Danske Commodities profit soars amid 'unprecedented' volatility
OSLO, May 3 (Reuters) - Danish energy trader Danske Commodities on Wednesday reported an eightfold rise in profits for 2022, driven by record prices and "extreme" market volatility, but the company expects results to drop this year to around the level of 2021.
Russia's invasion of Ukraine propelled the price of natural gas and electricity in Europe to record highs last year although the cost of energy has since fallen sharply amid lower demand, milder weather and a greater inflow of liquefied natural gas.
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Danske Commodities, owned by Norwegian oil and gas producer Equinor, posted full-year adjusted earnings before tax of 2.25 billion euros ($2.48 billion), up from 265 million euros in 2021, which was also the previous record.
The company delivered a strong trading performance amid "unprecedented markets in terms of price levels and volatility", the company said, adding that the situation had been extreme.
"I am proud that we as a company helped bring balance and liquidity to European energy markets in what was a turbulent year," CEO Helle Oestergaard Kristiansen said in a statement.
"All things considered, we expect earnings in 2023 to return to a level closer to our financial results in 2021," she said.
Europe's benchmark TTF front-month wholesale gas contract hit a record 343.08 euros per megawatt hour (MWh) in August, but has since fallen to below 40 euros/MWh.
Danske Commodities is active in 40 countries, including Australia, the United States, Brazil and major European energy markets. ($1 = 0.9073 euros) (Reporting by Terje Solsvik, editing by Gwladys Fouche)