Leipzig, 25 April 2024
EEX Group reports strong financial results for 2023 with a 19% overall growth in total revenues, reaching EUR 575.6 million (2022: EUR 482.4 million), thanks to continued trading volume growth across all asset classes and geographies. Earnings before interest and taxes (EBIT) increased to EUR 306.4 million (+28%).
The strongest drivers included power and natural gas trading, as well as the Group’s North American commodity markets. In particular, the rising number of trading participants active on the EEX Group markets contributed to the positive development, with over 80 trading participants joining the EEX markets last year.
Peter Reitz, CEO of EEX, comments:
“We are delighted to see a continuing upward trend on our core markets, resulting in record volumes across our power and natural gas businesses, which underpin our sound financial results and prove that reliable services for risk management are growing in importance. We are proud to be able to maintain our number one position as global power trading platform and Europe’s leading gas spot market, while continuously growing our network of trading participants. This year, we will continue with our expansion and diversification strategy by entering new geographies and launching new products to meet market needs, while contributing to the energy transition.”
Power: Record trading volumes
As wholesale prices on the EEX power derivatives markets significantly lowered towards pre-crisis levels in 2023, trading volumes rose to previously unseen heights. EEX Group reported a revenue growth across the board, from European power derivatives (EUR 122.8 million, +52%) and spot markets (EUR 86.7 million, +17%), to the US commodity markets (EUR 39.7 million, +23%). Market shares on key European derivatives markets remained in the upper 80 and 90 percentiles, similar to the Japanese power derivatives market share. Here, EEX’s leading position is supported by substantial growth at trading volume levels, which almost tripled over the course of 2023.
Natural gas: Continued trading volumes growth
After a few turbulent years, gas markets settled in 2023, partially due to the increased confidence towards market-based solutions, which performed as designed during volatile years. The security offered through clearing attracted numerous new participants from the OTC segment, and drove continued expansion for EEX Group on this market. This business segment drove a 37% revenue growth on the European gas derivatives markets (EUR 29.2 million) and a 6% increase on the EEX gas spot markets (EUR 73.7 million).
2023 – Driver for further growth
In 2023, EEX Group continued to build on its strategy of expansion and diversification both in terms of geographies as well as products, laying foundations for long-term growth.
In terms of new regions, the acquisition of the majority stake in GET Baltic widened the natural gas market reach. The transaction allows the integration of the Baltic-Finnish gas markets into the well- established pan-European gas offering of EEX, and with that, provides access to this region for a wider trading community.
Furthermore, through the joint venture N5X in Brazil, EEX Group displayed its commitment to sharing expertise in establishing power derivatives markets across the world. Similar to several European, the US and Japanese markets, Brazilian trading participants will now benefit from our decade-long experience in creating secure and successful markets.
Driving the energy transition
EEX Group is committed to supporting the energy transition by creating price signals and ensuring transparency of existing trades in novel sectors. In 2023, EEX Group introduced the HYDRIX index and announced a hydrogen trading platform, with the first customer being Hint.co, the trading entity of H2 Global Foundation, an organisation supporting the hydrogen ramp-up. EEX Group also aims to facilitate the development of carbon markets through a variety of initiatives, such as the operation of the German national Emission Trading system as well as dedicated indices, as part of the EEX Global Carbon Index family, which take into account CO2 prices from all major times zones. EEX Group also supports the evidence-based energy transition through extensive registry services.
Strong start into 2024
In Q1 2024, EEX Group markets continued on their growth path, with several monthly volume records on selected markets, as well as expanding market share. In particular, on the power spot, power derivatives and natural gas derivatives markets volumes increased significantly as against Q1 2023. In addition, EEX saw the highest daily trading volumes on its European power derivatives markets since its inception at 58.6 TWh (6 March 2024) (previous record: 54.8 TWh on 26 April 2016).
Furthermore, EEX Group continues with expanding its product offering across various asset classes. At the end of March, EEX’s extended power product portfolio for the Nordic region was successfully launched, followed by the introduction of USD-denominated TTF Natural Gas Month Futures.
EEX Group builds secure, successful and sustainable commodity markets worldwide – together with its customers. The group offers trading in power, natural gas, environmental products, freight and agriculturals as well as subsequent clearing and registry services, connecting a network of more than 850 trading participants. EEX Group consists of European Energy Exchange (EEX), EPEX SPOT, EEX Asia, GET Baltic, Power Exchange Central Europe (PXE) and Nodal Exchange as well as the registry provider Grexel Systems and software companies KB Tech and Lacima. Clearing is provided by EEX Group’s clearing houses European Commodity Clearing (ECC) and Nodal Clear. EEX Group is part of Deutsche Börse Group.