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AP Møller-Mærsk Picks SuperDerivatives for Energy Option Valuations

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Global shipping and energy company AP Møller-Mærsk has selected SuperDerivatives to provide independent valuations for its energy options and swaps.

Amitai Razon, sales executive for the Nordic region for SuperDerivatives, indicates that the vendor first met Møller-Mærsk in August last year, after which the firm began testing the vendor’s service in February this year.

The AP Møller-Mærsk Group is present in the oil market as both producer and consumer and currently holds a portfolio of about 900 energy options and swaps. Thomas Skytte, head of middle office and risk management for Maersk Oil Trading, which is responsible for hedging the group’s oil price risk, explains the reasoning behind its choice of SuperDerivatives: “In order to achieve best practice standards and adhere to our corporate governance policies, we needed a third party valuation service we could depend on to complement our own in house systems. After reviewing the available valuation solutions, we came to the conclusion that the best product for the AP Møller-Mærsk Group was SuperDerivatives.”

Skytte continues: “We found SuperDerivatives’ platform to be unique. It provides a one-stop-shop solution, including all market data and modelling. This not only facilitates valuation since we are not required to input our own data and curves, but also yields accurate valuations which corroborate our internal calculations.”

Razon adds the vendor’s perspective: “They chose SuperDerivatives for several reasons. A main factor was our broad asset coverage. We have the market data and the modelling techniques to be able to value crude oil product and refined oil products that other providers can’t do. They also liked the automation of the service – they send us the portfolio on a weekly basis and we send them the results efficiently and accurately. Finally, it was influenced by our strong market reputation in the Nordic region, for example, Nordea and Carnegie are also using SuperDerivatives and this had an impact on Møller-Mærsk.”

He does not see any problems in the future with regards to meeting the shipping and energy firm’s requirements: “Our broad asset coverage enables us to fulfil all of Møller-Mærsk s demands and we cover all of the underlying instruments they need to evaluate. We are also able to add further coverage should the need ever arise.”

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