INTERCONTINENTAL Exchange (ICE) reported a rise in second-quarter profit on Thursday (Aug 1), helped by a strong performance in its exchanges business as trading remained strong.
The conflict in the Middle East has changed the landscape for global commodity and energy markets, significantly raising volatility and bumping up trades as investors assess the impact of shifting supply chains.
Trading volumes at exchanges typically do better in times of market fluctuation, as investors rejig portfolios or when there is a broad-based rally, which encourages riskier trades.
Energy trading volumes surged 31 per cent in the second quarter, with gains across segments including oil, gasoil as well as other crude and refined products. Natural gas average daily volumes jumped 36 per cent.
Total revenue from ICE’s exchange business, the biggest component of its income base, jumped to US$1.25 billion in the reported quarter, up from US$1.09 billion in the year-ago period.
The company reported adjusted earnings of US$876 million, or US$1.52 per share, in the quarter ended Jun 30, compared to US$802 million, or US$1.43 apiece last year. REUTERS
