EEX bourse set for more growth in 2022 after Q1 power, gas volumes rise (updated)

European Energy Exchange AG

13/04/2022 10:03

* Bourse reports record 2021 volumes, revenue, EBIT
    * Says will surpass the numbers in 2022
    * Benefits from move to exchanges in uncertain times
    * Other drivers are intraday volatility, post-COVID demand 

 (Adds details)
    By Vera Eckert
    FRANKFURT, April 13 (Reuters) - Volumes of EEX's flagship
power and gas futures products rose sharply in the first quarter
of 2022, the European Energy Exchange said on Wednesday, adding
that it expected 2022 volume growth and financial results will
exceed last year's figures.
    "Our goal is to continue the growth of the EEX Group in 2022
and to surpass the successful year 2021," Peter Reitz, chief
executive of the Deutsche Boerse  DB1Gn.DE  subsidiary said in
an interview with Reuters.
    "The performance measures for reaching the goal are trading
volume and financial success," Reitz added.
    As reasons behind the trends, Reitz cited post-COVID-19
demand for energy and operators opting for the exchange's
clearing functions in uncertain geopolitical times. There was
also a need to hedge greater price volatility during the trading
day, resulting from a rising share of unsteady renewable power,
he said.
    As part of climate efforts and, even more so now, to wean
itself off Russian fossil raw materials, Europe is trying to
reach 40% renewables in its electricity mix by 2030.
    Renewable energy reached 54% of Germany's electricity supply
in January and February. The country's benchmark electricity
futures and the pan-European gas futures contract, which
includes Germany, trade on EEX.
    EEX prices provide direction for producers, consumers,
traders and investors.  urn:newsml:reuters.com:*:nL8N2TZ5GH
    Reitz said that uncertain times - with Russia's invasion of
Ukraine raising concerns about European energy security - drove
operators to the exchange as they sought to move away from
uncleared over-the-counter markets to reduce counterparty risks
and save money.
    If customers' overall risk positions were moved to a
clearing house, it could cut their bills for required margin
payments, he said.
    EEX sales revenue in 2021 increased by 11% to an all-time
high of 363 million euros ($393 million) as energy prices
soared.
    Earnings before interest and taxes grew by 36% to a record
137.8 million euros.
    As continental Europe's biggest power futures exchange, and
after successful forays into North America and Asia, the EEX can
draw on scale and synergies between products and time zones.
    Its platforms serve more than 800 participants.
    ($1 = 0.9238 euros)

 (Reporting by Vera Eckert, editing by Riham Alkousaa and
Bradley Perrett)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))