EEX - European Energy Exchange AG

04/30/2019 | Press release | Distributed by Public on 04/30/2019 04:37

2018 Financial Year: EEX Group achieves Record Result – EEX Group successful in power, natural gas and emissions trading worldwide

In 2018, EEX Group significantly increased its sales revenue and annual net profit achieving the best corporate result in its history so far. On the power market, EEX Group again recorded the biggest power trading volume worldwide. On the markets for emission allowances and natural gas, EEX Group was the second- and, respectively, third-biggest trading platform worldwide in the past financial year. In North America, EEX Group launched new contracts for emission allowances and also strengthened its presence in Asia with the establishment of EEX Asia. In total, the Group has further expanded its global position and generated significant volume growth in almost all its markets.

'In the past financial year, we continued to bring volumes from the over-the-counter market to our exchange platform and, as a result, expanded our market share in the existing markets', explains Peter Reitz, Chief Executive Officer of EEX. 'Both in Europe and North America, we have set new record volumes on the Power Derivatives Market which is the mainstay of our revenues. EEX Group also achieved significant double-digit growth in the other markets, which is reflected in our consolidated result.'

The EEX Group sales revenue increased by 19% to EUR 267.7 million. The earnings before taxes (EBT) amounted to EUR 92.1 million compared to EUR 74.2 million. The annual net profit rose by 24% to EUR 66.7 million (2017: EUR 53.9 million). Iris Weidinger, EEX Chief Financial Officer, explains: 'EEX Group has set new records in terms of revenues and earnings in 2018, driven by the continued diversification of our offerings into new products and regions. At the same time, we further invest in infrastructure and personnel in order to continue on our growth path.'

On the Group's power markets, the significantly higher trading volumes (which increased from 3,760.7 TWh in 2017 to 4,962.1 TWh in 2018) led to a strong increase in sales revenue: On the European power derivatives markets of EEX revenue rose by 21% to EUR 76.6 million (2017: EUR 63.6 million). The revenue on the power spot markets operated by EPEX SPOT increased by 7% to a new record of EUR 72.6 million (2017: EUR 67.7 million). Moreover, the revenue from the North American Nodal Exchange power markets increased to EUR 11.6 million (May - December 2017: EUR 5.4 million).

In the natural gas business, the sales revenue of the PEGAS gas trading platform rose by 16% to EUR 44.9 million in 2018 (2017: EUR 38.8 million). The volume decline on the derivatives market to 851.7 TWh (2017: 1,153.9 TWh) was more than compensated by above-average growth on the spot market of 34% to 1,111.2 TWh (2017: 827.7 TWh).

In total, all other segments (Environmental products, Agriculturals, Global Commodities, Clearing Cooperations as well as Registry and Market Data Services) reached a sales revenue of EUR 21.3 million, which corresponds to an increase of 46% as against the previous year (2017:
EUR 14.5 million). In particular, the doubling of the trading volume in the markets for emission allowances to 2,896.6 million tonnes of CO2 (2017: 1,380,5 million tonnes of CO2) contributed to this development.

With a view to the current financial year, Peter Reitz explains: 'We will continue our strategy of growth in three dimensions. In the existing markets, we are working to continuously increase our market share. In addition, we are expanding the geographic reach of our offering, for example by launching new power futures for Southeastern Europe and gas products for Spain. And thirdly, we open up new business areas such as the recently launched Trucking Freight Futures on Nodal Exchange. The positive volume development in our power and natural gas markets in the first quarter of 2019 shows that we are on track for further growth.'

EEX Group provides market platforms for energy and commodity products across the globe and provides access to a network of more than 600 trading participants. The group offers trading in energy, environmental products, freight, metal and agriculturals as well as subsequent clearing and registry services. EEX Group consists of the trading venues European Energy Exchange (EEX), EPEX SPOT, Powernext (which operates the PEGAS platform), EEX Asia, Power Exchange Central Europe (PXE) and Nodal Exchange as well as the registry provider Grexel Systems and the clearing houses European Commodity Clearing (ECC) and Nodal Clear. EEX is a member of Deutsche Börse Group. More information: www.eex-group.com.

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