Performance & risk management

 Royal Petrokimya has diversified its business to trading in a wide spectrum of commodity products including crude oil, refined oil products, petrochemicals, natural gas, LNG, power, coal, carbon emissions, freight, iron ore, base metals and soft commodities. The Group employs more than 50 people and is privately owned by its founding shareholders and a group of senior employees. A key success factor is our extensive risk management culture. 

Performance Royal Petrokimya is one of the energy traders in the world. Our financial performance shows a low correlation with the commodity cycle.  Despite recent macro economic events and geopolitical turmoil, our business model continues to prove its ability to consistently capture profitable opportunities. 

Solid, unlevered asset portfolio In addition to our sound equity base, Royal Petrokimya has plan to have an attractive portfolio of fixed assets ranging from upstream to essential business infrastructure. Storage and logistics assets enable Royal Petrokimya to create or enhance trading opportunities. 

Risk management

Royal Petrokimya manages market, financial and operational risks associated with transporting commodities in significant volumes around the world.

We aim to perform in all aspects of the risk management spectrum. We continue to invest in our infrastructure through strategic Energy Trading & Risk Management (ETRM) systems. Our human capital is engrained with a corporate culture stressing the values of accountability, responsibility and communication at all levels of the organization.

Financial risk

Risk management functions are rigorously separated and independent from front office. Risks are reported to the highest level of the company management. We utilize a wide range of techniques and metrics at corporate, portfolio or trading level.  Our robust control process covers the entire life cycle of risk from inception to settlement.

We believe that daily marking to Fair Market Value of all positions held in the company is vital to understanding and stating our risk.

Credit risk is assiduously managed by our Credit Department, providing a vital link between corporate risk management functions and the front office trading units. The department provides necessary checks and balances to facilitate new trading opportunities while also mitigating our ongoing counterparty, sector and country credit risks.

Operational Risk Management

We apply extraordinary attention to detail in ensuring the operational suitability of the vessels, barges, trailers and wagons that we use to transport commodities. Shipping, cargo management, loading and unloading is overseen by dedicated experts together with independent inspection companies. Products in storage and the storage assets themselves are continuously monitored.

We aim to consistently reach the highest standards with regard to our safety, health, environment and quality (SHEQ) activities, and maintain these standards wherever we operate.