Integrated fuel and energy business valuation & risk management

Strengthening risk management and asset modelling with Lacima Analytics’ Market Risk and Valuation modules

The Project

A prominent fuel and energy supplier in the Asia-Pacific region partnered with Lacima to enhance its risk management framework and leverage advanced analytics for the accurate valuation and assessment of risk across its energy trading activities. This project extended an existing relationship in which Lacima Analytics was already in use for portfolio-level valuation and market risk management.

The Client

Our client is a leading integrated fuel and energy business operating across the Asia-Pacific, supplying fuels, lubricants, and convenience products to a wide range of customers. With a large retail network and key refining and trading operations, the business serves millions of customers weekly and operates across international markets, including New Zealand and the Philippines, with trading hubs in Singapore and the United States. As a publicly listed company, it has set ambitious sustainability goals, including achieving net zero emissions by 2040, and is expanding its asset portfolio to include retail electricity and renewable energy investments.

The Challenge

Our client required a comprehensive solution to manage valuation and risk exposure across a diverse portfolio that includes both financial energy contracts and physical trading activities. Lacima Analytics had already been adopted as a core risk and valuation platform, and our client sought to expand its use with additional functionality and to embed best-practice standards within its risk governance framework.

To support this evolution, they engaged our consulting services to enhance their overall risk management framework, including quantitative modelling, model calibration, and the integration of analytics with operational reporting and decision-making.

The Solution

Portfolio Valuation and Risk Modelling

Our client utilises Lacima Analytics’ Market Risk modules, including Value-at-Risk (VaR) and Earnings-at-Risk (EaR), together with Valuation modules to assess risk and value across its energy trading portfolio. An additional stress testing module adds further robustness by enabling risk exposure analysis under various market scenarios.

Consulting and Risk Framework Enhancement

Lacima provided strategic consulting support to help develop and refine our client’s risk framework. This included the development and calibration of quantitative models, guidance on data integration (Extract, Transform, Load) processes, and interpretation of analytical outputs.

Lacima also reviewed and optimised the existing configuration of our client’s Lacima Analytics environment to ensure alignment with their evolving risk limits, governance policies, and business priorities.

The overarching goal was to establish a consistent and resilient risk management lifecycle, underpinned by best practices.

The Outcome

With Lacima Analytics, our client has enhanced its risk and valuation capabilities and practices, enabling more accurate oversight of financial contracts, physical trades, and renewable energy assets within their portfolio. The enhanced framework supports greater transparency and alignment with their long-term growth and sustainability goals.

This partnership illustrates Lacima’s ability to deliver both adaptable analytics software solutions and high-value consulting services that support energy companies in navigating market complexity and building a more resilient, data-driven approach to energy trading and risk governance.