Friday 6 July 2018

Equinor has reached agreement to buy 100% of the shares in Danish energy trading company Danske Commodities (DC) for EUR 400 million, with smaller contingent payments depending on DC’s performance over the next couple of years. This acquisition – of one of Europe’s largest short-term electricity traders – supports Equinor’s development towards becoming a broad energy company. DC is also active in short-term gas trading and provides energy market services.

DC was founded in 2004 and is based in Aarhus, Denmark, with 284 employees. In 2017 it traded 318 terawatt hours of electricity across 37 countries, equal to more than two times Norway’s annual electricity consumption, and 389 terawatt hours of gas across 18 countries, around one third of total Norwegian gas production. It completes more than 4000 trades and processes around 173 terabytes of data every day, 24 hours a day, 365 days a year.

The transaction supports Equinor’s move from being an upstream oil and gas company to becoming a broad energy company. Equinor is building a material industrial position in profitable renewable energy, and expects to invest 15-20% of its capital expenditure in new energy solutions by 2030. The transaction will enable both Equinor and DC to create value along the full electricity value chain and provide DC with a partner that supports their growth plans.

Danske Commodities’ CEO Henrik Lind will continue to lead the business for at least 12 months after the transaction closes; the senior management group will remain in place, ensuring continuity for customers, employees and counterparties.

Closing is subject to certain conditions, including European Commission approval.