By Nina Chestney
LONDON (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 (ETR:DB1Gn).
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)