Germany's EEX reports 19% revenue growth last year (updated)

European Energy Exchange AG

25/04/2024 11:17

(Adds company comment and detail in paragraphs 6, 8, 11 and 12;
adds Deutsche Boerse announcement in last 3 paragraphs)
    By Nina Chestney
       LONDON, April 25 (Reuters) - The European Energy
Exchange's (EEX) revenue rose 19% last year, mainly driven by
power and natural gas trading volumes as well as the group's
north American commodity markets, it said on Thursday.
    EEX is based in 21 locations worldwide and offers trading in
power, gas, environmental products, freight and agriculture, as
well as clearing services. 
    Revenue grew to 575.6 million euros ($615 million) from
482.4 million euros in 2022, said EEX, which is part of Deutsche
Boerse  DB1Gn.DE .
    Annual earnings before interest and taxes (EBIT) increased
by 28% to 306.4 million euros.
    In the first quarter of this year, EEX experienced monthly
volume records in some markets, particularly spot power and
derivatives. Natural gas derivatives volumes also increased
compared to the same quarter last year.
    "We are looking optimistically to hopefully another record
year in 2024," said EEX Chief Executive Peter Reitz.
    Even though wholesale power prices have fallen since the
energy crisis in 2022, trading volumes have risen.
    The stabilisation and decrease in power and gas prices has
led to lower margin requirements which has freed up capital by
participants for new trading activities, Reitz told journalists.
    Annual revenue from European power derivatives rose by more
than 50% to 122.8 million euros while spot market revenue was up
 17% at 86.7 million euros.
    Natural gas derivatives revenue in Europe increased 37% to
29.2 million euros.
    EEX said it has observed a continued shift from
over-the-counter trading to cleared exchange markets due to the
security and delivery of payments.
    Another factor behind trading volume growth last year was
the entry of new trading participants. EEX admitted more than 80
new trading participants last year across all asset classes, it
said.
    Separately, EEX's parent company Deutsche Boerse announced
on Thursday a partnership with U.S.-based Nodal Exchange, which
is already part of EEX Group. 
    The partnership will provide Deutsche Boerse access to
market data from Nodal Exchange so its clients will benefit from
U.S. power and environmental market data. The partnership will
go live on May 1.
     
($1 = 0.9359 euros)

 (Reporting by Nina Chestney; Editing by Kirsten Donovan and
David Evans)
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