COPENHAGEN, June 4 (Reuters) - Danish energy trader

InCommodities, backed by Goldman Sachs ( GS ), on Tuesday reported a

plunge in its pre-tax profit for 2023 to 136 million euros, just

10% of its record profit seen a year earlier, as energy markets

returned to calmer waters.

In 2022, the Aarhus-based company, which trades power and

gas in Europe, the United States and Asia, had recorded a profit

before tax of 1.4 billion euros ($1.52 billion).

Goldman Sachs ( GS ) and selected investors own a 15% stake in the

company while its four founders and employees own the rest,

according to its annual report.

"There's no doubt that 2023 was a return to more normal risk

levels in the market in contrast to 2022, where obviously gas

prices and fuel prices in general sparked a fury in the market,"

CEO Jesper Johansen told Reuters.

In 2022, Energy traders benefited massively from the

volatility in the wake of the war in Ukraine and the need to

replace high volumes of lost Russian gas but have since seen

earnings drop as markets have normalized.

Gas trading volumes at InCommodities fell to 947.7 terawatt

hours (TWh) from 1,569 TWh in 2022, while power trading volumes

fell to 213.7 TWh from 237.0 TWh.

InCommodities said it has allocated a significant portion of

its profits towards strengthening its equity position, to ensure

it can handle financial risks as those seen in 2022 more

effectively.

The turmoil in the energy markets in 2022 led to increased

margin calls that required substantial capital buffers and even

saw some bankruptcies among energy traders.

"There's a new geopolitical situation after 2021-22 and

that's completely reshaped the global energy landscape. It's

become more unpredictable," Johansen said.

For Europe, dependency on other regions of the world in

terms of energy supply poses a risk that is likely to persist in

the coming years and decades, he added.

The company is also focusing on finding other opportunities

in renewable energy trading, Johansen said.

InCommodities launched its Renewables Asset Management unit

specialising in power purchase agreements for renewable energy

in 2023.

By the end of the year, its activities in Germany had risen

to 1,210 megawatts (MW), from 410 MW at the launch, and there

are plans to expand the business to the Nordics, Japan and

Australia this year, the company said.

($1 = 0.9217 euros)