During the first half of the year 2008, European Energy Exchange AG (EEX) has continued to grow successfully. As against the same period during the previous year the number of trading participants, the trading volumes and sales revenue have increased once again. Compared with the same period during the previous year the sales revenue increased by 12 percent to EUR 22.47 million during the period under review as against EUR 20.08 million as of 30 June 2007. With an in-crease of 30 percent or EUR 1.1 million up to EUR 5 million the Power Spot Market has made a decisive contribution to this development.
At EUR 9.6 million the operative result (EBITDA) was slightly higher than the operative result for last year (2007: EUR 9.1 million) in spite of high expenditure in the framework of a reinforced course towards internationalisation and of a reinforced expansion of sustainable customer management and distribution structures. Compared with the first half of the year 2007, the result before taxes (EBT) displayed a slight decline to EUR 7.3 million from EUR 7.7 million. In addition to this, extraordinary income to the amount of EUR 6.7 million was generated from the sale of own shares to Eurex Zurich AG.
Power: Strong Spot Market, recovery on the Derivatives Market
During the first half of the year 2008 the trading volume on the Power Spot Market in-creased by 30% to 78 TWh up from 60 TWh as of the cut-off date of 30 June 2007. A total of 615 TWh was traded on the EEX Derivatives Market for Power during the first half of this year as against 608 TWh during the same period last year. The volume of exchange trading on the Derivatives Market has increased considerably: With a total of 161 TWh during the first half of 2008 it was almost 63 percent higher than the 99 TWh from the same period during the previous year. As a result of this, the share in the en-tire Derivatives Market volume (incl. OTC clearing) has increased to 26 percent. During the same period in 2007 this share amounted to 16 percent. “The volumes on the De-rivatives Market illustrate that the measures we have initiated to revive derivatives trading on the exchange are taking effect“, Dr. Hans-Bernd Menzel, CEO of European Energy Exchange AG, explains. Furthermore, he also emphasizes: “The continuous expansion of our Customer Relations Department, the adjustments in the fee structure, strengthening of market making as well as the connection to the Trayport GlobalVision Trading Gateway System have constituted the focus of our activities.“
In OTC clearing for power EEX has registered a decline in volume by 11 percent. During the first six months of 2008, 454 TWh were cleared via European Commodity Clearing AG (ECC). During the same period last year, this volume totalled 509 TWh. In the course of the year the open interest on the Derivatives Market for Power – the total of all open positions – has increased further. As of 30 June 2008 the open interest amounted to 353 TWh corresponding to a market value of EUR 31.4 billion (As of 30 June 2007: 316 TWh, market value EUR 16.0 billion).
Positive development in CO2 trading
The market segment of emissions trading also displayed a positive development – a fact which is confirmed in particular by the figures on the Derivatives Market: During the first half of the year 2008 a total of 27,086,000 tonnes of CO2 which is almost five times the volume of the same period during the preceding year with a total of 6,045,000 tonnes, was traded on this market. On 26 March 2008, EEX launched futures on CERs (Certified Emission Reductions), emissions reduction credits created worldwide under the Kyoto Protocol, in cooperation with Eurex, in addition to the EUA futures. Until 30 June 2008 the volume traded in this new product amounted to 248,000 CER.
The volume traded on the Spot Market for Emission Allowances amounted to 654,000 tonnes of CO2 compared to 3,690,262 tonnes of CO2 during the same period in 2007. This decrease is due to the price decline and the end of the first trading period. 20 March 2008 was the last day of trading on the Spot Market of EEX. On account of the delayed issue of the German emission allowances by the German Emissions Trad-ing Authority (DEHSt) a starting date for EEX spot trading for the second trading period has not yet been established.
Positive interim result after one year of trading in natural gas
One year after the launch of exchange trading in natural gas on EEX the results can be summarised as positive. During the first half of the year 2008 the trading volume in the two market areas of E.ON GT and BEB, which together account for approx. 60 percent of the German H-gas market volume, amounted to 6,477,301 MWh. The Spot Market for natural gas accounted for 389,690 MWh of this total, while 6,087,611 MWh were traded on the Derivatives Market. “We are pleased with the development of this young market – in particular the high increase in the volume on the Derivatives Market“, Hans-Bernd Menzel comments.
Continuous increase in the number of trading participants
The number of trading participants licensed on EEX underlines the success of the market platform: In the course of one year the number of trading participants has increased by 21 percent. As of 30 June 2008, a total of 208 participants from 20 countries was licensed on EEX. During the same period last year the number of trading participants totalled 172 participants from 19 countries. In March, EEX welcomed its 200th trading participant. The number of trading participants in natural gas trading rose to 50 com-pared with a total of 26 trading participants upon the launch of trading in July 2007.
Change in ownership structure
During the reporting period the ownership structure of EEX AG has changed. Nord Pool ASA withdrew as a shareholder and offered its shares for sale to the existing shareholders. Eurex Zurich AG, which has increased its ownership share to 34.73 per-cent by means of the purchase of own shares of EEX AG which still existed and on account of the procedure for the sale of shares to the existing shareholders, remains the biggest shareholder in EEX. Further shareholders have also increased their shareholding in EEX. In its capacity as the parent of Sachsen Bank, the State Bank of Baden-Württemberg (LBBW) now holds 22.64 percent, while Leipziger Versorgungs- und Verkehrsgesellschaft (LVV) holds 7.38 percent. A total of 52 shareholders holds inter-ests in the European Energy Exchange.
Cooperation with Powernext
Over the coming months, the implementation of the cooperation with the French Powernext will continue to be the primary focus. By the end of September 2008, a joint EEX and Powernext company will be established for the Spot Market for Power. This new Spot Market company will be based in Paris. After that, the trading activities of both parties can be transferred step-by-step. Derivatives trading for power will be combined in the Leipzig-based derivatives trading company in the coming year. As a result of this, the change in the alignment of the EEX group towards a strategic holding which began with the spin-off of ECC, will be continued consistently by the new subsidiaries for power.
