In the financial year 2011, which was successful both in terms of EEX’s strategy and business operations, European Energy Exchange AG (EEX) generated new record results. In spite of an uncertain market environment and a certain reserve on the part of the market participants because of the financial crisis and on account of the turn in energy policy in Germany, EEX succeeded in further expanding its position as the leading European energy exchange. The sales revenue of the Leipzig-based energy exchange increased by 6 percent to EUR 45.6 million (previous year: EUR 43.2 million). Earnings before taxes (EBT) even increased by 8 percent to EUR 17.2 million (2010: EUR 15.9 million).
“We were able to achieve record results in sales revenue and profit again even under difficult conditions. At the same time, we have established a broader position for ourselves and further developed promising business fields. This constitutes an excellent basis for the continuation of our growth strategy“, explains Peter Reitz, Chief Executive Officer of EEX. The growth of EEX Group can also be seen in the development of the number of its employees. Until the end of the year, the number of employees increased by 22 percent to 127 employees (previous year: 104). A dividend at the level of the previous year amounting to in total EUR 7.2 million will be proposed to the annual general meeting by the Management Board and the Supervisory Board for the financial year 2011.
At EUR 32.6 million, the business segment of power once again constituted the mainstay of revenue during the past business year. In total EUR 26.4 million sales revenue were generated on the Power Derivatives Market. The turnover (trading and clearing) from pure exchange trading is higher than in the previous year, while the turnover from OTC clearing has declined slightly. Moreover, the sales revenue from clearing of spot market transactions on EPEX SPOT increased by 11 percent.
The structure of the overall sales revenue of EEX shows that the diversification of the company is increasingly taking shape. “We could further reduce the dependence on the Power Derivatives Market, while sales overall continued to increase. While the Power Derivatives Market still contributed a share of 65 percent to sales in 2010, it accounted for 58 percent in the past financial year“, underlines Iris Weidinger, member of the Executive Board and Chief Financial Officer of EEX.
In the natural gas business segment, EEX increased the volumes on the Spot and Derivatives Market significantly on account of a large number of activities. In the past business year, the sales revenue generated in trading in natural gas rose by 45 per- cent to EUR 1.2 million (2010: EUR 0.9 million). The Derivatives Market volume rose by 11 percent. The trading volume on the Spot Market increased even by 54 percent. The successful launch of 24/7 trading and the expansion of the Spot Market with the Dutch TTF market area constituted one of the reasons for this development.
Furthermore, significant increases were generated in sales in the field of the clearing cooperations of the European Commodity Clearing AG (ECC), which increased by 43 percent to EUR 4.6 million (2010: EUR 3.2 million). ECC is growing continuously and, as dedicated clearing partner for six exchanges, has become the central energy clearing house in Europe.
The information products business segment, which generated sales of EUR 0.8 million (2010: EUR 0.5 million), recorded a growth rate of 71 percent. In this new and commercially interesting business segment which has a high development potential EEX provides exchange market data and the data from the transparency platform for professional use in the form of “Info Products” to companies, associations and to other interested parties, such as universities and colleges.
Only the business segment of emissions trading declined in the financial year 2011 and generated sales of EUR 0.5 million (2010: EUR 1.0 million). “Nonetheless, we see a lot of potential in this segment for the year 2012. We have developed a leading posi- tion in the field of the primary market auctions and once again confirmed our position as a reliable partner for the execution of EUA auctions in Europe”, explains Peter Reitz. In addition to auctions for Germany, EEX also runs the auctions for the Dutch and Lithuanian governments. In April 2011, the contract with the German Federal Ministry for the Environment regarding the execution of the auctions was renewed early for the year 2012. By now, EEX has also won the contract for the German transitional auction platform. Further bids for the execution of the auctions for the third trad- ing period are underway.
In 2012, EEX will again consistently continue to invest in the new business fields. “For this reason, we expect to further develop our staff in Leipzig and at our London of- fice”, says Peter Reitz in summarising the expected development during the current financial year.
The European Energy Exchange AG (EEX) is the leading European energy exchange. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. The clearing house European Commodity Clearing AG (ECC) provides clearing and settlement of all trading transactions.