Singita Energy Management provides energy hedging and risk management strategies structured around exchange-traded and over-the-counter (‘OTC’) instruments. Singtia uses a continuous process to implement and manage its strategies:
- Create extensive questionnaire to establish client goals related to the hedging strategy including: cash flow stability, competitive advantage, and volatility avoidance.
- Research the fundamentals of the domestic supply and demand structure relevant to the task
- Evaluate historical price evolution, forward curves, and tail risk
- Apply fundamental, quantitative, and technical models for pricing structure and discipline
- Identify specific risk parameters for the existing business model
- Utilize a discretionary global macro analysis process concentrating on thematic and tactical strategies developed in a collaborative and research intensive method
Exchange-Traded Structures
Singita exchange-traded structures have the following characteristics:
- Provides liquidity, anonymity, and lost cost
- Utilizes futures, options, and their respective spreads, straddles, strangles, and more
- Counter-Party risk is guaranteed
- Entry, exit, and scalability are flexible and unrestricted
- Innate leverage exists in the cost structure of exchange-traded instruments, providing cost efficiency relative to the value of the underlying commodity
Over-The-Counter Structures
Singita over-the-counter structures have the following characteristics:
- Provides complete customization for asset grade, basis, credit terms, settlement structure, and premium payment schedule
- Allows diversity with a wide variety among OTC, swaps, and hybrid strategies
- Enables choice of counter-party to accommodate financial and physical requirements