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Sunday, April 28, 2024

FCStone Products/Services – Physical Contract Review & Negotiation


Physical Contract Review & Negotiation
FCStone has found that each of our clients possess a unique tolerance for price risk. The differences are often the result of the strategic importance of energy costs, the specific industry, or management structure.

Based upon a more thorough understanding of an organization’s overall risk portfolio and procurement objectives, FCStone can evaluate current natural gas and electricity contracts based on regulatory structure, current forward fixed price versus historical index price, and overall portfolio composition and exposure. FCStone can recommend consolidation of contracts and contract schedules where deemed favorable. For deregulated markets, FCStone can review existing supply agreements in place, evaluate potential opportunities associated with a third party supplier, and facilitate the process if beneficial.

FCStone employs a methodical process for selecting, qualifying and managing physical suppliers to minimize the client’s total cost of ownership. This includes a review of supplier contract terms and conditions, an objective review of supplier credit, identification of the characteristics of the supply offering, an evaluation of offers versus budget or bundled supply cost, and an analysis of offers versus market price.