Nymex Profit Up

The commodities exchange reports a good quarter before its IPO.
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The New York Mercantile Exchange, on the eve of its IPO, reported a big surge in third-quarter profit.

The commodities and futures exchange's third-quarter profit soared 81.7%, fueled by sharp increases in trading volume.

Nymex Holdings

, the parent company of the exchange, which specializes in energy and precious metals trading, made $40.7 million in the third quarter, compared with $22.4 million a year earlier.

Net revenue rose 45.4%, to $142.4 million.

If the Nymex were already a public company, it would have earned 47 cents a share, on the basis of the 86 million shares it will have outstanding after its initial public offering.

Third-quarter results included a $6 million charge related to the closure of Nymex's London facility, which housed the exchange's trading floor.

The exchange's daily average contracts rose 41.6%, to 1.32 million in the quarter.

Nymex is set to complete an initial public offering in the next two weeks. The exchange, which values itself around $4.5 billion, anticipates pricing shares between $48 and $52 a share and offering them on the

New York Stock Exchange

under the ticker symbol NMX. It plans to offer 6.48 million shares of common stock.

If shares of Nymex were priced at $52 a share, the exchange would have a price-to-earnings multiple of 39 times over the past 12 months. The Nymex's price-to-earnings ratio falls far short of its Atlanta-based competition, the

Intercontinental Exchange

(ICE) - Get Report

, which has a trailing P/E of 177.3 times, but comes closer to the

Chicago Mercantile Exchange

(CME) - Get Report

at 46.9 times.