Annual Report SET Swiss Energy Trading AG

Transcription

1 Annual Report 2012 SET Swiss Energy Trading AG

2 Editorial SET structure and overview SET main trading figures Overall results in 2012 Volume traded: Turnover: EBITDA: 21 TWh 157 mill. 0.9 mill. Foreword by the Chairman of the Board During the past year SET became an independent provider for several services associated with energy trading and hedging. In 2012 the entire range of services was managed by SET without permanent external support. Turnover increased significantly in 2012 compared to The financial results of SET showed a gratifying improvement in the EBITDA and EBIT levels over the last year. Taking advantage of opportunities while nonetheless keeping an eye on risks and customer focus resulted in small but well-deserved profit. We are confident that this trend will continue in 2013 and we are convinced that our business model will be ever more successful in the future. Currently, front desk and back office are both located entirely in Zurich, and the SET crew handles all essential transactions on its own. A risk committee has been established which is securing compliance with trading guidelines. At the end of 2012, the Swiss gas industry decided to buy the shares of VNG. This step was one of several options agreed upon between VNG and Swissgas to bring SET to the level of a fully autonomous operating gas trading company. The partners decided to establish SET as a purely Swiss company so that it could continue to develop without restrictions. I would like to take this opportunity to thank VNG for its advice and support during the start-up of SET. VNG was represented on our board by Dr. Klaus-Dieter Barbknecht and Oliver Hill. For 2013 I am confident that SET will succeed in ensuring a successful position in the gas trading and hedging sectors. I would like to thank my colleagues on the board of directors. Special thanks, as well, to René Bautz, former delegate of the board. He retired from that role at the end of 2012, when Ruedi Rohrbach took over his position as delegate of the board. Also I recognize the performance of Nicolai von Kistowski, head of trading, and his crew on their efforts in 2012, which led us to satisfying results and an optimistic outlook for the current year. Hansruedi Müller Chairman of the Board Swissgas and its shareholders GVM, EGO, Gaznat and EGZ founded SET together with German VNG at the beginning of Since 2009 until the end of September 2011, SET has operated through the VNG trading platform. On October 1 st, 2011, SET has opened its own trading platform and since then all trading is managed solely by SET. End of 2012, Swissgas bought the remaining shares of SET from VNG and is now SET s sole parent company. Purpose Provide market access and state of the art hedging services, i.e. manage portfolio price risks on behalf of clients in order to add value to the industries inside and outside Switzerland. Purchase and sales of gas volumes for the Swiss Gas Industry involved on the European spot markets (presently NCG, TTF and Wallbach). Structure SET is structured traditionally as a trading floor. It is divided into smaller departments Front Office, Middle Office and Back Office. The segregation of duties enables to work efficiently and accurately. SET is also closely cooperating with Swissgas and its shareholders, which formed several advisory organs, such as Advisory Board or Risk Committee. Some of the services such as operations or accounting are outsourced. The overall traded volume and turnover have significantly increased in 2012 in comparison with SET reached in 2011 the volume of approximately 4.5 TWh, whereas in 2012 the notional volume traded over SET equalled to 21 TWh. Concerning the overall turnover, the increase is similar. In 2011, SET reached the overall turnover of 97.4 mill. EUR and in 2012 turnover of 346 mill. EUR. The fact that SET was operating in 2011 with the help of its shareholder s trading floor (VNG) has affected the final results substantially. SET s own trading platform went live on October 1 st, In 2012, SET was independently performing all trading activities. Volume traded in GWh As visible in the charts, the increase in traded volume and turnover throughout the years 2011 and 2012 is enormous. It shows that SET has gained its role on the market and its widely recognized by its partners. Trade volume in mill. EUR MAIN FACTS 50 Headquarters: Zurich Foundation: March 2009 Shareholder: Swissgas AG Share capital: 40 mill JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2 / 3

3 development in 2012 Shareholder structure, Board of Directors and Management VISION AND STRATEGY Shareholders structure Main shareholders of Swissgas The Natural Gas markets have been moving in the past few years slowly from the long-term contracts to the short-term contracts. Whereas 20 years ago long-term contracts were covering almost 100 % of the market, in today s world they represent probably around 50 % and the remaining half is purchased on the spot markets, often linked to a gas priceindices. The situation has changed and nowadays even the smallest players are looking to hedge their supply contract price in order to reduce the market price risks. The market participants are afraid of price spikes and they are looking to reduce/fix their costs in order to protect their revenue. The result is that they are moving from price taking to riskadjusted portfolio management. Activities of SET in 2012 SET has broadened its business plan and is offering wideranging products in order to provide exceptionel services in the market. While fulfilling SET s original purpose of providing the shareholders of Swissgas (the regional suppliers of natural gas for Switzerland) with the access to the spot markets and with state of the art hedging tools, SET has realized that these services can be marketed also outside Switzerland and thus expanded its business into the EU. While concentrating its activities on Switzerland and its stakeholders, SET also won customers and counterparties with registered offices in Germany, UK, France, Austria, Denmark etc. All in all SET has been actively trading in 2012 with approximately 30 counterparties and has expanded its customer base steadily. SET has set up new locations for trading natural gas and since July 2012 trading on TTF and since November 2012 trading on Wallbach has been activated. SET has been working successfully on setting up an oil trading platform. The trading will be concentrated on the ICE (Intercontinental Exchange) and the project shall be finished in the early beginning of 2013 and SET s next focus will be implementation of other energy commodities. In a framework where deregulating the energy markets is an objective to be achieved, short-term markets dramatically changed over the past years. These changes were characterized in the gas sector by a progressive decoupling of oilindexed long-term contract prices and spot market prices. SET Swiss Energy Trading After the acquisition of the shares of VNG, Swissgas is now holding 100 % of the shares of SET. Together with its shareholders and co-founders EGO, Gaznat, GVM and EGZ, this group of companies forms a strong partnership providing SET with knowledge and experience about the Swiss markets. Swissgas was established in The purpose of the company working in partnership with regional companies is to procure natural gas for Switzerland in all its forms, to transport it to the regional companies and to safeguard natural gas related interests in Switzerland and abroad. Swissgas is owned by following shareholders Gaznat SA (26 %), Erdgas Ostschweiz AG (26 %), Gasverbund Mittelland AG (26 %), Erdgas Zentralschweiz AG (6 %) and Verband der Schweizerischen Gasindustrie (16 %). SET does not have any participation in any other company. Germany 10.9 TWh The Board of Directors of SET is constituted by the delegates of the Regional Companies. The president of SET was Dr. Christoph Stutz who left his office in June 2012 and Mr. Hansruedi Müller overtook the office of President of SET. Four Board of Directors meetings were held in the year After the purchase of shares by Swissgas, 2 members of the Board of Directors representing VNG have been replaced. 50.7% France 0.2 TWh 0.9% UK 0.8 TWh 3.7% Switzerland 8.4 TWh 39.1% Others 1.2 TWh 5.6% 4/5 SET s Management consists of Delegierter des VR and Head of Trading. Mr. René Bautz (CEO of Regional Company Gaznat) held the office of Delegierter des VR in Since January 1st, 2013, the company is headed by Ruedi Rohrbach as Delegierter des VR, who at the same time is CEO of Swissgas. Mr. Nicolai von Kistowski was Head of Trading. In this current ever-evolving environment, the Swiss gas companies had to rethink and reshape their supply strategies, and consequently decided to setup a Trading company. Swiss Energy Trading (SET) mission aims at enabling Switzerland to access gas market places more easily, supporting the trading activities of the Swiss gas utilities in an ever more challenging and competitive environment, and helping the gas industry to continue to develop and implement custommade services for the sectors of large consumers and power generation using natural gas. SET s mission is to develop and secure short-term supply through physical products, hedging products and other products such as virtual storages. After the relocation of its headquarters in Zurich, SET became fully operational on October 1st, SET shall turn into a diversified trading entity, fully integrated into the European market by 2013, and whose core business will include a large portfolio of services and products. The services to business partners will be diversified and will especially encompass the following areas: Commodities such as oil, power and emissions Market analysis Portfolio management Buying and selling gas volumes on spot markets Hedging products, structured products Arbitration services between the markets SET is committed to the highest standards of services for its customers and will develop the largest possible synergies within the Swiss gas industry.

4 ANNUAL ACCOUNTS OF DECEMBER 31, 2012 BALANCE SHEET INCOME STATEMENT ASSETS Current assets Liquid assets Accounts receivable (close companies and shareholders) Other accounts receivable Advance payments Market assessment derivative instruments Prepaid expenses Total current assets Fixed assets Activated flotation costs Furnishings, telecommunication, software Non paid-in share capital Total fixed assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable (close companies and shareholders) Other accounts payable Accounts received in advance Provisions Total outside capital Equity registered shares at a nominal value of each Loss carried forward from previous year Annual profit/loss Total equity Sales of gasproducts Purchase of gasproducts Market to market assessment Trading income Fees Various earnings Total revenues Operating expenses Services Insurance/fees Operating costs EBITDA Depreciations EBIT Financial earnings Financial expenses Financial results EBT Taxes Annual profit/loss Total liabilities and equity / 7

5 Swiss Energy Trading SET SET Swiss Energy Trading AG Grütlistrasse 44 P.O. Box 205 CH-8002 Zürich Phone +41 (0) Fax +41 (0)

6