EEX Group sales revenue rose by 23 per cent to EUR234.2 million in 2016, as the group strengthened its core markets, increased its geographic reach and expanded into new business fields.
“As a result of our group-wide strategy, we were able to significantly increase our trading volumes in all markets and achieve new records in sales revenue and earnings before tax (EBT),” says Peter Reitz (pictured), chief executive officer of EEX.
Iris Weidinger, chief financial officer of EEX, adds: “We achieved this result through organic growth in our existing markets. The power and gas markets, in particular, contributed to this record level with their significant growth rates.”
In the past year, earnings before tax were EUR87.6 million which is 76 per cent higher than in the previous year (2015: EUR49.7 million, after adjustment for special effects).
In 2016, the transaction revenue on the Power Derivatives Market rose by 45 per cent to EUR87.4 million (2015: EUR60.4 million). Compared with the previous year, the trading volume in this market rose to 3,934 TWh (2015: 2.561 TWh). EEX increased its market share from 31 per cent to 37 per cent in Germany, from 24 per cent to 33 per cent in France and from 49 per cent to 63 per cent in Italy.
On the EPEX SPOT Power Spot Market, transaction revenue was EUR67.6 million which is an increase of 6 per cent compared to 2015’s record performance (2015: EUR63.4 million).
In the natural gas segment, transaction revenue rose by 53 per cent to EUR33.6 million in 2016 (2015: EUR22.1 million). A volume increase of 86 per cent to 1,098 TWh on the Derivatives Market contributed to this result. On the Spot Market, trading volumes rose by 43 per cent to 688 TWh. The integration of the Danish Gaspoint Nordic gas products and the Austrian products for the Central European Gas Hub (CEGH) significantly increased the importance of PEGAS, the central gas trading platform of EEX Group.
The Environmental segment, which comprises the emission allowance markets, grew by 56 per cent to EUR2.5 million (2015: EUR1.6 million). This was supported, in particular, by growth on the secondary market for emission allowances. EEX was able to increase its trading volumes by 192 per cent to 310 million tonnes of CO2 in 2016 (2015: 106 million tonnes CO2).
In the Global Commodities segment, which includes the markets of Cleartrade Exchange (CLTX), EEX Group recorded transaction revenue of EUR1.1 million in 2016. With significantly increased volumes in the CLTX markets for iron ore and fuel oil and initial trading transactions in the EEX freight contracts, EEX Group was able to achieve its first successes in this business segment. In 2016, the transaction revenue on the Agriculturals markets rose by 50 per cent to EUR0.3 million (2015: EUR0.2 million). Furthermore, EEX achieved record volumes on the Dairy Derivatives Markets.
In 2016, the sales revenue in the Info Products segment was EUR5.0 million which is 34 per cent higher than in the previous year (2015: EUR3.7 million). The reporting services with which EEX supports its customers in fulfilling regulatory reporting requirements, in particular, have gained in importance. Additional revenue amounted to EUR36.5 million – compared with EUR37.8 million in the previous year. This revenue includes annual fees, fixed fees for technical connections and market coupling as well as clearing for partner exchanges which are not fully consolidated within EEX Group.
Reitz says: “2017 will again be an interesting year for EEX Group. In the summer, we will migrate the Power Exchange Central Europe (PXE) power products to a common platform with our other power derivatives products. We have also set ourselves targets beyond Europe: Subject to the required regulatory approvals, we will acquire the US-American Nodal Exchange and, as a result, we will directly expand our offering with contracts for Northern America which is the biggest power derivatives market in the world. In summary, we will continue to pursue our aim of establishing ourselves as a global multi-commodity platform and, with Deutsche Börse, we have a strong partner to achieve this aim.”