With 2.28m Euro, the Spot Market revenues were 35 percent higher than last year (1.69m Euro). In the same time, the revenues out of Derivatives Market transactions increased to 7.16m Euro (last year: 5.49m Euro) and thus were 30 percent above last year´s level. Other income (Admission, Training and Consulting fees and other ser-vices) also increases significantly by 18 percent to 1.4m Euro (last year: 1.19m Euro).
Earning before interests and taxes (EBIT) at June 30, 2005, was at 1.98m Euro and thus in the black for the first time. In the comparative half year 2004, there was – in spite of a significant improvement – a slightly negative EBIT of minus 64.000 Euro. Ac-cording to Iris Weidinger, Director Finance of EEX, this positive development under-lines the sane operative core business of EEX, but also the effectiveness of the ar-rangements and investments. Part of this is the trading in CO2 Emission Allowances developing with growing volumes and the implementation of physical futures.
EEX CEO Menzel sees the representativeness, i.e. the fact that trading volume is car-ried by a still growing number of participants, as another important reason for the posi-tive development. As Menzel points out, the proportion of market making deals amongst each other has decreased from 80 percent in 2003 to 20 percent .
As a consequence: break even yet by 2005
The very positive result confirms the expectation made by the EEX at the end of last year´s comparative period to reach break even yet by 2005 and not, as primarily fore-casted, in the year 2006.
“With the implementation of the IT strategy, we have reached an unique level of inte-gration in Europe´s landscape of energy exchanges”, stresses Menzel. “Hereby, we set the prerequisites to speedily address new markets.” Viewing the internationalisation, the EEX CEO highlights not only the opportunity for physical settlement in Austria but also the planed physical futures in France and the Netherlands. As Menzel says, there is a solid ground for a trading floor on the European basis that has to be pushed for-ward. In clearing, EEX has according to Menzel established a respected and success-ful model of cooperation with third parties that could be enlarged by further partners and products.
Introduction of continuous trading in CO2 Emission Allowances as well as the physical future with settlement in France
As of tomorrow, August 4, EEX broadens the trading in CO2 Emission Allowances by introducing continuous trading. The up to now auction trading form will still take place as an intraday auction.
Furthermorse, EEX will offer from August 29, 2005, physical futures with settlement in France by delivery of energy to the RTE control area. The trading will start with baseload and peakload year futures and will be enlarged by quarterly futures at the be-ginning of October 2005 and monthly futures at the end of December 2005. Besides the physical settlement in the Austrian APG control area , EEX offers hereby the sec-ond product enlargement beyond the boarders of Germany.
Menzel names the start of OTC clearing for the CO2 market as well as the start of CO2 Derivatives Market in October as further aims for 2005. After there was a solid and volatile Spot Market built in the last months, it would be time now for setting up a De-rivatives Market on this and to further expand the value chain in this product, according to Menzel.
