Value-extracting diagnostic
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Situation
A Polish energy producer and retailer has several power plants and a large customer base with extensive B2B, residential and industrial outreach.
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Complication With the liberalization of the Polish energy market and its plans to expand internationally, the role of generation needed to be redefined within the trading, origination and sales departments.
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Solution We carried out a diagnostic study of the company's generation, dispatch and hedging policies and aligned it with the trading department. We also established a market-based transfer price mechanism with the retail arm of the business.
More details
- How do I identify, measure and mitigate key risk factors impacting my EBIT?
- Is my front-office contributing to my strategic business objectives, and how do I know I am getting optimal return from my trading desks?
- Is my procurement department making optimal feedstock choices to service my operations?
- How do I extract higher value from my real assets?
- How can my risk management department be more effective in monitoring risk for similar or even less cost?
- How can I further develop metrics that effectively measure the risks, pertaining to my portfolio of assets and derivatives without being too simplistic?
- Do my hedging activities create more risk than I am aware of?
- Is the current set-up of my procurement, sales channels, trading and risk management aligned to my business strategy?
- Do I effectively manage commodity price volatility?
- Do I have sufficient in-depth market intelligence that allows for successful negotiation on large structured transactions?
If you are asking questions like these, Integral Solutions can help you unlock the potential of your trading business
- Our diagnostics delivers a unique insight based on robust quantitative analysis to inform strategic and operational decisions, combining a structured framework for problem solving with mathematical and statistical modelling tools and techniques.
- Key stakeholders are involved from the start, driving their buy-in to the decision-making processes that leads to greater commitment in implementing decisions in the following areas:
- Energy deal structuring
- Energy portfolio management
- Energy fundamental market analysis
- Energy trading strategies
Applied to a sample of our energy clients, with some simple, yet efficient changes in the front office activity, our diagnostic demonstrated a substantial increase in financial profit.
Value Proposition
- We have assembled a pool of subject-matter professionals with quantitative, structuring and risk management experience from major energy trading houses.
- We understand your burning issues and offer proven techniques that can contribute to positively impact your P&L .
- We have already developed and implemented solutions that can be tailored to your specific needs and integrated within your current IT system, allowing for fast development life-cycles.
Benefits
- We enable you to benefit from the unique insights we have developed with many of our oil, gas and power clients over the past years.
- We have managed, with some simple, yet efficient changes in our clients’ trading strategy, to demonstrate a substantial increase in their P&L.
- Our offer is designed to add value to your current portfolio and our success-based fee structure is such that there is no overhead cost for you if no value can be added.
Working with a multi-national commodity trading firm in Switzerland, our benchmarking identified an increase in financial profit by a double-digit million dollars
- Step 1: Set up a Non-Disclosure-Agreement (NDA) that applies to both you and Integral Solutions
- Step 2: Work with your trading and risk management departments to define portfolio / assets in scope of our diagnostic
- Step 3: Conduct quantitative analysis of your portfolio / assets data we collect during the examination phase
- Step 4: Discuss the potential P&L increase resulting from our diagnostic
- Step 5: Conduct workshops to explain the new strategy/optimization potential using back-testing data from your portfolio and from market data
- Step 6: Support you in the integration into your existing front office platform
What clients said aboutour projects
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Bron Sharman Senior Oil Trader “Unlike many advisers I’ve worked with, Trading Integral Solutions don’t have to pretend to be interested in their clients: they focus on what really matters and strive to add value in an optimal way.” Bron Sharman, Senior Oil Trader at SOCAR Trading -
Olga Kutuzova IFRS Group Manager "Trading Integral Solutions applied high quality standards when they delivered their project to us. We benefited greatly from our interaction with their highly skilled team of experts!" Olga Kutuzova, IFRS Group Manager at Novatek Gas & Power -
Jaroslaw Wajer Partner "I have cooperated with Trading Integral Solutions several times. They supported us during the design and implementation of trading departments and company strategies for our power utilities clients. I appreciate their trading expertise and profound knowledge of risk management. I would truly recommend cooperation with Trading Integral Solutions." Jaroslaw Wajer, Partner Performance Improvement at Ernst & Young