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Get more margin and less risk

Keeping fuel costs within a predictable range protects you from unexpected changes in the price of fuel. Changes that could otherwise seriously impact your budget and profit margin.

Scrubber hedging

What is a scrubber hedge?

If you already have invested in a scrubber, or you are certain this is the way you want to go, Global Risk Management offers you the opportunity to fix the current spread between 3,5% fuel oil and gasoil. This means, that with a hedge you do not have to worry about the spread decreasing and ensure your competitiveness against peer groups who have not installed scrubbers. 

 

Scrubber hedging from a consumer's point of view

The possible risks a scrubber might entail:

  • Installing a scrubber is a huge investment. Since no one can exactly predict what is going to happen with the 3,5% fuel oil prices, it can potentially take years to pay back the scrubber.
  • The more scrubbers get installed, the more likely it is for the price drop of 3,5% fuel oil to be smaller, since there will be no abundance of 3,5% fuel oil after all. 
  • Refineries are expected to produce lighter-end fuels, being cheaper than the current alternative to 3,5% fuel oil and thus decreasing the price spread even further. 

Considering all of this, hedging for the current spread between 3,5% fuel oil and gasoil could protect you from the potential risks that you might face with the installation of a scrubber. 

 

 

 

 Go back to IMO 2020 regulation 

Dennis Lysemose Andersen

Sales Manager/Senior Oil Risk Manager

+4588380007

Meet your very own Oil Risk Manager
– and learn more about scrubber hedging

An oil risk manager can help you manage your fuel risks. Get in touch today to learn how a scrubber hedge can protect you. 

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