NEWS
Fluxys posts profit fall, margins trimmed
Brussels, Sept 1 (LNG journal)
- Fluxys, the Belgian gas transport and storage company and liquefied natural gas trading hub owner, posted a 14 percent fall in first-half net income on Thursday as regulators reduced gas profit margins.
Fluxys also said in its earnings statement that work to boost the capacity of its LNG receiving terminal in the Belgian port of Zeebrugge was on schedule and within budget.
“The users of the LNG terminal in Zeebrugge have booked long-term capacity of around 9 billion cubic metres per year, starting in 2007-2008. Accordingly, the terminal's capacity is being doubled,” said Fluxys.
Fluxys said net income for the six months to June 30 fell to €36.58 million ($45.25M) compared to €42.33M in the same period in 2004. The Belgian gas regulator's decision on the rate of return (based on Belgian government bond quotes) constituting the fair profit margin for gas had an adverse impact on revenue of some €6 million.
However, Fluxys said that liquidity on the gas trading hub at Zeebrugge was developing “positively”. Huberator, the Fluxys subsidiary that operates the hub, set up the venture in February this year in partnership with APX Group, the electronic exchanges operator.
Six traders are currently active on the APX platform and it is expected that by the end of 2005 the Amsterdam-based securities exchange, Endex, will offer traders on the Zeebrugge Hub access to natural gas futures and clearing services for long-term over-the-counter transactions. Fluxys has a 5 percent stake in Endex.
The hub's customers include ExxonMobil Gas Marketing Europe and Dutch gas trader Gasunie Trade & Supply. The net volumes traded on the Zeebrugge Hub rose
by 3 percent in the first half of 2005 compared to the same period in 2004, Fluxys said.
The churn factor, the number of times that natural gas is re-sold on the hub, rose by 30 percent.
On the revenue front, Fluxys said group revenues rose by €20.6M to €206M during the first six months compared to revenue of €185.4M in the same period a year ago.
