Success Stories /

Risk Management & Hedging Strategy for a Global Chemical Company

Impact

The program implemented by Mobius Risk Group proved to be highly effective. The global chemical company experienced a significant reduction in the volatility of its commodity price exposures. As a result, their profit margins became more predictable and stable, which in turn enhanced their financial and credit performance and strategic planning capabilities.

The success of this program not only provided immediate financial benefits but also positioned the company better for long-term sustainability in a market characterized by fluctuating commodity prices. The partnership with Mobius Risk Group demonstrated the value of expert intervention in complex commodity markets and set a new standard for risk management in the chemical industry.

Solution: Asset and Acquisition Analysis

Mobius Risk Group, a renowned expert in commodity price risk management, was approached to provide a solution. The team at Mobius worked closely with the chemical company to understand their specific needs and the complexities of their exposure to fluctuating commodity prices.

Through a collaborative effort, Mobius developed a customized commodity price risk management program tailored to the company’s unique situation. This program aimed to make their commodity price exposures and profit margins more predictable, thus enabling better financial planning and decision-making.

The strategy involved a comprehensive analysis of the company’s risk exposure, followed by the implementation of a variety of financial tools and strategies. These strategies were selected for their effectiveness in stabilizing prices and were customized to align with the company’s operational structure and credit and financial goals.

A leading global chemical company was facing significant challenges in managing the volatility of NGL and petrochemical prices. This volatility posed a substantial risk to their profit margins and overall financial stability. The company needed a reliable third-party expert to assess their situation and determine an effective hedging strategy to mitigate these risks.

Challenge