Danske Commodities, owned by Norwegian oil and gas producer Equinor, posted full-year adjusted earnings before tax of 359 million euros ($385.64 million), down from a record 2.25 billion euros in 2022.

"In a year, when markets started to stabilise after the energy crisis, market participants had to adjust to a new reality with declining energy prices and decreasing market volatility," CEO Helle Oestergaard Kristiansen said in a statement.

The company expects earnings before tax this year of between 150 million and 350 million euros, it said in its annual report.

In the wake of the war in Ukraine and the need to replace high volumes of lost Russian gas deliveries to Europe, energy markets soared both in absolute prices and volatility in 2022, resulting in massive profits for traders.

However, even with the war still going on, markets have steadied, with Danske Commodities highlighting lower energy demand, high gas storage levels and a mild European winter.

"In 2024 we expect to have continued low volatility and low prices," Kristiansen told Reuters in an interview on the annual results.

For Danske Commodities, which specialises in managing renewable power assets, the focus is on growing its asset portfolio by another 20% this year from 12,000 megawatts (MW), the CEO added.

The company has also invested in weather analysis infrastructure, its algorithmic trading setup and flexibility in power production to help manage volatile short-term markets.

"We have seen very, very low prices and these low prices are especially set by solar power," Kristiansen said, adding solar capacity has grown rapidly in some countries.

Danske Commodities is active in 42 countries, including Australia, the US, Brazil, Japan and all major European markets.

(Reporting by Nora Buli, editing by Stine Jacobsen and Terje Solsvik and Louise Rasmussen and Miral Fahmy)

By Nora Buli