Redefining Risk Management

Trading - Risk Management

Electricity

Arcadia Energy Trading has developed a niche position in the Australian national electricity market as a provider of specialized financial risk management products to power generators, electricity retailers and large corporate businesses. We work with our electricity customers to identify their price risk management aims and deliver appropriate, effective and competitive solutions. This includes the provision of:

• Financial risk management solutions for large electricity end users;
• Hedging solutions for mass market electricity portfolios;
• Non vanilla tailored derivative risk management solutions for market participants.

We use our electricity trading expertise to manage resultant exposures into the wholesale electricity market through a combination of trading strategies and proprietary trading positions using the full suite of exchange traded derivatives and over the counter financial contracts.

It is this combination of risk management provider and active trader which enables Arcadia Energy Trading to deliver innovative and competitively priced risk management structures to its diverse customer base.

In 2007/2008, our first full trading year, Arcadia Energy Trading has traded in excess of 13 TWh of electricity in the Australian national electricity market.

Oil

As in its electricity business, Arcadia Energy Trading works with a diverse group of corporations with significant exposure to international oil prices. These businesses include established oil market participants in the Asia Pacific region and Europe and other corporations in the transport, power generation, mining and industrial manufacturing sectors.

We work with companies to identify their exposures to oil and petroleum product price volatility and deliver the most appropriate solutions to manage that exposure within their corporate risk tolerance.

Arcadia Energy Trading is able to deliver financial risk management products right across the oil complex including crude oil, light distillates, middle distillates and fuel oil. In addition, we are able to offer risk management products in US dollars or local currency to suit customer requirements.

Arcadia Energy Trading has major competitive advantages in the Australasian markets as we trade directly with Singapore counterparties rather than through on shore intermediaries and we have access to the broader Arcadia Petroleum UK market intelligence and expertise to deliver optimal pricing and decision making to our customers.

As a member of the Arcadia group of companies, Arcadia Energy Trading is also able to provide assistance with physical petroleum product supply, shipping and logistics.