EEX Group further expanded its global position and achieved significant volume growth in almost all business fields in 2017.
Following the acquisition of Nodal Exchange and the migration of the PXE markets to the EEX platform, EEX Group recorded the biggest power trading volume worldwide for the first time in 2017 and now provides access to commodity markets in three time zones.
“The acquisition of Nodal Exchange constituted an important milestone in terms of our global reach. As a result, EEX Group now provides access to the three major markets: Europe, Asia and North America,” says Peter Reitz (pictured), Chief Executive Officer of EEX.
At the same time, the biggest pillar of revenue within EEX Group, the Power Derivatives Market faced considerable market uncertainty as a result of the planned split of the German-Austrian price zone.
“By launching the Phelix-De Future, we were able to directly address those uncertainties and restore confidence in the market within a very short period of time and in close consultation with our market participants,” adds Reitz.
Overall, the EEX Group sales revenue declined by 4 per cent to EUR225.3 million.
Iris Weidinger, Chief Financial Officer of EEX, says: “With this result, we almost repeated the record achieved in the previous year. In view of the difficult regulatory environment and the decline in the transaction revenue on the Power Derivatives Market which is connected with it, we are very pleased with this result.” Last year, the annual net profit was EUR53.9 million (2016: EUR57.7 million).
In 2017, the transaction revenue on the Power Derivatives Market declined by 27 per cent to EUR63.6 million (2016: EUR87.4 million). As against the previous year, the trading volume in this market declined to 3,217.3 TWh (2016: 3,920.3 TWh). This volume includes the power derivatives markets of the Prague-based Power Exchange Central Europe (PXE), which EEX transferred to its platform in mid-2017. On the EPEX SPOT Power Spot Market, the transaction revenue (EUR67.7 million) was three per cent higher than the record achieved in the previous year (2016: EUR65.7 million). In addition, the Nodal Exchange power derivatives market contributed transaction revenue of EUR5.4 million within the new US Commodities business field for the first time.
In the natural gas business field, transaction revenue of the PEGAS platform rose by 15 per cent to EUR38.8 million in 2017 (2016: EUR33.6 million). The volume on the Spot Market, in particular, grew significantly by 24 per cent to 827.7 TWh (2016: 665.5 TWh). On the Derivatives Market, which was migrated to the T7 trading platform at the end of 2017, trading volumes increased by 6 per cent to 1,153.9 TWh (2016: 1,090.7 TWh).
The revenues in the Environmentals business field, which essentially comprises markets for emission allowances, rose by 53 per cent to EUR3.8 million (2016: EUR2.5 million). With auctions on behalf of 27 member states EEX is the leading platform for primary market auctions of emission allowances. In 2017, the Secondary Market developed very positively, recording a 71 per cent volume increase to 531.2 million tonnes of CO2 (2016: 309.8 million tonnes of CO2).
In the Global Commodities business field, which essentially comprises the Cleartrade Exchange (CLTX) markets, EEX Group achieved transaction revenue of EUR0.4 million in 2017 (2016: EUR0.5 million) in 2017. In the past year, EEX Group transferred the Open Interest in freight contracts of LCH Ltd. to its clearing house ECC and increased the volume on the freight market by 8 per cent to 473,149 contracts (2016: 437,599 contracts). The transaction revenue from the Agriculturals market rose by 17 per cent to EUR0.4 million in 2017 (2016: EUR0.3 million). On the Dairy Derivatives Markets, EEX again achieved a record volume in 2017.
In the Market Data Services business field, the 2017 sales revenue was EUR5.4 million which is 7 per cent higher than the previous year (2016: EUR5.0 million). The remaining revenue was EUR39.9 million – as against EUR39.0 million in the previous year. This total includes annual fees, fixed fees for technical connections and market coupling as well as clearing for partner exchanges that are not fully consolidated within EEX Group.
Reitz says: “We will continue to follow our growth strategy. The trading volumes on our markets developed positively in the first quarter of 2018 – in particular, on the natural gas and emissions markets. On the Power Derivatives Market, we were able to increase market share in our biggest markets including Germany, France, Spain, Italy and the Netherlands compared with the full year 2017. We expect 2018 to be another record year for EEX Group.”