By hedging the relevant energy price exposures, companies can enjoy certainty around the performance of their operations. Whichever type of energy they are powered by, we have the tools and experience to help them hedge against energy price exposure.
We are part of a worldwide shipping group actively engaged in the supply of bunker fuels to the global shipping fleet.
In an industry where up to 60% of all shipping costs are energy-related, we offer bespoke bunker fuels hedges in most major marine fuels, including VLSFO, diesel and – when necessary – the accompanying emissions certificates.
We trade most grades of jet fuel and design hedges that allow for some flexibility in exposure to jet prices while helping provide greater certainty in the financial performance of operations.
Jet fuel prices are the next significant expense, ahead of labor costs, for any airline.
The rapid inventory turnover and exposure to oil prices in that inventory require active price risk management.
We offer clients access to our risk management expertise during all major trading time zones. Although GRM is at the forefront of green energy risk management, the world will continue to run on fossil fuels for some time to come.
Industrial & Transportation
Although GRM is at the forefront of green energy risk management, the world will continue to run on fossil fuels for some time to come.
GRM has significant experience in the trading of oil, refined products, natural gas, and coal. We also trade EUAs, RIN’s and VERs so that the more environmentally conscious client can contribute to making a greener world by participating in those schemes.
Utilities are often constrained in their profitability opportunities by longer-term commitments to supply services.
As well as offering access to markets to lock in prices, GRM can provide longer-term hedging programs due to our experience and the financial stability acquired by being a member of a much larger group of companies.
Creating hedging strategies that help mitigate energy risks that could affect the financial health of your company
Energy Hedging Solutions
Hedging, for the most part, is a technique that is meant to reduce a potential loss – not maximize potential gains. Nevertheless, hedging often comes with clear economic advantages.
Firms that have good risk management programs can use this stability to reduce their cost of funding or lower their prices in markets deemed strategic and essential to the future progress of their companies.
Hedging can be used to improve or maintain competitiveness. Companies don’t exist in isolation; they compete with other domestic companies in their sector and globally.
GRM is active in most major energy markets globally. With the knowledge and expertise gained by serving most major commercial sectors, we can help mitigate energy price risks.
- CRUDE OIL
- JET FUEL
- GASOLINE, NAPTHA & LIGHTENDS
- DIESEL & GASOIL
- FUEL OIL
- BIOFUELS AND BIOMASS
- NATURAL GAS, LPG’S & EMISSIONS CERTIFICATES
Emissions Certificates, LNG, and Natural Gas
The natural gas market comprises over 25% of the total European energy usage, and this share will only grow in the coming years. Because many view natural gases as a transition fuel to eventual genuinely sustainable solutions, the use of natural gas in all its forms will increase significantly. Most participants in this market will require price risk management of their gas price exposures.
Emissions certificates are a part of the solution – and a necessary tool in the hedging arsenal – as users of fossil fuels look at these markets as ways to reduce their carbon footprints. GRM is an active participant in all these markets.
GRM TRADES MANY GLOBAL NATURAL GAS MARKETS AND CAN HELP LOCK IN POSITIVE ARBITRAGE ECONOMICS FOR SHIPPERS OF LNG
Liquefied natural gas is natural gas cooled to about minus 160°C. In its liquid form, LNG is transported around the world to LNG receiving terminals. Its price depends on the price of natural gas in both the terminal market and at the point of liquefaction.
EMISSION CERTIFICATES ARE ALLOWANCES TO EMIT ONE TONNE OF CARBON DIOXIDE EQUIVALENT DURING A SPECIFIC PERIOD.
The certificate is traded on the EU Emissions Trading System where the total amount of CO2 that the system can emit is not only capped, but reduced by 2% every year.
Within this cap, companies can buy and sell emissions certificates. Companies that reduce more than the 2% required can sell their reductions to the market, and companies who need more can buy them.
We are a liquidity provider through our market access and can quote on the spot or forward maturities. In addition, we help clients reach their compliance obligations through the buying and selling of certificates.
Here to assist
We work and act as one team. We create strong solutions that combine our individual strengths. This is one of our company values which are the guidelines for our actions and behaviour.