Significant negative result for Obton A/S in 2024

Obton A/S has published its annual report for 2024, showing a pre-tax loss of DKK 1,52 billion.

The result reflects the risks Obton A/S has assumed as a developer of energy parks — including construction risk, the upgrading of existing parks, financing costs, and fees paid to external advisors. Shifting conditions in the energy markets have also impacted performance in 2024.

“This is clearly an unsatisfactory result and reflects the level of risk the company has historically taken on in a number of key projects, which have proven significantly more challenging than anticipated. A substantial portion of the result is due to provisions for receivables and impairments of capitalised project values,” says Sandra Grauers Nilsson, CEO of Obton A/S.

Impairments and provisions drive the loss

The negative result is primarily driven by two factors:

• Impairments and provisions related to projects that have faced greater and more prolonged difficulties than originally expected. These issues largely stem from the period 2021–2023, when the number and scale of projects grew significantly — and reflect the risks Obton A/S undertook as a developer.

• Winding down of the former business model involving the sale of renewable energy investment projects to investors. This model was phased out in 2024 as a response to major market changes.

A strategic response

The developments of the past year underscore the need for a new structure. As previously announced, Obton A/S has been in dialogue with several funds regarding the establishment of an integrated energy company. Specifically, the boards of the three funds — Obton Stabil, Obton Impact, and Obton Fond 1 — have signed a merger plan to form a new integrated energy company under the working title “ReCo.” The new company will also acquire selected business areas and key competencies from Obton A/S and will be owned and controlled by the funds. Final approval by fund investors is still required. In connection with the planned merger, a prospectus was prepared and approved by the Danish Financial Supervisory Authority (Finanstilsynet) on 30 June 2025.

ReCo is a strategic response to the need for a more effective and long-term structure — one that better aligns with current market dynamics and increasing investor expectations for improved returns and exit options.

Sandra Grauers Nilsson, who joined as CEO of Obton A/S on 1 February 2025, is expected to take on the role of CEO of ReCo. She brings many years of executive experience in energy production and renewable energy development, including from the Swedish state-owned energy company Vattenfall.

“We have faced significant market challenges in recent years. In that context, it is encouraging that the funds have agreed to pursue a merger that also draws on competencies from Obton A/S. This has resulted in a joint merger plan. ReCo is not a quick fix — it is an ambitious and well-considered proposal for how a new energy company, with a focus on continuous operational improvement, can achieve competitiveness in the energy market and thereby create a stronger return foundation for investors,” says Sandra Grauers Nilsson.