The company has strengthened its core business, reducing the cost base
March 18, 2016: Danske Commodities has strengthened its position significantly in 2015. Through a transformation of the company’s operating model Danske Commodities have focused on ensuring operational excellence, effective innovation and profitable growth.
“I am very pleased to see that our focus on our core business and operational excellence is working, and that we – thanks to the dedication, commitment and passion of our employees – are now in a strong position for the future,” says CEO Dirk Mausbeck.
The transformation reflects directly in Danske Commodities’ improved financial performance with EBT rising to EUR 30.7 million, underpinned by a 22% cost base reduction and improved transparency and collaboration through a clear and simple organisational structure. These improvements were achieved while growing Danske Commodities’ trading and customer businesses, with revenue increasing by 17% to EUR 2,936.3 million and gross profit rising slightly to EUR 82.1 million.
Repositioned strategy
In Q2 Danske Commodities revised its existing strategy to give it a clearer commercial focus. The strategy, “One Team Creating Profitable Growth”, aims at leveraging the company’s trading and customer business, while at the same time investing in long-term growth opportunities.
A clear indication of Danske Commodities’ new strategy is a 15-year Power Purchase Agreement (PPA) signed with the Beatrice Offshore Wind farm in the UK in late December. The PPA combines Danske Commodities’ renewables management experience and short-term trading capability with a long-term focus in the UK market.
Another example is Danske Commodities’ Virtual Power Plant, Connect, which was also launched in 2015. The Virtual Power Plant helps customers optimise their assets, so that they get the most out of their flexibility, thereby turning volatility into profit.
Operational excellence
As part of ensuring effective processes and long-term competitive strength, Danske Commodities has decided to invest in a new Energy Trading Risk Management (ETRM) system, replacing the existing internally developed solution. Implementation of the new ETRM system has kicked off in 2016.