Energy Procurement

Thanks to the work of Magnus Commodities’ professionals and the trust of large consumers in more than 30 countries, we have accumulated a deep knowledge of the energy market, ranging from regulators to gas and electricity traders. This experience is shared with our clients, helping them understand how the economy and politics impact their bills.

At Magnus Commodities, we believe there is no one way to buy or sell energy; each company must find the strategy that aligns with its identity in the short, medium and especially long term. While we cannot predict the future, we help our clients make the best decisions by creating data-driven scenarios.

Our methodology is based on:

• Strategy: We establish a common language and provide the necessary knowledge to understand market fundamentals, designing and executing customized buying strategies that minimize risks derived from market volatility.
• Market Intelligence: We collect and analyze quotes as well as fundamentals on a daily basis, keeping our clients informed about sector trends.
• Trading: We offer independent advice on counterparty selection and contract negotiation. The contract is one of the most important components of the cost of energy, especially in the qualitative clauses that determine what a company will be able to do in the coming years. In order to have the best possible contract, it is not only necessary to know the current offers, but also the needs of the customers, based on what the market will offer in the future and the new requirements around Decarbonization.
• Hedging and Price Settings: We implement purchasing strategies across diversified products and markets. Pricing, or hedging, must be done according to the Strategy initially defined, with the ultimate goal of not only buying energy well in a single year, but in all fiscal years. Decisions on closures are based on 3 components: strategy, historical values of Energy Prices and Economic and geopolitical fundamentals. These 3 factors will define the moments where Magnus Commodities consultants will contact each of the clients, to advise them to take positions.

An important point is the inclusion of the concepts of Sustainability / Decarbonization in the purchase of energy, which leads to those responsible to incorporate elements such as PPAs, GHPs, EACs or Batteries, all of the above elements that will help to achieve the long-awaited Net Zero, a commitment made by the European Union in its Green Deal.