Goldman Sachs-backed Danish energy trader InCommodities is expanding into U.S. physical natural gas markets after profits plunged as volatility faded across European energy markets, Bloomberg reported on Monday.
The company reported fiscal 2025 pre-tax profit of €2.95 million ($3.41 million), down from €72.5 million a year earlier and well below its original target range of €85 million to €195 million. InCommodities attributed the decline largely to calmer market conditions that reduced trading opportunities and compressed margins.
The sharp downturn is a major reversal from the lucrative conditions created by the Russia-Ukraine war inside Europe’s power and gas markets.
For European energy traders, the easy profits generated during the energy crisis have largely disappeared. Many are now searching for growth through LNG-linked gas markets, renewable energy services and physical trading businesses capable of generating earnings even when volatility remains subdued.
With that in mind, InCommodities is looking elsewhere for growth.
The company plans to build a larger presence in North American physical gas markets, leveraging an Austin, Texas office that has traded power in the region since 2020. To lead the expansion, InCommodities has appointed former Gunvor executive Rich Brockmeyer as Head of North America.
The move comes as the U.S. continues to strengthen its position as the world’s largest LNG exporter. Rising LNG exports have increasingly linked North American gas prices to developments in Europe and Asia, creating new opportunities for traders able to navigate both physical and financial markets.
Unlike power trading, physical gas trading provides access to transportation, storage and supply arrangements across the North American energy system, opening a significantly larger market for companies seeking new revenue streams.
At the same time, InCommodities is expanding its renewable energy services business across Europe, offering power purchase agreements and risk-management products to renewable energy producers and corporate power buyers. As wind and solar generation continue to grow, developers increasingly rely on traders to manage price exposure, production imbalances and revenue certainty.
The company is also expanding in Asia-Pacific, where it recently completed its first futures trades in Japan’s power market. Japan’s electricity market has attracted growing interest from international trading firms as liquidity improves and market participation expands.
By Alex Kimani for Oilprice.com
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