Several people analyzing data and graphs on computer screens

Risk management with financial hedging

We know how important it is to know your margin beforehand. That is why we set prices through financial hedging.

Do you know what your margin will be?

We are aware of the issues with buying and selling a product when you don't know the price at the time the physical transaction is made. The price depends on the volatility of international markets. 

To avoid this risk, Repsol offers the opportunity to set the price beforehand using financial hedging.

Handshake

What are the benefits of working with us?

  • We set a price that is currently variable and uncertain.
  • We delay or bring forward the time period that your purchase or sale price depends on. 
  • We set a margin for a specific time period by setting the purchase and sale price at the same time.
Woman and man looking at computer screen

How do we do it?

  • Our team of traders continuously tracks the financial and energymarkets to hedge for the Repsol Group and its stakeholders, including you.
  • We have extensive knowledge and powerful tools for hedging. We offer you financial instruments such as futures, swaps, and options.

What does your hedge consist of?

Here is an example of how we set a purchase or sale price to secure a margin.

Do you know how much you'll pay for fuel this month?

You have bought fuel (physical) today, but the price won’t be formed until next month, with the average quoations of HSFO NWE for that specific month

This leaves you with the uncertainty of not knowing at what price you’re finally buying the fuel.

TODAY

END OF MONTH

Buying a swap

We buy a swap to fix our price at
XXX usd/MT

TODAY

END OF MONTH

Settlement month average

Fixed price swap

The average for the month closes at
XXX usd/MT

Calculating its value

Calculate the swap value.

Settlement month average

We will receive the difference

Fixed price swap

We have hedged the market price increase and, therefore we have paid less money.

Save on your purchase

Calculator

With a simple subtraction: mission accomplished.

Market value

RestaSwap value

Resultado

Savings

You will have covered the increase in market value and also locked in the price.