Denmark

Where to put Europe’s bank regulator? Try Bulgaria

26 May 2017

Brussels has invited member states to bid to host the European Banking Authority when its current host, Britain, quits the EU. The EBA hasn’t exactly dazzled in its handling of bank stress tests. But it could be a decent trophy for a non-euro country that feels unloved by the bloc.

DONG’s green energy premium is a work in progress

24 May 2017

By hiving off its North Sea oil and gas assets for $1.3 bln, the state-owned Danish utility is now one of the biggest clean energy pure-plays. Yet its stock market value does not reflect this unique position. A 20 pct discount to German rival Innogy seems excessive.

Volvos plus FX trading defies even Chinese logic

11 May 2017

Geely, the Chinese owner of the sensible Swedish cars, is buying into a Danish trading platform. Mainland companies are pouring money into foreign finance and Saxo Bank’s fintech knowhow has allure. It's hard to see what use Geely’s carmaking experience will be here, though.

New captain can steer Maersk into calmer waters

8 Feb 2017

The ailing Danish shipping and oil conglomerate reported disappointing fourth-quarter results, halved its dividend and replaced its chairman. Yet a rising oil price, recovering freight rates and Maersk’s coming split mean former SAP boss Jim Snabe is boarding at a turning point.

Carlsberg boss grapples with stubbornly flat pint

8 Feb 2017

The Danish brewer’s full-year results show Cees ‘t Hart’s turnaround plan is helping profit margins. He also closed a valuation gap with Heineken and beat AB InBev on investor return since taking over. But Carlsberg’s presence in tough markets caps how much more can be done.

No cure for Big Pharma’s diabetes problem

28 Oct 2016

Sanofi and Novo Nordisk’s earnings from diabetes drugs are collapsing. Financial remedies are scant. Novo is cutting costs and scraping investment, while Sanofi is buying back shares and prowling for acquisitions. At least the latter’s stock is already cheap.

Shrink to greatness? It’s not always that simple

22 Sep 2016

Danish conglomerate Maersk just said it will break up. The shares barely moved. Carving up a complex corporate beast can make great sense - think HP. But some hybrid companies that resist being split, like Rolls-Royce, ABB and AB Foods, may have a point.

Nets payment IPO calls for point-of-sale discount

13 Sep 2016

The top end of the Danish payments firm's price range would see it valued at 16 times 2016 EBITDA. That would be a premium to rival Worldpay, which is growing its revenue faster. Nets is throwing off buckets of cash. But the cyber risk surrounding payments calls for caution.

Nets IPO offers defensive front in payments war

1 Sep 2016

The Nordic payments firm is listing after just two years of private equity ownership. Valued alongside card network and processing peers, its equity could be worth $5 bln. New rules on digital banking may explain the timing, but Nets is less at risk than more niche players.

Vestas is one blade short of a full turbine

18 Aug 2016

After a much better second quarter, the resurrected Danish wind turbine maker has increased its operating profit forecast for 2016. Successful cost cuts and rising demand for green power create strong tailwinds. It’s time for the $16 bln group to ditch a parsimonious dividend policy.

Carlsberg barely livens up a lousy party

17 Aug 2016

The Danish brewer missed first-half sales and operating profit expectations. Its cost-cutting strategy is starting to bear fruit in better profit margins. But even a perfectly executed turnaround risks being watered down by exposure to some of the world’s trickiest beer markets.

Cheap wind energy can deal final blow to Hinkley

8 Aug 2016

Electricity from offshore wind farms costs a third less than in 2013. It now undercuts power costs at the two new nuclear reactors planned in the UK. With prices falling further and low project risk, the case for pulling the plug on the Hinkley Point plant is building.

Novo Nordisk premium will survive drug wars

5 Aug 2016

The Danish pharma group's shares fell more than 8 percent after it lowered profit and sales guidance and warned of lower prices in the key U.S. insulin market. Such pressures won't abate. Still, in a growing market, Novo warrants a premium over peers. Just a less hefty one.

Investors cast hopeful eye on new bank debt

9 Jun 2016

Danish lender Nykredit is the first to issue bonds that take losses when a bank enters resolution. Debt investors are keen to buy these bail-in instruments at affordable prices. If regulators do a good job winding down banks - or are too scared to do it - it might be a good bet.

Goldman’s DONG windfall leaves gains for Danes

31 May 2016

The Wall Street bank will have doubled its money in two and a half years when Danish state-owned utility DONG lists. The country’s socialists quit the ruling coalition in protest at Goldman’s $1.2 bln investment. But its cash sped a pivot to green energy at just the right time.

European IPO market regains its senses

26 May 2016

Danish renewable energy utility DONG priced its initial public offering at up to $16 bln, suggesting a forward EBITDA multiple in line with stricken carbon-heavy peers. If it sounds dull, that’s the point. European IPOs are still a buyer’s market, but maybe now a rational one.

RWE and DONG at opposite ends of green power shift

12 May 2016

The soon-to-IPO Danish utility DONG embraced renewable energy early. The result is strong growth and healthy returns. Late movers like German RWE are suffering badly. Its shares have more than halved in three years. Capital is leaving the old and dirty, and going into the new.

Fintech’s two big ideas are a decade apart

7 Apr 2016

Blockchains and open-access consumer finance could each conceptually transform banking. But customers will be able to force European lenders to divulge current account data to third parties from 2018, while mainstream adoption of distributed database tech will take far longer.

Bang & Olufsen buyout hinges on China bass boost

22 Mar 2016

The Danish electronics maker is in bid talks with Chinese luxury distributor Sparkle Roll. Both companies’ business models are under pressure. At B&O’s inflated $447 mln price it would be hard to make a deal stack up –  unless sales can be massively increased in China.

Maersk hasn’t yet reached its low water mark

10 Feb 2016

Cheap oil and collapsing freight rates hit the Danish conglomerate even harder than expected. A $2.6 bln writedown on oil assets and a dismal year-end sent 2015 net profit down 82 pct. A bleak outlook suggests Maersk’s dividend, and its valuation, may be unsustainable.