Significant negative result for Obton A/S in 2024

Obton A/S reports a substantial pre-tax loss for 2024, reflecting the inherent risks of project development.

The preliminary result for Obton A/S for the financial year 2024 is expected to show a loss in the range of DKK -1.6 to -1.7 billion before tax. This appears from the company’s annual report, which is expected to be approved at the ordinary board meeting in the second half of June 2025.

The result reflects the extensive risk exposure associated with Obton’s role as a developer of large-scale energy parks—including construction risk, upgrades of existing parks, financing, and fees to external advisors. Furthermore, shifting market conditions in the energy sector have had a significant negative impact on the 2024 result.

“This is a substantial loss and clearly an unsatisfactory result. The loss is a consequence of the considerable risk the company has historically assumed on a number of core projects, which have faced far greater challenges than initially anticipated. In addition, a significant portion of the loss is related to provisions for receivables and impairments of project values over the past few years. These challenges are not unique to Obton but are also affecting other players in the sector,” says Sandra Grauers Nilsson, CEO of Obton A/S.

Impairments and Provisions Drive the Loss

The expected loss primarily stems from two factors:

• Impairments and provisions related to projects that have encountered more severe and prolonged difficulties than originally expected. These issues mainly originate from the 2021–2023 period, a time marked by rapid growth in both the number and scale of projects, and reflect the development risk undertaken by Obton.
• Wind-down of the previous business model involving the sale of investments in energy parks to external investors, a practice that was discontinued in 2024.

The historical business model—based on offering renewable energy investment projects to semi-professional and professional investors—is currently being phased out. This is a response to shifting market conditions and a recognition that the model is no longer viewed as sustainable in terms of optimizing energy park value.

Dialogue with Funds
As previously announced, Obton A/S is engaged in dialogue with several funds regarding the formation of an integrated energy company with capabilities across the entire value chain. The focus is on operational optimization, market risk management, robust portfolio development, and growth aligned with current market conditions. This initiative is a response to the need for a more effective and long-term structure—better aligned with changing market realities and investor expectations for improved returns and exit opportunities.

As part of the company’s strategic transformation and the shift toward a future structure as an integrated energy company, a new executive team has been established. At the helm is Sandra Grauers Nilsson, who brings extensive experience from senior roles in energy production and renewable energy project development.

“We’ve made a series of tough decisions, which are reflected in this year’s result. But these decisions are also laying the foundation for a new solution—one that we believe is the right path forward. It’s no secret that this is a challenging situation with no quick fixes. However, we believe we have a solid plan going forward, which holds significant potential for all stakeholders,” says Sandra Grauers Nilsson.