Energy Price Risk Management

Protect your business from price volatility and make your energy spend more predictable.

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Energy Price Risk Management protects your bottom line in volatile energy markets.

Today’s energy markets move fast. If energy spend makes up a large percentage of your overall budget, volatile markets and significant price fluctuations can wreak havoc on your bottom line and make planning for the future a serious challenge. Developing an optimal energy price strategy is crucial, but also complex and time-consuming.

World Kinect’s energy experts are here to help with our energy price risk management solutions.

Our dynamic, collaborative approach includes plenty of listening on our part. After we understand your goals and priorities, we customize a plan that works for your specific budgetary needs and risk tolerance. Every customer solution is different, but we aim to identify prime opportunities to optimise your hedging strategy, streamline your operations, protect your energy budget from unexpected price spikes, and take advantage of volatility. Along the way, you’ll have ongoing access to expert advice and thought leadership to help ensure your strategy continues to meet your needs.

Read more about our energy price risk management solutions, or contact us today to discuss your business’s requirements.

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Why Energy Price Risk Management?

Energy price risk management can ease the pressure on your energy budget and put you in better control of your total spend. Some of the financial and operational benefits of this approach include:

Gain predictability

Enable a managed, controlled approach to energy spending with hedging strategies that help you better spread risk and gain budget certainty.

See the big picture

Get a holistic view of your energy budget with expert, outsourced guidance and insights about global markets and trends.

Buy smarter

Leverage continuous and informed insights and analysis based on emerging trends in the wholesale market.

Move faster

Remove the complexities and burdens of managing energy price risks in-house.

Why World Kinect for Energy Price Risk Management?

When working with World Kinect, you benefit from:

Proven market experience. We have decades of expertise in implementing a managed risk approach with verified results.
Industry expertise. Our teams specialize in all major physical and financial energy markets, including hedging for natural gas, electricity, major carbon markets and liquid fuels.
Customer focus. We work collaboratively to give you flexible options that meet your business and budget objectives.
Supplier choice. We work with all major suppliers transparently and ethically.
Continuous improvement. We always seek a competitive edge to ensure our strategies are robust in every market condition.

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Could Energy Price Risk Management Help Your Organization?

It may be time to look into energy price risk management solutions if you:

Lose sleep at night due to rising energy costs
Miss price opportunities and wonder when the right time is to fix your energy supply, or part of your forecast requirement
Signed a fixed-price contract only to find that the price decreased a month later
Don’t see the value of your existing risk management contracts with your suppliers
Need to set an energy budget based on what the market will do for the next three years
Lack trust in your prices and need more transparency
Lack the adequate time to analyze the energy market

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Optimize your energy price strategy with a collaborative risk management approach.

Relying on global expertise when sourcing energy helps you meet energy complexity head-on. Sudden rises in energy prices impact business performance. With energy price risk management services, you get a personalized plan you can use to manage price volatility and keep your business moving.

Energy Price Risk Management Offerings from World Kinect

We customize our solutions based on your risk tolerance and budget needs, typically using one or more of these instruments:

Forward hedging: Our portfolio managers will transact at opportune times to limit price spikes and optimize market trends.
Financial options: In some markets, we can purchase caps and collars to protect organizations against paying more than a set price.
Futures hedging: Less mature markets won’t accommodate an effective hedging strategy. In these markets, we implement energy swaps that allow for hedging on a derivative financial market.

Hedging contracts typically run for one to three years. We can structure our fees based on performance, a fixed price per transaction or a fixed price per time period.

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