Annual Report: Improving earnings and overall results in a volatile energy market
Global Risk Management has continued implementing new strategic initiatives even though part of the year was heavily affected by oil market volatility and COVID-19. The financial numbers improved, providing additional means to continue the process of becoming a full-scale, international energy trading house.
In the financial year, which ended on 30 April 2020, the net result increased to 8.9 M USD in the financial year 2019/20 compared to 7.0 M USD in 2018/19. The net trading income increased by more than 20% compared to the previous year, amounting to 18.7 M USD.
Peder D. Møller, CEO and member of the Executive Management, comments on the Annual Report: “We find the financial result satisfactory, especially considering the changed market conditions brought about by the COVID-19 pandemic. It has affected several of our client segments, disrupting their business activities, and emerged almost simultaneously with the collapse in oil prices. Both events entailed the need for our competences within proactive, customised hedging solutions. In close cooperation with clients and counterparties our dedicated employees have been able to manage the augmented risk environment and uphold a high activity level”.
Over the year, full focus has been given to taking a proactive approach and expand the products and services portfolio to include other commodities besides oil and oil-related products. This is a step towards adapting to the changing energy market and needs from clients around the world where oil is being replaced by other energy sources and the synergies of our competences can be utilised and optimised. An important step in that direction is the addition of an experienced cross-commodities team in Paris as well as other, highly qualified colleagues over the year.
CFO Niels Hyldegaard Kristensen adds: “Most of the world has experienced rough seas over the past months, so being able to increase activities and deliver solid financial results in this period is excellent. Our solid committed facilities with international banks proved its worth as the oil market collapsed, providing ample liquidity to meet all obligations towards counterparties and clients”.
For the coming year, the strong financial position of the company will enable further initiatives towards a more diversified product and services portfolio within energy commodity trading.