The European Energy Exchange (EEX) has reported a positive result for the 2012 financial year, during which volume increases were generated on almost all trading markets and very good results were achieved. These achievements played a major part in EEX maintaining its position in spite of a difficult market environment, shaped by structural changes on the power market and lasting uncertainty. In 2012, the sales revenue generated by the Leipzig energy exchange increased by 5 percent to EUR 47.9 million (previous year: EUR 45.6 million). The annual net profit also showed positive development against the previous year and increased by 5 percent to EUR 11.8 million (previous year: EUR 11.3 million). At the end of the year 2012, EEX Group employed 145 members of staff – corresponding to an increase of 14 percent against the previous year (127).
“We were again able to increase our sales against the previous year even under difficult conditions. The fact that the diversification of our mainstays of revenue is taking effect is particularly positive”, explained Iris Weidinger, Chief Financial Officer of EEX Group, at the presentation of the results. As a result, the share of the other business divisions in terms of sales revenue, apart from the Power Derivatives Market, increased from 42 percent in 2011 to 53 percent in 2012. It was, in particular, the growth on the natural gas and CO2 markets and in the information products division which contributed to this.
As in the past, the Power Derivatives Market contributes the biggest share to the results of EEX Group. However, the trend towards short-term trading continued in 2012. This means that the trading participants were increasingly active in short-term maturities but concluded less long-term trading transactions, this trend was reflected in sales revenue of EUR 22.5 million compared to EUR 26.4 million in the previous year. The revenue from clearing of Power Spot Market trades on EPEX SPOT increased to EUR 6.9 million against the previous year (EUR 6.2 million).
In 2012, EEX generated a significant increase in sales in the Natural Gas business segment in which sales increased by roughly 50 percent to EUR 1.9 million (previous year: EUR 1.2 million). At 55 percent and 44 percent respectively, these increases concerned both the Spot and the Derivatives Market. This positive development was based on the liquid 24/7 Spot Market for the GASPOOL, NCG and TTF market areas, which is becoming increasingly accepted by the market. On an annual average, the short-term trades concluded outside the core opening hours of the exchange (at night and on weekends) accounted for a share of 30 percent.
In 2012, EEX significantly increased the sales generated in trading in Emission Allowances to EUR 0.9 million, representing a 76 percent increase (previous year: EUR 0.5 million). This development was driven by the expansion of the primary market auctions in the framework of which, a total of 165,206,500 certificates were sold by EEX at 166 auctions in 2012. The auctions which EEX carried out on behalf of 25 member states and further public-sector clients, such as the European Investment Bank, also had a positive effect on secondary trading in emission allowances on the exchange. In the course of 2012, EEX admitted 28 new trading participants to the CO2 market and increased the liquidity of the secondary markets with the support of market makers and through incentive programmes.
The sales revenue from the clearing co-operations of European Commodity Clearing (ECC) increased to EUR 5.0 million compared to EUR 4.6 million in the previous year. ECC, which operates as a clearing house for EEX and six other exchanges, further expanded its network of partners. For example, in the future, ECC will also clear power for the Czech and the Slovak market for a new partner exchange – Power Exchange Central Europe (PXE). With Citigroup, Österreichische Kontrollbank and Banco Santander, ECC has admitted three further clearing banks so that, in total, 18 Clearing Members were admitted to ECC at the end of the year. Furthermore, ECC successfully established further business relations and will contribute its expertise to the development of new markets in Turkey and Brazil.
The business fields which again generated strong growth included the information products segment which generated a revenue of EUR 1.5 million, which corresponds to an increase of 80 percent compared with the previous year (EUR 0.8 million). This
included the operation of the successful “Transparency in Energy Markets” transparency platform and marketing of trading and fundamental data.
The results of the past business year show that, thanks to its diversification strategy, EEX was able to develop new business fields with strong and consistently positive growth rates. For this reason, the Management Board and the Supervisory Board will recommend a dividend payment of EUR 7.2 million for the financial year 2012 at the annual general meeting which corresponds to the amount of the dividend paid for the previous year.
As Peter Reitz, Chief Executive Officer of EEX Group explained, EEX will further invest in the growth of the strategically important asset classes, promote the expansion of the new business fields and continue to rely on co-operations in the new financial year 2013. The gas co-operation between EEX and the French Powernext under the name “PEGAS” forms an important project for the current year. On account of the broad value chain within EEX Group which is characterised by trading markets with high liquidity and cost-effective clearing solutions, Peter Reitz is convinced that EEX has established a sound position for itself for the future. “The 2012 figures and positive development in the first four months of 2013 shows that our measures are on track and that we are well prepared in the competitive environment – not least because of further
strategic co-operations.”
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group.