BFI has developed a hedging strategy that can protect your company against upwards spikes in the price of fuel that will not only increase your bottom line, but also improve planning, cash flow and competitiveness.
Oil is historically a highly volatile commodity. Increases in the price of oil have placed many large consumers of diesel under pressure. The high correlation between the local diesel price and the price of crude oil forms the basis of BFI's hedging strategy.
With our boutique-style client service we can develop a hedging strategy that fits your company’s risk profile, business model and current market conditions. Whether it be for solving for a specific budget or inventory position, our team of experts can develop a strategy that custom-fits your company’s needs at any point in the energy cycle. We specialize in helping companies reduce their operating cost and thus increase their bottom line.
Using our propriatary hedging strategy for the first six months of 2011, we have achieved a saving of 29c/l on diesel.
All our offerings are designed to have a minimal operational impact on our clients. We buy and sell oil on their behalf, leaving them free to do what they do best, whether it is transport, mining or manufacturing.
Unlike many traditional hedging models, we can offer our clients protection against fuel price increases with full downside participation in the case of fuel price reductions. See How it works for more detail on our in-house developed strategy, or Contact us now to get protected.
Benefits of hedging fuel:
- Protection against volatile fuel price increases
- Participation in fuel price reductions
- Improved planning and expense projection
- Improved profitability
- Competitive advantage over non-hedged industry competitors.
Why should you hedge fuel costs with BFI?
- Fuel is historically an uncontrolled expense (we can change that)
- By controlling fuel cost, you can increase profitability
- Fuel hedging is the next evolution in cost management
- You are an operationally focused business and we manage cost controls on your behalf.
As part of BFI's value proposition to our clients, we provide the following services:
- Identification and quantification of fuel price risk
- Development of custom hedging strategy
- Execution and management of hedging strategy in a cost-effective manner
- Continuous strategy evaluation based on market condition.
Our goal is to save our clients money by developing, implementing and managing a hedging strategy that is appropriate for THEM. To do this we draw on a wealth of market experience and first-class research.