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Energy retail and services

Energy trading company financial model, built free.

A three-statement Excel model for an energy trading and marketing, built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Buys and sells electricity, gas and environmental products — originating structured contracts for customers, optimising contracted assets and taking positions — earning gross margin on volumes traded while posting collateral against open positions.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Energy trading company sample model.xlsx
The How It Works sheet of the sample energy trading company model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for an energy trading company.

  1. How it earns revenue3 formulas
    Trading gross margin · The business
    Energy deliveredEnergy delivered under new contractsEnergy delivered under the opening book
    Trading gross margin · The business
    Cost of energy tradedEnergy deliveredWholesale electricity price (nominal)from wholesale electricity price curve
    Trading gross margin · The business
    Trading revenueCost of energy tradedMargin on energy delivered
  2. What drives its costs3 formulas
    Operating expenses · The business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · The business
    Total average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · The business
    Total staff costsSalariesOn-costsOther costs per FTE
  3. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  4. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

15 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Trading gross marginStructured origination marginGross margin from buying and selling energy and environmental products, structured origination and asset optimisation.
  • Collateral and marginingInitial and variation marginCash posted to exchanges, market operators and counterparties against open positions and prudential requirements.
  • Wholesale electricity price curveAdviser price curveThe wholesale electricity price forecast used by the revenue and cost parts that need it.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Discount rate (WACC)CAPM at target gearing
Key numbers

The numbers it tracks.

  1. 01volumes traded
  2. 02gross margin per MWh or GJ
  3. 03origination margin
  4. 04collateral posted
  5. 05value at risk
  6. 06EBITDA
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in energy retail and services.

Every energy and utilities model

Looking for an energy trading company financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.