Schedule Demo

Tag: Trading Management

  • Optimize Operations and Maximize Margins

    Optimize Operations and Maximize Margins

    Company

    Independent Power Producer operating combustion turbine portfolio across Illinois markets.

    Challenge

    Optimize operational strategies to maximize portfolio margins while maintaining compliance with NOx and CO2 emission limits under the Climate and Equitable Jobs Act (CEJA) across rolling 12-month operational periods.

    SATURN

    • Empowered the commercial operations team with advanced margin optimization capabilities.
    • Delivered sophisticated risk solutions enabling optimized plant operations under market price volatility.
    • Implemented a Daily Morning Report for comprehensive market intelligence and predictive analytics.

    Impact

    • Increased operating margins by 15-20% while maintaining regulatory compliance.
    • Implemented a framework that enables CEJA compliance at minimum cost.
    • Enabled risk management and hedging for sustained competitive advantage.

    SATURN Applications

  • Optimize Hedging for Small IPP

    Optimize Hedging for Small IPP

    Company

    Small IPP managing high-risk assets in volatile MISO zone with dynamic pricing conditions.

    Challenge

    Develop optimal hedging alternatives with effective risk management under volatile market conditions, minimize downside exposure, protect operating margins, and balance risk-return optimization.

    SATURN

    • Simulated potential power and fuel prices and spark spreads using most recent forward curves – within minutes.
    • Developed optimized operations of power plants and forecasted operating margins and potential margin variability.
    • Provided breakdowns, long term trends, sensitivity analysis, and risk metrics that facilitated valuation with confidence.

    Impact

    • Enabled management to make an informed decision with confidence and achieve 15% hedging cost reduction.
    • Established reusable workflow and solution frameworks that enable rapid response to evolving hedging needs.
    • Implemented automated reporting and data visualization enabling real-time collaboration and results sharing.

    SATURN Applications

  • Stochastic Asset Valuation

    Stochastic Asset Valuation

    Company

    Texas Rural Electric Cooperative experiencing unprecedented high demand growth and expansion needs.

    Challenge

    Forecast optimized operations of potential new generation plants and quantify associated economic value across different thermal, renewable, and advanced storage technologies.

    SATURN

    • Simulated potential market prices using most recent forward curves – on demand within minutes.
    • Developed optimized operations of power plants and forecasted operating margins and potential margin variability.
    • Provided breakdowns, long term trends, sensitivity analysis, and risk metrics that facilitated valuation with confidence.

    Impact

    • Enabled management to execute informed decisions with analytical confidence and fast evaluation.
    • Established reusable workflow and solution frameworks that enable rapid response to asset valuation needs.
    • Implemented automated reporting and data visualization enabling real-time collaboration and results sharing.

    SATURN Applications

  • Implement Integrated Enterprise Risk Management

    Implement Integrated Enterprise Risk Management

    Company

    Large integrated energy company operating a diversified generation portfolio across PJM.

    Challenge

    Implement enterprise-wide risk management and seamlessly integrate a large fleet of generation units, hundreds of trades, multiple commodities, and retail loads.

    SATURN

    • Delivered cutting-edge stochastic simulation, rigorous generation modeling, and advanced trades valuation.
    • Integrated generation optimization, trading management, retail load analysis, and risk management.
    • Established integrated risk metrics and enabled enterprise risk management decisions with confidence.

    Impact

    • Replaced 3 legacy models and integrated forecasting across 4 departments into one platform.
    • Enabled unprecedented stochastic simulation with unmatched speed and analytical rigor.
    • Delivered key attribution metrics that facilitate effective hedging and risk management.

    SATURN Applications

  • Improve Portfolio Management Optimization

    Improve Portfolio Management Optimization

    Company

    Large Independent Power Producer (IPP) with generation assets in multiple ISOs.

    Challenge

    Forecast portfolio revenues, costs, margins, and risks while developing optimized hedging strategies for company generation fleets across each ISO and multiple regional markets.

    SATURN

    • Forecasted stochastic prices for several markets and several commodities across 4 ISOs.
    • Simulated optimized generation and forecasted revenues, costs, margins, and risk exposures.
    • Developed alternative efficient frontier hedging strategies and enabled effective risk management.

    Impact

    • Enabled unprecedented efficient frontier hedging that balanced risks and margin optimization.
    • Helped company management make risk management decisions with confidence.
    • Improved margins by over 10% and reduced risk exposure by over 15%.

    SATURN Applications

  • Develop Alternative Hedging Strategies

    Develop Alternative Hedging Strategies

    Company

    Large oil and gas state-owned company with integrated exploration, production, refining, transportation, and petrochemicals operations.

    Challenge

    Develop alternative hedging strategies to avoid extreme adverse outcomes and preserve required revenues and margins subject to company risk policy guidelines and restrictions.

    SATURN

    • Simulated stochastic market prices and estimated company potential revenues, margins, and risk exposures.
    • Identified and analyzed hedging strategies including futures, swaps, calls, puts, and synthetic options.
    • Delivered advanced simulation-based risk metrics to evaluate the impacts of each hedging alternative.

    Impact

    • Enabled the management team to compare hedging alternatives and make an informed decision with confidence.
    • Empowered company to identify minimum cost hedge that offered maximum risk reduction.
    • Enabled company to meet strict short and long-term risk policy requirements and develop repeatable methods.

    SATURN Applications

  • Oil Inventory and Risk Management

    Oil Inventory and Risk Management

    Company

    Industrial liquids management company that procures, treats, processes, and blends petroleum and petrochemical products.

    Challenge

    Develop an inventory and risk management system enabling continuous monitoring of product costs, mark-to-market margin, value-at-risk, and market price trends.

    SATURN

    • Empowered the marketing team to track inventory, costs, mark-to-market margin, and value-at-risk.
    • Streamlined and integrated product costing, inventory management, margin management, and hedging.
    • Automated market analysis, data analysis, and predictive analytics using SATURN Daily Morning Report.

    Impact

    • Streamlined and integrated workflows including contracts, trading, costing, and risk management.
    • Automated market analysis and reporting using SATURN Daily Morning Report.
    • Customized data visualization, markets analysis, and technical indicators for several oil markets.

    SATURN Applications

  • Small IPP Operating in ERCOT & PJM

    Small IPP Operating in ERCOT & PJM

    Company

    Small Independent Power Producer operating 2 combined cycle plants in NYISO.

    Challenge

    Forecast ERCOT and PJM market prices, simulate optimized generation, capture and value power and gas trades, forecast revenues, costs, and margins, and manage portfolio risks and hedging.

    SATURN

    • Automated market analysis, generation simulation, and financial and risk forecasting – all in one integrated framework.
    • Enabled daily, weekly, and monthly reports customized to meet individual needs and business requirements.
    • Empowered management team to access needed reports and information on-command – in minutes.

    Impact

    • Improved pre-trade valuation, post-trade monitoring, generation optimization, price and margins forecasting.
    • Enabled company to consolidate key business management functions on one platform – seamlessly integrated.
    • Saved time and money by avoiding the need to license different systems to manage trading, generation, and risk.

    SATURN Applications

  • Small IPP Operating in NYISO

    Small IPP Operating in NYISO

    Company

    Small Independent Power Producer operating 2 combined cycle plants in NYISO.

    Challenge

    Forecast NYISO market prices, simulate optimized generation, capture and value trades in multiple commodities, forecast revenues, costs, and margins, and manage risks and hedging.

    SATURN

    • Automated market analysis, generation simulation, and financial and risk forecasting – all in one framework.
    • Enabled daily, weekly, and monthly reports customized to meet individual needs and business requirements.
    • Empowered management team to access needed reports and information on-command – in minutes.

    Impact

    • Improved pre-trade valuation, post-trade monitoring, generation optimization, price and margins forecasting.
    • Enabled company to consolidate key business management functions on one platform – seamlessly integrated.
    • Saved time and money by avoiding the need to license different systems to manage trading, generation, and risk.

    SATURN Applications

  • Optimize Credit Requirements

    Optimize Credit Requirements

    Company

    Small IPP operating power plants in ERCOT with limited credit.

    Challenge

    Develop accurate Potential Future Exposure (PFE) and enable trading manager to negotiate lowest possible collateral to allow trading needed to meet hedging needs.

    SATURN

    • Enabled stochastic simulation of market prices, trade values, trade settlement, and exposure analysis.
    • Developed expected, P95, and maximum potential exposures across complete trade timeframe.
    • Empowered effective negotiation with counterparty of adequate credit requirements.

    Impact

    • Facilitated trading under restrictive credit limits.
    • Reduced requested credit limit by 20%.
    • Established credibility with counterparty.

    SATURN Applications