Success Stories /

Energy Price Risk Management for a Commodity Trading Company


The energy hedging program implemented by Mobius Risk Group significantly transformed the company’s approach to energy price risk management. By adopting this program, the commodity trading company achieved a considerable reduction in the volatility of their cash flows and profit margins.

This newfound stability in financial performance not only improved the company's risk management capabilities but also enhanced its ability to make strategic decisions with greater confidence. The comprehensive approach taken by Mobius in developing and implementing the program demonstrated the importance of a well-structured and proactive risk management strategy in the commodity trading sector.

The success of the project with Mobius Risk Group highlighted the effectiveness of custom-tailored hedging strategies in managing complex market risks, setting a benchmark for other companies in the industry.

Solution: Asset and Acquisition Analysis

Mobius Risk Group was engaged to provide a solution. Recognized for their expertise in risk management, Mobius began with a thorough analysis of the company's exposure to energy price fluctuations. This involved evaluating the company's current risk management practices and identifying areas for improvement.

The collaborative effort led to an energy hedging program tailored specifically to the commodity trading company's needs. This program was designed to stabilize cash flows and make profit margins more predictable, thereby enhancing the company's financial stability.

The strategy encompassed a combination of analytical tools and hedging techniques, including the use of financial derivatives and contracts to lock in energy prices. Mobius also gave guidance on policies and procedures that would support effective implementation and ongoing hedging program management.

A leading commodity trading company faced challenges in managing the volatility associated with energy prices. This volatility was directly impacting their cash flows and profit margins, creating a need for a structured approach to mitigate these risks. To address this, the company sought expert assistance in developing a comprehensive energy price risk management policy, along with the necessary analysis, policies, procedures, and strategies.