Key facts
- Danish energy trader InCommodities is expanding into U.S. physical natural gas markets.
- The company's pre-tax profit for fiscal 2025 fell to €2.95 million ($3.41 million) from €72.5 million a year earlier.
- InCommodities cited calmer European market conditions for the profit decline.
- The firm is appointing Rich Brockmeyer as Head of North America to lead the U.S. expansion.
- InCommodities is also growing its renewable energy services in Europe and futures trading in Japan.
Goldman Sachs-backed Danish energy trader InCommodities is shifting its focus to U.S. physical natural gas markets following a dramatic collapse in profits. The company's pre-tax profit for fiscal year 2025 plummeted to €2.95 million ($3.41 million), a stark contrast to the €72.5 million earned the previous year and significantly below its target range of €85 million to €195 million.
InCommodities attributes this sharp downturn to the fading volatility in European energy markets, which has compressed trading margins and reduced opportunities. The lucrative conditions that arose during the Russia-Ukraine war have largely dissipated, forcing many European energy traders to seek new avenues for growth.
To navigate this new landscape, InCommodities is building a stronger presence in North America, leveraging its existing Austin, Texas office. The company has appointed former Gunvor executive Rich Brockmeyer as Head of North America to spearhead this expansion. This move aligns with the U.S.'s growing role as a major LNG exporter, increasingly connecting North American gas prices to global markets and creating new trading prospects.
Beyond physical gas trading, which offers access to a broader range of transportation, storage, and supply arrangements, InCommodities is also expanding its renewable energy services across Europe. This includes offering power purchase agreements and risk-management products to renewable energy producers and corporate buyers. Furthermore, the company has initiated futures trades in Japan's power market, seeking opportunities in the increasingly liquid Asia-Pacific region.