Standard Chartered continues oil hedging

Standard Chartered Bank having led the way in energy derivatives by structuring and completing the country's first oil hedge with the Ceylon Petroleum Corporation (CPC) on February 07, 2007, continues to provide tailor made solutions to meet the requirements of CPC.

Since the first deal, SCB has provided solutions for Dubai crude, refined products as well as refining margins.

All these structures have been at zero cost to CPC. The payment of USD 62 mil today to CPC is as a result of some of the existing hedges. Chairman - CPC Asantha de Mel said, that they started hedging their exposures in small amounts last year, and since then they have increased the size of the hedges.

Energy markets have remained extremely volatile. Under these situations we have chosen strategies which would benefit CPC, he added.

CEO Standard Chartered Bank Clive Haswell said, that Standard Chartered Bank is happy to continue providing solutions on commodities, and to be associated with CPC in their hedging strategies.

"As a leading international bank with a long heritage and presence in Sri Lanka we are firmly committed to working with regulators and industry leaders to put Sri Lanka on a par with other big regional financial markets, and to play a pivotal role in contributing to the development of the economy.

As the country embarks on an ambitious growth path it is important that products and industry expertise is available to minimize risk, while encouraging growth. This is where we bring our regional expertise and footprint for the benefit of the country as a whole," he said.