous contract provisions in the year 174,878 0
Onerous contract provisions as of 31.12.2023 174,878 0
Centrica Energy Trading A/S holds an onerous contract provision of 174,878 tDKK at year-end relating to the
expected loss from green certificates forward sold to prices below the forward prices at 2023 year-end.
16 Other provisions
Refer to note 15 Other provisions to the consolidated financial statements.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 63
Notes
17 Commitments, lease obligations and guarantees
(a) Commitments and lease obligations
Commitments are not held on the Group’s Balance Sheet as these are executory arrangements, and relate to
amounts that we are contractually required to pay in the future as long as the other party meets its contrac-
tual obligations.
Amounts in tDKK 2023 2022
Commitments in relation to leases 55,547 15,205
Commodity purchase contracts 14,449,334 31,302,379
Transportation capacity 977,650 1,320,142
Total 15,482,531 32,637,726
The maturity analysis for commitments and leases at 31 December is given below:
Amounts in tDKK 2023 2022
Within 1 year 9,416,844 21,262,794
1-2 years 2,862,222 3,650,941
2-3 years 796,417 2,339,583
3-4 years 520,989 1,108,334
4-5 years 513,207 864,153
After 5 years 1,372,852 3,411,921
Total 15,482,531 32,637,726
(b) Guarantees
Amounts in tDKK 2023 2022
The Company's banks have provided guarantees in relation to contractual obligations
at the balance sheet date amounted to 1,356,538 1,212,432
(c) Contingent liabilities
Centrica Energy Trading A/S is the management company of a Danish joint taxation. The company is there-
fore liable in accordance with the rules of the Corporation Tax Act for income taxes etc. for the jointly taxed
companies and also for any obligations to withhold tax on interest, royalties and dividends for these compa-
nies.
The subsidiary Centrica Energy Trading GmbH has opted to apply a local reporting exemption. Centrica
Energy Trading A/S guarantees for the 2024 financial year for any commitments entered into by Centrica
Energy Trading GmbH.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 64
Notes
18 Financial assets and liabilities by category
The table below shows Centrica Energy Trading A/S’s financial instruments in the balance sheet divided into
main categories. The categories indicate how the financial instruments are measured in the financial state-
ments.
Amounts in tDKK 2023 2022
Derivative financial instruments* 3.382.864 7,939,582
Financial assets measured at fair value through profit/loss 3.382.864 7,939,582
Trade receivables 2.742.440 4,421,449
Deposits related to trading 1.029.255 2,078,434
Receivables from group enterprises 3.838.150 2,429,558
Cash and cash equivalents 1.349.905 3,241,638
Financial assets measured at amortised cost 8.959.750 12,171,079
Derivative financial instruments* 3.090.553 7,695,587
Financial liabilities measured at fair value through profit/loss 3.090.553 7,695,587
Trade payables 2.819.810 4,787,018
Deposits related to trading 341.790 3,162,595
Debt to group enterprises 1.184.041 468,700
Financial liabilities measured at amortised cost 4.345.641 8,418,313
* Derivatives financial instruments include both physical and financial contracts. Physical contracts included are considered to meet the conditions
for fair value option in IFRS and treated as derivatives.
19 Financial risk management
The Company’s financial risk management are consistent with those of the Group and are described in note
18 Financial risk management to the Group consolidated Financial Statements.
Market risk management
The Company’s market risk management are consistent with those of the Group and are described in note 18
Market risk management to the Group consolidated Financial Statements.
Liquidity risk management
The Company’s liquidity risk management are consistent with those of the Group and are described in note
18 Liquidity risk management to the Group consolidated Financial Statements.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 65
Notes
19 Financial risk management (continued)
Maturities of trade payables, Group payables and derivative financial instruments are provided in the
following tables:
2023
Amounts in tDKK Ultimo 2023 2024 2025 2026 After 2026
Trade payables 2,819,810 2,819,810 0 0 0
Deposits related to trading 341,790 341,790 0 0 0
Debt to Group enterprises 1,184,041 1,184,041 0 0 0
Derivative financial instruments 3,090,553 1,757,165 510,293 162,869 660,226*
Total 7,436,194 6,102,806 510,293 162,869 660,226
* Concerns large PPA’s with maturity extending to year 2033.
2022
Amounts in tDKK Ultimo 2022 2023 2024 2025 After 2025
Trade payables 4,787,018 4,787,018 0 0 0
Deposits related to trading 3,162,595 3,162,595 0 0 0
Debt to Group enterprises 468,700 468,700 0 0 0
Derivative financial instruments 7,695,587 5,148,555 747,684 401,388 1,397,960*
Total 16,113,900 13,566,868 747,684 401,388 1,397,960
* Concerns large PPA’s with materity extending to year 2033
The table above shows the contractual cash outflows on contracts held. As part of Centrica Energy Trading
A/S’s market risk management, the contracts are to a large extent hedged, with opposite contracts from
which expected inflows of cash are expected. The table below shows the undiscounted contractual cash
flows on asset derivative financial instruments, trade receivables and Group receivables presented in similar
maturity buckets:
2023
Amounts in tDKK Ultimo 2023 2024 2025 2026 After 2026
Trade receivables 2,742,440 2,742,440 0 0 0
Receivables from Group enterprises 3,838,150 3,838,150 0 0 0
Deposits related to trading 1,029,255 1,029,255 0 0 0
Derivative financial instruments 3,382,864 2,298,664 647,677 104,375 332,148*
Total 10,992,709 9,908,509 647,677 104,375 332,148
* Concerns large PPA’s with maturity extending to year 2044.
2022
Amounts in tDKK Ultimo 2022 2023 2024 2025 After 2025
Trade receivables 4,421,449 4,421,449 0 0 0
Receivables from Group enterprises 2,429,558 2,429,558 0 0 0
Deposits related to trading 2,078,434 2,078,434 0 0 0
Derivative financial instruments 7,939,582 5,939,160 783,726 208,788 1,007,908*
Total 16,869,023 14,868,601 783,726 208,788 1,007,908
* Concerns large PPA’s with maturity extending to year 2044.
Credit risk management
The Company’s credit risk management are consistent with those of the Group and are described in note 18
Credit risk management to the Group consolidated financial statements.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 66
Notes
The table below shows the credit quality of the Company’s counterparties.
2023
Amounts in tDKK
Trade
receivables
Derivative
financial
instruments Total
The credit quality of the Company’s counterparties
Minimal risk (Rated A) 926,809 478,769 1,405,578
Low risk (Rated B) 1,696,275 2,770,451 4,466,726
High risk (Rated C) 119,356 133,644 253,000
Total 2,742,440 3,382,864 6,125,304
2022
Amounts in tDKK
Trade
receivables
Derivative
financial
instruments Total
The credit quality of the Company’s counterparties
Minimal risk (Rated A) 1,423,978 1,506,833 2,930,811
Low risk (Rated B) 2,827,093 5,883,114 8,710,207
High risk (Rated C) 170,378 549,635 720,013
Total 4,421,449 7,939,582 12,361,031
19 Financial risk management (continued)
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 67
Notes
The table below shows the financial assets and liabilities that are subject to offsetting.
2023
Related amounts not
set off in the Company
balance sheet
Amounts in tDKK
Gross
amounts of
recognised
financial
asset/liability
Gross
amounts
offset in
the
Company
Balance
Sheet
Net amounts
presented
in the
Company
Balance
Sheet Collateral Net amount
Offsetting of financial assets
Trade receivables 9,865,720 7,123,280 2,742,440 116,235 2,626,205
Receivables from group enterprises, current portion 9,668,745 5,830,595 3,838,150 0 3,838,150
Derivative financial instruments 16,839,097 13,456,233 3,382,864 225,567 3,157,297
Total 36,373,562 26,410,108 9,963,454 341,802 9,621,652
Offsetting of financial liabilities
Trade payables 9,943,090 7,123,280 2,819,810 7,820 2,811,990
Payables to group enterprises 7,014,636 5,830,595 1,184,041 0 1,184,041
Derivative financial instruments 16,546,786 13,456,233 3,090,553 9,508 3,081,045
Total 33,504,512 26,410,108 7,094,404 17,328 7,077,076
2022
Related amounts not
set off in the Company
balance sheet
Amounts in tDKK
Gross
amounts of
recognised
financial
asset/liability
Gross
amounts
offset in
the
Company
Balance
Sheet
Net amounts
presented
in the
Company
Balance
Sheet Collateral Net amount
Offsetting of financial assets
Trade receivables 16,579,446 12,157,997 4,421,449 406,065 4,015,384
Receivables from group enterprises, current portion 21,272,313 18,842,755 2,429,558 0 2,429,558
Derivative financial instruments 65,405,974 57,466,392 7,939,582 2,067,117 5,872,465
Total 103,257,733 88,467,144 14,790,589 2,473,182 12,317,407
Offsetting of financial liabilities
Trade payables 16,945,015 12,157,997 4,787,018 63,976 4,723,042
Payables to group enterprises 19,311,455 18,842,755 468,700 0 468,700
Derivative financial instruments 65,161,979 57,466,392 7,695,587 383,701 7,311,886
Total 101,418,449 88,467,144 12,951,305 447,677 12,503,628
19 Financial risk management (continued)
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 68
Notes
Capital risk management
The Company seeks to maintain an efficient capital structure with a balance of net debt and equity as shown
in the table below:
Amounts in tDKK 2023 2022
Debt 5,631,320 9,931,156
Cash and cash equivalents 1,349,905 3,241,638
Net debt 4,281,415 6,689,518
Equity 6,033,754 5,411,334
Net debt to equity ratio (%) 71% 124%
Debt levels are restricted to maintain a strong credit profile. The Company’s credit standing is important to
maintain limit collateral requirements in energy trading and hedging, and to ensure the Company is an attrac-
tive counterparty to energy producers and long-term customers.
20 Fair value of financial instruments
Reference is made to note 19 Fair value instruments to the consolidated financial statement.
19 Financial risk management (continued)
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 69
Notes
21 Related party transactions
During the year the Company entered into the following arm’s length transactions with related parties:
Amounts in tDKK 2023 2022
Transactions with related parties
Sales of goods and services to group enterprises* 6,893,621 3,997,231
Sales of goods and services to subsidiaries* 194,578 49,555
Purchases of goods and services from group enterprises* 2,475,024 6,062,986
Purchases of goods and services from subsidiaries* 3,766,373 8,242,683
Purchases of goods and services from parent companies* 78,046 44,284
Financial income from parent companies 210,169 4,118
Financial income from group enterprises 4,618 0
Financial income from associates 224 218
Financial expenses to subsidiaries 51 1,977
Related party balances
Receivables from parent companies** 1,876,545 309,221
Receivables from group enterprises* 1,961,605 2,120,337
Receivables from associates 3,882 5,425
Payables to parent companies** 15,444 4,084
Payables to group enterprises* 486,832 38,752
Payables to subsidiaries 681,765 425,864
* Sales to and purchases from group parties, including receivables and payables in this regard, is mainly carried out on EFET terms. Figures
presented include trading income presented net across all counterparties in the income statement. Figures reported above for trading income,
are net by related party.
** Receivables from parent companies mainly relates to distribution of surplus liquidity in the Centrica Group.
Key management remuneration
Reference is made to note 20 Related party transactions in the consolidated financial statement.
Remuneration of key management personal
Reference is made to note 20 Related party transactions in the consolidated financial ftatement.
Remuneration of board of directors
Reference is made to note 20 Related party transactions in the consolidated financial statement.
Share savings programme
Reference is made to note 20 Related party transactions in the consolidated financial statement.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 70
Notes
22 Auditors’ remuneration
Amounts in tDKK 2023 2022
Statutory audit 1,976 660
Other services 18 290
Total 1,994 950
23 Related undertakings
Reference is made to note 22 Related undertakings to the consolidated financial statement.
Parent Company Financial Statements
Centrica Energy Trading A/S | Annual Report 2023 71
