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Lacima can provide high level strategic risk assessments for commodity
producers, consumers and trading companies. We are able to advise
management on company wide or business unit strategic planning
as well as providing strategic and valuation advice on specific
contracts or positions. If you need help to develop a hedging
program we can help you deploy a program that is specifically
tailored to your company.
Lacima can help your company develop trading and risk strategies
that fit your risk appetite and financial objectives. Our expertise
in the valuation of both standard and non-standard instruments
across the commodity and financial areas, as well as our understanding
strategies associated with physical assets can yield your company
unique insights.
Lacima Group’s expertise in energy-based valuations and
modelling provide the basis for our involvement in the LNG industry.
As the evolution of LNG pricing over the years has created distinct
pricing regions, companies must optimize a number of interrelated
factors under various price processes to identify maximum (potential)
value. In many respects, LNG is an evolution of the gas storage
value-proposition, requiring skilled modelling of complex supply
chains under realistic simulations of various price processes.
Lacima provides a range of services to the LNG industry: from
basic valuations of long-term Sales and Purchase Agreements, through
to dynamic hedge programs and quantitative support for strategic
planning of capital investments and acquisitions.
Our experience in developing solutions for our clients in order
to measure and manage their market and credit, risk yields us
a unique advantage in being able to advise clients on their risk
management methodologies, their software needs, and their current
analytics and technologies. Our experts are well versed in modeling,
analyzing and communicating the effects of combined risks to energy
companies, aggregating these risks across multiple risk factors
and business units, and to measure their combined effect on performance
measures. We can also assist clients in measuring individual risk
exposures.
Lacima Group provides transparent and independent valuation of
a wide range of physical assets including generation, storage,
and pipelines. For all valuations, Lacima combines extensive and
realistic market modelling of energy prices along with the constraints
of the asset or portfolio of assets. All of the underlying assumptions
and parameterizations are documented and explained to the user.
By generating a full distribution of asset values both the expected
value and the distribution of values analyzed in the investment
decision making. Lacima can also run hedging strategies based
on the intrinsic valuation and others. Our valuation services
support a full range of purchase and sale transactions, financings,
third party independent opinions, and legal and tax assessments.
Lacima are in a unique position to validate internally developed
models for valuation and risk management. We are able to put forward
a team that has unique experience of researching, developing and
implementing a wide range of models. Whether your models are the
most basic Black-Scholes based models or you implement advanced
numerical pricing algorithms such as lattice techniques or high
dimensionality Monte Carlo solutions, our background is unrivalled
in the level of expertise and experience we can apply to validation.
Our validation exercises can cover an analysis of the assumptions
of the underlying assets, testing of the practicality of the resulting
hedging strategies, ensuring the inputs to these models are appropriate,
and testing the validity of the model in terms of price and sensitivity
parameters.
Lacima has been able to help numerous energy companies to identify,
define and model the complex interactions between assets in a
portfolio, and to develop strategies to monetize the value embedded
in the assets. Our experienced team of energy professionals and
expert modelers can combine to provide your organization with
a unique toolset to enable shareholder value growth.
As well as developing weather derivative valuation software based
on historical analysis and stochastic models, Lacima have consulted
on managing revenues as well as energy risk affected by uncontrollable
weather patterns. Our consulting assignments have involved understanding
accurately how the weather affects companies revenue, making recommendations
on what weather limits are appropriate given the hydrological
challenges faced by a hydro generator as well as temperature related
derivatives for controlling volumetric risk. When combined with
price risk management tools, these volume related hedges increase
the potential to provide superior risk management capabilities.
Lacima can help your company define or review the responsibilities
and duties of the front office trading teams, ensuring that senior
management are comfortable with the product knowledge of the traders,
their understanding of the risk committee’s trading limits,
and that strategies for trading, hedging, procurement, and marketing,
are developed in line with the risk policies and procedures.
Lacima Group is able to prepare and review the relevant policies
and procedures for the varying business units within your organization
including governance and controls, deal execution, and risk management.
Our global experience ensures that your policies and procedures
are benchmarked against the industry standard as well as your
competitors.
We can analyse and report on the ability of companies to identify,
measure, and manage risks. We are able to provide an independent
assessment of the risk management practices of the company and
verify that the company has appropriate risk controls, and that
it adheres to these controls and mitigates risk in compliance
with approved risk policies and procedures.
Lacima can provide expert witness testimony by people who are
recognized leaders in their field, have a wealth of practical
knowledge, and who have the top academic qualifications. The expert
testimony covers the areas of financial damages, asset valuations,
risk control and commercial process. Our team are able to transfer
technical knowledge to non-technical legal professionals as well
as help prepare deposition strategies
Lacima Group combines proficiency in financial modelling with
extensive industry experience to provide clients derivative product
development in OTC commodity markets. Key to clients engaged in
marketing and structuring commodity derivatives, is Lacima’s
global expertise in derivative technologies, market dynamics and
underlying commodity operations. By marketing bespoke derivative
products, clients are able to differentiate their product offering
and achieve a greater return on transactions. Lacima’s services
in this area provide clients with immediate access to an innovative
range of risk management solutions to enhance existing strategies
for customer business. In essence, Lacima delivers proven, cost
effective, quantitative expertise.
 Cost
at risk analysis
Outsourced risk
advice
Valuing generation
assets
Best practice comparative
and advisory project, using Lacima software
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Overview
