EEX Group reports record annual result

Submitted 21/04/2021 - 10:24am

EEX Groups sales revenue increased by 5 per cent in 2020 to a record EUR320.1 million (2019: EUR304.2 million). 

This performance was mainly driven by volume increases in the European power derivatives markets, the environmental markets in Europe and North America as well as the the global dry freight market. In addition to considerable growth in its core markets, EEX Group further extended its reach in Asia with the successful launch of Japanese Power Futures.

Peter Reitz, Chief Executive Officer, says: “2020 was the most successful year in the history of EEX Group and a year in which we achieved many major milestones. We are proud to have further strengthened our global position and enhanced our product portfolio by building new markets, together with our customers. Most importantly, we were able to provide certainty to our trading community in a year of exceptional change.”

Earnings before interest and taxes (EBIT) increased by 3 per cent to EUR101.1 million (2019: EUR98.1 million), hitting a new record level and exceeding the threshold of EUR100 million for the first time.

Anja Kiessling, Chief Financial Officer, adds: “Our record financial results for the third year in a row do not only testify to the success of our core markets but also to the effective development of new market areas. We are particularly happy to see considerable growth in our dry freight business and our environmental products – confirming once more, our position as a global commodity exchange with a broad and diverse range of products.”

In 2020, power trading remained the largest revenue contributor with the global volume increasing by 10 per cent to 7,077 TWh, confirming EEX Group’s position as the number one exchange in power trading worldwide. In Europe, a further milestone was achieved with volumes exceeding 4,000 TWh in a single year for the first time (4,736 TWh, +19 per cent). Sales revenue generated in European Power Derivatives grew by 17 per cent to EUR108.9 million (2019: EUR92.9), while the revenue on the power spot markets remained stable with EUR72.7 million (2019: EUR72.7 million). Sales revenue in the US commodity markets amounted to EUR19.1 million (2019: EUR20.4 million). Despite lower total volumes in the US Power market in 2020, Nodal Exchange was able to increase its market share to 37 per cent and to gain more than 50 per cent of Open Interest in US power futures trading for the first time.

The sales revenue generated in the Natural Gas segment totalled EUR54.5 million which is almost on the same level as 2019 (EUR55.1 million). In 2020, EEX Group reconfirmed its position as Europe’s most liquid gas spot exchange, in a year where the total market decreased. In spot trading, EEX achieved record market shares in Austria (78 per cent), Germany (64 per cent), France (68 per cent) and the Netherlands (60 per cent). In particular, the Czech gas market developed successfully in 2020, increasing by 28 per cent on the spot and by 53 per cent on the futures market. In the United States, Nodal Exchange successfully established its presence in the US natural gas market with a total of 34 TWh traded. Overall, the global natural gas markets of EEX Group recorded a volume of 2,412 TWh (2019: 2,546 TWh).

The environmental markets of EEX Group showed volume increases both in the European and North American markets. The total volume in the European emissions market increased by 16 per cent, resulting in a revenue growth of 10 per cent to EUR4.5 million (2019: EUR4.1 million). The execution of the 2,000th primary market auction in November marked a highlight for EEX in its function as the auction platform for the EU ETS. EEX was further re-appointed as the common EU auction platform for 30 European countries and successfully expanded global partnerships to further develop carbon trading schemes worldwide: following a successful tender with its partner NZX, both exchanges launched emissions auctions for the New Zealand government under the NZ ETS in March 2021. Trading volume in the US environmental markets grew by 15 per cent.

Revenues from Registry services grew by 16 per cent to EUR7.5 (2019: EUR6.5) with a record year for the Guarantees of Origin market: more than 1,590 TWh of GOs were moved in the registries of EEX Group last year, representing half of the total volume circulating in Europe.

2020 marked EEX Group’s most successful year in Dry Freight to date, achieving a new annual volume record of 789,921 lots which is more than ten times the volume of 2019 (74,776 lots). In addition, the Group achieved a long held ambition by gaining the majority share of Open Interest in the global dry freight market. These positive developments resulted in a 546 per cent increase in Global Commodities sales revenues which rose to EUR3.8 million (2019: EUR0.6 million).

Reitz says: “It has been our goal to strengthen our global position and it will be our goal for the current year. We are happy to be on that journey together with our customers and partners and to continue doing what made 2020 so successful – building secure, transparent and sustainable markets together, across all time zones.”
 

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