Feb 6 (Reuters) - Intercontinental Exchange ( ICE )
reported a higher fourth-quarter profit on Thursday, as the New
York Stock Exchange parent benefited from strong trading volumes
in the energy and options segments.
Shares of the company, which also raised its quarterly
dividend by 7%, were up 2.6% in trading before the bell.
The global commodity and energy markets saw significant
volatility due to the conflict in the Middle East. Market
turmoil tends to boost overall trading volumes for exchanges.
The markets also saw strong trading activity in the reported
quarter as the Federal Reserve continued its monetary easing
policy after keeping interest rates sky-high for over a year to
tackle inflation.
The exchange operator said revenue from trading in
energy-related products surged 16% in the fourth quarter to $477
million.
ICE's energy trading volumes rose 15%, with gains across
segments including oil, gasoil as well as other crude and
refined products. Natural gas average daily volumes increased
17%.
Total revenue from the company's exchange business, the
biggest component of its revenue base, was $1.24 billion
compared with $1.14 billion in the year-earlier period.
Financials revenue, which is housed within the company's
exchanges segment and includes interest rates and other
financial futures and options, jumped 30%.
The rate-cuts and hopes of a soft landing for the
economy clubbed with expectations of a potential "pro-business"
administration motivated many startups to go for initial public
offerings, even though post-IPO performances remained sub-par.
An increase in the number of IPOs help exchanges that
charge fees for stock listings.
ICE's listings business posted a 1% rise in quarterly
revenue.
The company reported adjusted earnings of $875 million, or
$1.52 per share, for the three months ended Dec. 31, compared
with $760 million, or $1.33 per share, a year earlier.