Major improvement After several years during which Verdo has been quite affected by historical heating cases, 2021 saw good progress. Both revenue and profit have improved significantly compared to previous years.
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021 was another year impacted by COVID-19, but despite the restrictions, the economy generally advanced, with rising prices, low unemployment and a high level of optimism. This is a big change from 2020, where we saw great reticence among our customers. The positive change was also reflected in energy and fuel prices, and the general level of activity in society. 2021 was a normal year in terms of the climate, matching the average for the 1991 to 2020 period. This applies to both temperature and precipitation, while the year was slightly less windy than usual. The latter undoubtedly had an impact on wind power production, helping push up electricity prices. Results Revenue in 2021 was DKK 2.9 billion, while operating profit (EBITDA) was DKK 152 million. Both substantially exceeded the budget and expectations. Net profit for the year was DKK 160 million, significantly above the budget figure. The primary reason for the high profit
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Annual report 2021
before tax is that an agreement was reached with the Norlys Group during the year regarding the sale of Verdo Tele A/S. The transaction had not yet been completed at the end of the financial year, but is awaiting the approval of the Danish Competition and Consumer Authority. In accounting terms, Verdo Tele A/S is therefore treated as discontinuing operations, and is recognised at the bottom of the income statement at DKK 134 million. The amount is shown partly as the annual profit in Verdo Tele A/S, and partly as a revaluation of the shares in the company to a value corresponding to the sale price. Profit from continuing operations after tax is DKK 26 million, while the profit from discontinuing operations is DKK 134 million, as just noted. The annual profit is therefore DKK 160 million after tax. If operations are normalised – i.e. to exclude provisions, the gain on shares and discontinuing operations – EBITDA is DKK 238 million. This figure expresses what ordinary operations have returned
in 2021. This is also better than in previous years. However, there are more reasons for this year’s good results than the sale of Verdo Tele A/S. High prices for electricity and fuels have had a positive impact on Verdo Produktion A/S (CHP plant at the Port of Randers), Verdo Go Green A/S (Elsalg), Verdo Trading A/S and Carbon Partners AS. In addition to the rising prices during the year, we have seen a volume increase in fuel and carbon trading, which is very pleasing. Conversely, Verdo Teknik and Verdo Energy Systems have seen lower activity than expected. The balance sheet and equity have increased considerably as a result of this year’s results. The balance sheet total is now DKK 3.2 billion, while the solvency ratio increased to 25%. Both are extremely satisfactory, after several years with less satisfactory key figures. Commercial and regulated business Operating profit (EBITDA) in Energi &
