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Kantox solutions for European gas company

This European company, a leading Liquified Petroleum Gas (LPG) wholesaler, purchases gas internationally and distributes it through its retailer network in two ways: with semi-annual contracts with pre-established total volumes and by filling orders from extra-contractual demands. The company was looking for an automated solution to protect its operating margins from currency risk while hedging both its forecasted and transactional exposure.

FX CHALLENGES

  • The high sensitivity of the business to FX underlined the need to protect operating profit margins from market fluctuations.
  • The extended time lapse between firm commitments and cash settlement required an efficient solution to hedge transaction exposure.
  • The excessive burden that manually-executed FX risk management was putting on the firm’s treasury resources.

 

BENEFITS

  • The company protects its profit margins from currency risk while effectively hedging all cash-flow FX transaction exposure.
  • Quickly hedging the forecasts and firm orders allows the company to maximise the impact of favourable forward points.
  • The automated solution streamlines the entire FX workflow, thereby doing away with ‘key-person risk’ in FX management.
Case Study

Case Study – Théa Pharma

With operations in 70 countries, the company manages FX risk centrally, as each subsidiary invoices customers in local currencies.

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