Koch Supply & Trading (KS&T) is a subsidiary of Koch Industries and has over 40 years of experience in global commodities trading. KS&T trades a wide range of physical commodities as well as financial instruments across industries like petroleum, chemicals, metals, agriculture and more. They provide customers with market insights, risk management strategies and access to global markets.
A commodity is generally considered a standardized, homogeneous good that can be processed and resold. However, in reality commodities often vary widely in quality and are difficult to define and standardize. Creating measurement and quality standards is challenging but necessary to facilitate trading. Commodity exchanges have played a key role in addressing these challenges to establish liquid commodity markets.
Dokumen tersebut memberikan penjelasan singkat tentang analisis teknikal berdasarkan pola harga masa lalu untuk memprediksi arah harga di masa depan, jenis-jenis chart seperti line chart, bar chart dan candlestick chart, berbagai pola candlestick seperti double top, double bottom, head and shoulders, serta faktor-faktor yang mempengaruhi pergerakan harga minyak mentah seperti penguatan dolar AS, kelebihan pasokan minyak, dan rencana pemang
The document provides an overview of price risk management and hedging strategies. It discusses the outlook for commodity prices including oil, analyzes counterparty credit risk during the credit crunch, and reviews different hedging policies and instruments that can be used in volatile markets. Specific hedging programs like discretionary, ratable, and structured opportunistic are defined and examples are given. Current market conditions and factors influencing prices are also assessed.
Koch Logistics Retail And Logistics Overview May 6 2008tqhall
The document provides an overview of Koch Logistics' retail and logistics capabilities presented by Jennifer Johnson and Darren Nelson. It discusses Koch Logistics' 30 years of experience in transportation and distribution, its asset and non-asset service offerings, capabilities in transportation, supply chain management and technology, approaches and partnerships in retail, examples of projects for retailers, and strategic growth areas.
Energy markets and Geopolitics - Strathclyde University 28 11_16Chris Cook
This document discusses the evolution of energy markets and outlines a proposal for a decentralized "Nondominium" energy market model. Key points:
- It describes the evolution from physical to centralized to potentially decentralized connected energy markets.
- It proposes a "Nondominium" model as a neutral cooperative framework to jointly govern and guarantee prepayment for future energy production through "energy loans", distributing risk.
- This model could take politics out of energy, bring stability, and incentivize energy efficiency through an "energy dividend" paid in tradable prepayment credits rather than dollars.
Global Business Strategy of British Petroleum (BP)Faysal Alam
This document provides information about globalization and BP. It discusses the key features and advantages/disadvantages of globalization. It then provides a brief history of BP, outlining its mission, vision, organizational structure, key facts and figures. It describes BP's four core values of being progressive, innovative, green, and performance-driven. Finally, it lists some of BP's major product and service brands such as BP, Aral, and others.
- LITASCO SA presentation on international oil market and oil trading trends
- LITASCO is LUKOIL's international marketing, supply, and trading subsidiary based in Geneva
- The presentation covers LITASCO and LUKOIL's operations, the roles of various participants in the oil market, and how the market has evolved from predominantly physical trading to also including significant paper or derivatives trading
The document summarizes the intern's work analyzing energy derivative markets at Futures First. It provides an overview of the company, introduces financial instruments and derivatives, and describes the intern's market analysis focusing on fundamental and technical factors affecting energy commodity prices like crude oil, natural gas, and gasoline. The internship helped them learn about supply and demand drivers in energy markets and factors influencing the prices of key energy products.
A commodity is generally considered a standardized, homogeneous good that can be processed and resold. However, in reality commodities often vary widely in quality and are difficult to define and standardize. Creating measurement and quality standards is challenging but necessary to facilitate trading. Commodity exchanges have played a key role in addressing these challenges to establish liquid commodity markets.
Dokumen tersebut memberikan penjelasan singkat tentang analisis teknikal berdasarkan pola harga masa lalu untuk memprediksi arah harga di masa depan, jenis-jenis chart seperti line chart, bar chart dan candlestick chart, berbagai pola candlestick seperti double top, double bottom, head and shoulders, serta faktor-faktor yang mempengaruhi pergerakan harga minyak mentah seperti penguatan dolar AS, kelebihan pasokan minyak, dan rencana pemang
The document provides an overview of price risk management and hedging strategies. It discusses the outlook for commodity prices including oil, analyzes counterparty credit risk during the credit crunch, and reviews different hedging policies and instruments that can be used in volatile markets. Specific hedging programs like discretionary, ratable, and structured opportunistic are defined and examples are given. Current market conditions and factors influencing prices are also assessed.
Koch Logistics Retail And Logistics Overview May 6 2008tqhall
The document provides an overview of Koch Logistics' retail and logistics capabilities presented by Jennifer Johnson and Darren Nelson. It discusses Koch Logistics' 30 years of experience in transportation and distribution, its asset and non-asset service offerings, capabilities in transportation, supply chain management and technology, approaches and partnerships in retail, examples of projects for retailers, and strategic growth areas.
Energy markets and Geopolitics - Strathclyde University 28 11_16Chris Cook
This document discusses the evolution of energy markets and outlines a proposal for a decentralized "Nondominium" energy market model. Key points:
- It describes the evolution from physical to centralized to potentially decentralized connected energy markets.
- It proposes a "Nondominium" model as a neutral cooperative framework to jointly govern and guarantee prepayment for future energy production through "energy loans", distributing risk.
- This model could take politics out of energy, bring stability, and incentivize energy efficiency through an "energy dividend" paid in tradable prepayment credits rather than dollars.
Global Business Strategy of British Petroleum (BP)Faysal Alam
This document provides information about globalization and BP. It discusses the key features and advantages/disadvantages of globalization. It then provides a brief history of BP, outlining its mission, vision, organizational structure, key facts and figures. It describes BP's four core values of being progressive, innovative, green, and performance-driven. Finally, it lists some of BP's major product and service brands such as BP, Aral, and others.
- LITASCO SA presentation on international oil market and oil trading trends
- LITASCO is LUKOIL's international marketing, supply, and trading subsidiary based in Geneva
- The presentation covers LITASCO and LUKOIL's operations, the roles of various participants in the oil market, and how the market has evolved from predominantly physical trading to also including significant paper or derivatives trading
The document summarizes the intern's work analyzing energy derivative markets at Futures First. It provides an overview of the company, introduces financial instruments and derivatives, and describes the intern's market analysis focusing on fundamental and technical factors affecting energy commodity prices like crude oil, natural gas, and gasoline. The internship helped them learn about supply and demand drivers in energy markets and factors influencing the prices of key energy products.
The document introduces Guarantees of Origin (GOs) trading on the European Energy Exchange (EEX). It discusses:
1) EEX's efforts to standardize and introduce exchange-traded GO futures contracts to bring transparency to the market, with products bundled by region and technology.
2) The current characteristics of the opaque, bilateral GO trading market with fragmented rules and a lack of price transparency.
3) Perspectives on the future development of the growing 250 TWh GO market, including changes in national support regimes and disclosure rules that could impact prices.
Thomas Siegl ECC, the view from a clearing housechrisnolan4
This document discusses preparations for new EMIR regulations regarding clearing of over-the-counter (OTC) derivatives. It notes uncertainty around how ESMA will define contracts subject to mandatory clearing. It outlines ECC's preparations to maximize customer benefits, including optimizing margining across commodities and expanding OTC clearing offerings. Standardizing OTC contract specifications could influence whether clearing is required. The degree of standardization impacts risk management and collateral levels.
The Perseus Shipping Fund seeks to achieve capital growth for shareholders by investing in maritime vessels through a German partnership. This structure allows them to benefit from preferential German tax rates and enhance returns for investors. The fund will invest in shipping sectors like financing ship companies, acquiring stakes in ship companies, and direct vessel investments. The minimum investment is $100,000 and the target annual return is 8%.
The Perseus Shipping Fund seeks to achieve capital growth for shareholders by investing in maritime vessels through a German partnership. This structure allows them to benefit from preferential German tax rates and enhance returns for investors. The fund will invest in shipping sectors like financing ship companies, acquiring stakes in ship companies, and direct vessel investments. The minimum investment is $100,000 and the target annual return is 8%.
This document provides an overview of carbon finance research conducted by Zhong Lun Law Firm. It discusses carbon markets and the roles of the Intercontinental Exchange (ICE) and London Energy Brokers Association (LEBA). It outlines the differences between over-the-counter (OTC) trading and exchange-traded derivatives, and how trading has evolved from floor-based to electronic models. The document also summarizes regulation of the carbon finance sector in the UK by the Financial Conduct Authority, Prudential Regulation Authority, and HM Treasury. Prospects for linkage between the Chinese and EU carbon markets are also briefly mentioned.
Charles Eddolls has over 30 years of experience as an operations director for leading companies in the recycling and metals industries. As the founding operations director for European Metal Recycling, he helped develop the company into one of the world's largest metal recycling companies. He later founded Cygnet Consultancy and Group Supplies, where he specialized in procurement and achieved significant cost savings for both public and private sector clients through reverse auctions and strategic sourcing, including savings of over £100 million for UK government contracts.
Marquard & Bahls is a leading independent energy supply, trading and logistics company with a presence in 40 countries. It operates across various parts of the energy value chain, including: oil trading, tank storage and logistics, aviation fueling, dry bulk handling, upstream services, renewable energies, carbon trading, fuel analysis, and gas supply. It aims to be the preferred partner in energy solutions through high quality and safe operations, empowering its over 8,500 employees around the world.
Exxon Mobil is an integrated oil and gas company headquartered in Irving, Texas. It explores for, produces, transports, and sells oil and gas and manufactures petrochemicals worldwide. Exxon Mobil operates in upstream, midstream, downstream, and chemical segments across over 30 countries. As the world's largest publicly traded international oil and gas company, Exxon Mobil faces risks from global economic, political, and environmental factors that influence oil and gas supply and demand.
The document discusses the hydrocarbon resins market. It provides an overview of hydrocarbon resins, describing them as glass-like oligomers produced from petroleum by-product streams through polymerization. These resins can be hydrogenated to improve properties and are used in applications like rubber, asphalt, and coatings due to their low cost. The document also notes that Transparency Market Research provides business information reports and services on markets including pharmaceuticals, chemicals, and technology.
The document discusses the hydrocarbon resins market. It provides an overview of hydrocarbon resins, describing them as glass-like oligomers produced from polymerizing by-product streams from petroleum cracking. These resins can be hydrogenated to improve properties and are used in rubber, asphalt, and coating applications. The document also notes that Transparency Market Research provides business information reports and services on various markets including the hydrocarbon resins market.
The increased volatility of commodity markets and the rapidly evolving corporate governance and financial reporting environments place additional demands on risk management and financial reporting. Integrating the two into a single view of risks and results is the challenge facing commodity companies and their stakeholders.
In re-issuing this guide, our ambition is to support the need for a better understanding of how trading commodities works; to unveil some of the activities, often misunderstood, but used by traders to manage risk and to explain how the financial results of these activities are put together and reported.
This publication provides you with insights in topics such as:
• How the commodity trading industry is evolving
• The basics of commodity markets
• The elements of risk management
• Aspects of the financial statements that are unique for commodity trading companies
• How to recognize and measure transactions and commodity inventory positions
• How to apply fair value accounting for external reporting
• The specific requirements for derecognition of assets
Canada continues to be the world’s leading capital market for natural resource companies. During 2009, mining companies listed on the Toronto Stock Exchange (the “TSX”), Canada’s senior market, or on the junior TSX Venture Exchange (the “TSX-V”), raised in excess over C$22 billion in equity financings. This represented about the same as the amount raised on the London Stock Exchange (“LSE”)/AIM, however 90% of the LSE/AIM figure was represented by two transactions (Rio Tinto $12.4 billion and Xstrata $7.2 billion). In addition, the oil and gas sector remained strong with TSX and TSX-V listed companies raising over C$9.2 billion in 2009. Notwithstanding the “challenging” first five months of 2010, TSX and TSX-V listed mining companies raised over C$6.2 billion and oil and gas companies C$4.3 billion.
Understanding the impact of Mexico's energy reformCortney Becker
A new era for the Mexican energy sector is about to begin. But the implementation of the reform program will prove challenging and possibly painful. Steps along the supply chain will interact with various commercial aspects in a way not all participants will be able to anticipate.
All market participants need to understand the next steps in the process, how they affect foreign companies and their implications for energy markets. This reform will have significant regional impacts, whether or not your company is directly involved in Mexico.
This document provides an overview and analysis of the integrated oil and gas industry. It begins with definitions of the upstream, midstream, and downstream segments. It then discusses the major industry drivers like expected capital expenditures through 2025. The largest portions are spent on projects in the US, Russia, and Canada. Porter's Five Forces model is also examined, finding low buyer power, moderate supplier power, and a low threat of new entrants due to industry consolidation and regulations.
Noble Energy is an independent oil and gas exploration and production company. Their diverse portfolio includes assets in unconventional plays in the US and offshore assets globally. Valuation of Noble Energy requires analyzing historical and projected financial statements to determine the value based on future cash flows. The oil and gas industry faces various risks but also benefits from growing global energy demand and technological advancements that allow access to new reserves. Competitors of Noble Energy include Devon Energy, Hess Corporation, and Marathon Oil in the independent exploration and production sector.
Walid El Houri is an experienced international entrepreneur and consultant with over 45 years of experience in industrial and economic development, financial engineering, and business consulting. He has extensive expertise in areas such as international business, industrial development, financial management, and import/export. Throughout his career, he has successfully consulted with and represented many large corporations, completing billions of dollars worth of contracts, projects, and deals around the world. He remains actively involved in international trade and financial markets through his company, Aminex Group.
GEBrochure2016(25) @LuisColasante #LuisColasanteSogefi Group
This document provides an agenda and details for the Global Energy 2016 conference and exhibition taking place on March 23-24, 2016 in Geneva, Switzerland. The conference will focus on topics such as oil and gas markets, renewable energy, power trading, carbon markets, and energy market regulation. It will include panels, presentations, and networking opportunities with hundreds of energy industry professionals.
The article discusses waste to energy as a way to recycle hydrocarbon footprints. It notes that global energy demand is expected to increase 50% by 2030, requiring an additional 30 billion barrels of oil annually. This increased demand is driven by growing economies in emerging markets seeking to industrialize and raise living standards. The article suggests waste to energy could help meet this demand by converting municipal waste and agricultural residues into energy, providing a recyclable source of hydrocarbons.
The German-Finnish Chamber of Commerce is organizing virtual B2B meetings between German battery recycling companies and Finnish market players from September 28th to October 2nd, 2020. The document provides descriptions of 10 German companies operating in the battery recycling sector, including their areas of expertise and the types of Finnish organizations they are looking to meet. These companies specialize in areas like mechanical recycling processes, battery data platforms, shockwave battery dismantling, precious metal recovery, and cathode material refining.
Unburnable Carbon - Are the world's financial markets carrying a carbon bubble?Marcellus Drilling News
A "report" issued by the global warming true believers at the Carbon Tracker Institute. The report makes the false claim that fossil fuel companies are vastly overvalued because the assets they own, carbon in the ground, will never get used because so-called renewable sources are coming on strong and will replace those sources. The point they try to make is that oil and gas companies are essentially worthless and investors should stay away from them. What they call a "carbon bubble." Horse manure.
The document introduces Guarantees of Origin (GOs) trading on the European Energy Exchange (EEX). It discusses:
1) EEX's efforts to standardize and introduce exchange-traded GO futures contracts to bring transparency to the market, with products bundled by region and technology.
2) The current characteristics of the opaque, bilateral GO trading market with fragmented rules and a lack of price transparency.
3) Perspectives on the future development of the growing 250 TWh GO market, including changes in national support regimes and disclosure rules that could impact prices.
Thomas Siegl ECC, the view from a clearing housechrisnolan4
This document discusses preparations for new EMIR regulations regarding clearing of over-the-counter (OTC) derivatives. It notes uncertainty around how ESMA will define contracts subject to mandatory clearing. It outlines ECC's preparations to maximize customer benefits, including optimizing margining across commodities and expanding OTC clearing offerings. Standardizing OTC contract specifications could influence whether clearing is required. The degree of standardization impacts risk management and collateral levels.
The Perseus Shipping Fund seeks to achieve capital growth for shareholders by investing in maritime vessels through a German partnership. This structure allows them to benefit from preferential German tax rates and enhance returns for investors. The fund will invest in shipping sectors like financing ship companies, acquiring stakes in ship companies, and direct vessel investments. The minimum investment is $100,000 and the target annual return is 8%.
The Perseus Shipping Fund seeks to achieve capital growth for shareholders by investing in maritime vessels through a German partnership. This structure allows them to benefit from preferential German tax rates and enhance returns for investors. The fund will invest in shipping sectors like financing ship companies, acquiring stakes in ship companies, and direct vessel investments. The minimum investment is $100,000 and the target annual return is 8%.
This document provides an overview of carbon finance research conducted by Zhong Lun Law Firm. It discusses carbon markets and the roles of the Intercontinental Exchange (ICE) and London Energy Brokers Association (LEBA). It outlines the differences between over-the-counter (OTC) trading and exchange-traded derivatives, and how trading has evolved from floor-based to electronic models. The document also summarizes regulation of the carbon finance sector in the UK by the Financial Conduct Authority, Prudential Regulation Authority, and HM Treasury. Prospects for linkage between the Chinese and EU carbon markets are also briefly mentioned.
Charles Eddolls has over 30 years of experience as an operations director for leading companies in the recycling and metals industries. As the founding operations director for European Metal Recycling, he helped develop the company into one of the world's largest metal recycling companies. He later founded Cygnet Consultancy and Group Supplies, where he specialized in procurement and achieved significant cost savings for both public and private sector clients through reverse auctions and strategic sourcing, including savings of over £100 million for UK government contracts.
Marquard & Bahls is a leading independent energy supply, trading and logistics company with a presence in 40 countries. It operates across various parts of the energy value chain, including: oil trading, tank storage and logistics, aviation fueling, dry bulk handling, upstream services, renewable energies, carbon trading, fuel analysis, and gas supply. It aims to be the preferred partner in energy solutions through high quality and safe operations, empowering its over 8,500 employees around the world.
Exxon Mobil is an integrated oil and gas company headquartered in Irving, Texas. It explores for, produces, transports, and sells oil and gas and manufactures petrochemicals worldwide. Exxon Mobil operates in upstream, midstream, downstream, and chemical segments across over 30 countries. As the world's largest publicly traded international oil and gas company, Exxon Mobil faces risks from global economic, political, and environmental factors that influence oil and gas supply and demand.
The document discusses the hydrocarbon resins market. It provides an overview of hydrocarbon resins, describing them as glass-like oligomers produced from petroleum by-product streams through polymerization. These resins can be hydrogenated to improve properties and are used in applications like rubber, asphalt, and coatings due to their low cost. The document also notes that Transparency Market Research provides business information reports and services on markets including pharmaceuticals, chemicals, and technology.
The document discusses the hydrocarbon resins market. It provides an overview of hydrocarbon resins, describing them as glass-like oligomers produced from polymerizing by-product streams from petroleum cracking. These resins can be hydrogenated to improve properties and are used in rubber, asphalt, and coating applications. The document also notes that Transparency Market Research provides business information reports and services on various markets including the hydrocarbon resins market.
The increased volatility of commodity markets and the rapidly evolving corporate governance and financial reporting environments place additional demands on risk management and financial reporting. Integrating the two into a single view of risks and results is the challenge facing commodity companies and their stakeholders.
In re-issuing this guide, our ambition is to support the need for a better understanding of how trading commodities works; to unveil some of the activities, often misunderstood, but used by traders to manage risk and to explain how the financial results of these activities are put together and reported.
This publication provides you with insights in topics such as:
• How the commodity trading industry is evolving
• The basics of commodity markets
• The elements of risk management
• Aspects of the financial statements that are unique for commodity trading companies
• How to recognize and measure transactions and commodity inventory positions
• How to apply fair value accounting for external reporting
• The specific requirements for derecognition of assets
Canada continues to be the world’s leading capital market for natural resource companies. During 2009, mining companies listed on the Toronto Stock Exchange (the “TSX”), Canada’s senior market, or on the junior TSX Venture Exchange (the “TSX-V”), raised in excess over C$22 billion in equity financings. This represented about the same as the amount raised on the London Stock Exchange (“LSE”)/AIM, however 90% of the LSE/AIM figure was represented by two transactions (Rio Tinto $12.4 billion and Xstrata $7.2 billion). In addition, the oil and gas sector remained strong with TSX and TSX-V listed companies raising over C$9.2 billion in 2009. Notwithstanding the “challenging” first five months of 2010, TSX and TSX-V listed mining companies raised over C$6.2 billion and oil and gas companies C$4.3 billion.
Understanding the impact of Mexico's energy reformCortney Becker
A new era for the Mexican energy sector is about to begin. But the implementation of the reform program will prove challenging and possibly painful. Steps along the supply chain will interact with various commercial aspects in a way not all participants will be able to anticipate.
All market participants need to understand the next steps in the process, how they affect foreign companies and their implications for energy markets. This reform will have significant regional impacts, whether or not your company is directly involved in Mexico.
This document provides an overview and analysis of the integrated oil and gas industry. It begins with definitions of the upstream, midstream, and downstream segments. It then discusses the major industry drivers like expected capital expenditures through 2025. The largest portions are spent on projects in the US, Russia, and Canada. Porter's Five Forces model is also examined, finding low buyer power, moderate supplier power, and a low threat of new entrants due to industry consolidation and regulations.
Noble Energy is an independent oil and gas exploration and production company. Their diverse portfolio includes assets in unconventional plays in the US and offshore assets globally. Valuation of Noble Energy requires analyzing historical and projected financial statements to determine the value based on future cash flows. The oil and gas industry faces various risks but also benefits from growing global energy demand and technological advancements that allow access to new reserves. Competitors of Noble Energy include Devon Energy, Hess Corporation, and Marathon Oil in the independent exploration and production sector.
Walid El Houri is an experienced international entrepreneur and consultant with over 45 years of experience in industrial and economic development, financial engineering, and business consulting. He has extensive expertise in areas such as international business, industrial development, financial management, and import/export. Throughout his career, he has successfully consulted with and represented many large corporations, completing billions of dollars worth of contracts, projects, and deals around the world. He remains actively involved in international trade and financial markets through his company, Aminex Group.
GEBrochure2016(25) @LuisColasante #LuisColasanteSogefi Group
This document provides an agenda and details for the Global Energy 2016 conference and exhibition taking place on March 23-24, 2016 in Geneva, Switzerland. The conference will focus on topics such as oil and gas markets, renewable energy, power trading, carbon markets, and energy market regulation. It will include panels, presentations, and networking opportunities with hundreds of energy industry professionals.
The article discusses waste to energy as a way to recycle hydrocarbon footprints. It notes that global energy demand is expected to increase 50% by 2030, requiring an additional 30 billion barrels of oil annually. This increased demand is driven by growing economies in emerging markets seeking to industrialize and raise living standards. The article suggests waste to energy could help meet this demand by converting municipal waste and agricultural residues into energy, providing a recyclable source of hydrocarbons.
The German-Finnish Chamber of Commerce is organizing virtual B2B meetings between German battery recycling companies and Finnish market players from September 28th to October 2nd, 2020. The document provides descriptions of 10 German companies operating in the battery recycling sector, including their areas of expertise and the types of Finnish organizations they are looking to meet. These companies specialize in areas like mechanical recycling processes, battery data platforms, shockwave battery dismantling, precious metal recovery, and cathode material refining.
Unburnable Carbon - Are the world's financial markets carrying a carbon bubble?Marcellus Drilling News
A "report" issued by the global warming true believers at the Carbon Tracker Institute. The report makes the false claim that fossil fuel companies are vastly overvalued because the assets they own, carbon in the ground, will never get used because so-called renewable sources are coming on strong and will replace those sources. The point they try to make is that oil and gas companies are essentially worthless and investors should stay away from them. What they call a "carbon bubble." Horse manure.
2. Drawing from more Koch Supply & Trading companies are subsidiaries of
one of the world’s largest privately held companies,
than 40 years of global Koch Industries, Inc., and backed by the strong credit
rating of Koch Resources, LLC.
trading and operations
experience, Koch KS&T companies are significant suppliers, traders and
financial market makers of many commodities. KS&T’s
Supply & Trading affiliated companies include a diverse group of global
companies provide businesses that operate in most industrial commodity
sectors. As a result, KS&T companies offer customers
customers world-class the benefit of broad market knowledge, an understanding
of risk, as well as an ability to identify when and how
market knowledge
to actively manage risk to maximize value. While some
and coverage. These financial institutions’ market coverage follows the
cyclicality of the global markets, Koch companies take a
companies are active longer-term view – both in trading and industrial business
in both physical position undertakings. This approach has allowed KS&T
companies to offer physical and financial market liquidity
commodities as well at times when others have pulled back. Commodities
as financially settled are integral to KS&T’s businesses; that commitment is
evident from the companies’ long and active history of
instruments. trading involvement.
3. WHY KOCH
S U P P LY & T R A D I N G ?
- Diverse experience
- Deep trading history
- Substantial market insight from physical assets
- Track record of innovation
- First energy volatility swap originator
- Retail pricing protection products
- Spread options
- Backed by credit rating higher than 98 percent
of rated energy companies
- Integrated knowledge of physical and paper
products
- Interest in/access to international trading regions
KS&T companies trade multiple commodities.
- Robust logistics operation
Core trading capabilities are rooted in energy
- Active on a number of international exchanges, products, which Koch companies have been
including acting as specialist market maker for trading for decades. From that basis, a global
select products commodity trading business was built, evolving
into the pioneering use of risk management
- NYMEX - CBOT
products, including participation in the world’s
- LME - CME
first oil swap more than 20 years ago. That
- IPE - EUREX
innovative drive has been repeated many times
- SPCEX - LIFFE
as Koch companies were the first or among the
- ICE first movers and initial liquidity providers in a
number of arenas:
- Worldwide coverage
OUR CUSTOMERS - Early traders of instruments linked to retail fuel
price indices
- Energy fuel consumers: airlines, transportation - Early liquidity provider in ethanol derivatives
companies such as trucking, railroads, regional - Early mover in oil volatility swaps and options on
price differentials
transit authorities, manufacturers and utilities
- First retail surcharge hedges
- Refiners
- Early participants in options on price
differentials, RBOB and ethanol
- Energy producers: exploration and production
- Early movers in natural gas and power trading
companies, utilities
- First weather derivatives trades and early
- Industrial consumers: producers, end-users,
liquidity providers
traders and distributors of metals and steel - Early movers in air emissions trading
- Initiators and market makers for the North
- Financial intermediaries: banks, commodity
American aluminum contract
traders, and brokers
- Initiators and market makers for flat steel
- Investors: Pension funds, hedge funds, financial products
commodity trading advisors, endowments
4. traders use refined products knowledge to
PETROLEUM
provide customers insight and experience
AND CHEMICALS
in the physical market. KS&T is also the
At one time a Koch company was the largest merchant blender of gasoline in the
largest crude oil gatherer in North America. U.S. Gulf Coast, a key U.S. market.
As the company’s volumes grew, so did
the need to market and trade crude oil. Natural Gas Liquids and Olefins
Today, Koch Supply & Trading companies Koch Supply & Trading companies are the
provide supply and offtake services for largest traders of olefins in North America
refiners (including sister company Flint and significant traders of gas liquids,
Hills Resources and KS&T’s refinery with direct access to the physical market
in The Netherlands). KS&T companies through long-term arrangements. As with
actively participate in physical, futures other commodities, Koch companies
and swap markets around the globe to developed a trading capability around
provide the right product at the right their historical operations and investments
time to its customers. KS&T companies in natural gas liquids assets and then
manage other global trading activities followed the natural extension downstream
including physical movement and storage to trading olefins.
of numerous grades of crude oil and
feedstocks. In addition, the companies Gas, Power and Emissions
offer a robust petrochemicals trading Koch Supply & Trading companies have
capability. These petrochemicals become been involved in the natural gas, power
key ingredients in a host of consumer and emissions trading markets in North
products used around the world. America, following the 2004 divestiture
of Entergy-Koch Trading, LP. Emissions
Koch Supply & Trading companies offer credit markets are more fully developed
counterparties a full menu of refined in Europe but can be traded around
products, including jet, diesel fuels and the world by companies with exposure
blended gasolines, some of which are to CO2 and sulfur emissions limits.
produced at Koch company facilities. KS&T companies have expanded their
Like the crude oil trading capability, KS&T emissions trading involvement in Europe.
5. PRODUCTS TRADED
Metals and Steel
Koch Supply & Trading companies offer
risk management products in the major Koch Supply & Trading companies offer global coverage for a number
base metals such as aluminum, copper, of physical commodities, as well as financial derivatives and innovative
risk management products. These are offered through regional offices in
zinc and nickel. Clients who do business
North America, Europe and Asia to provide tailored risk management
with KS&T companies enjoy the benefits
services for counterparties wishing to address their risk challenges in
of a knowledgeable group of people and
various physical and financial markets. Koch Quantitative Trading, LP, a
logistical infrastructure comfortable with
KS&T company, invests shareholder capital in the global capital markets.
metal commodities in both their physical
and derivative forms. This unique Crude Oil:
combination allows these companies to global crude oil markers (WTI, Brent, Dubai) and many grades of oil
facilitate business from industry as well priced off these markers
as the financial community. Clients are
Refined Products & Derivatives:
served via offices in Singapore, London,
light and middle distillates (naphtha, jet, heating oil and various grades of
New York and Houston.
diesel fuel); unleaded gasolines and their components; fuel oil; ethanol;
petrochemicals such as benzene, toluene, mixed xylenes, paraxylene
Koch Supply & Trading companies have
and styrene; and intermediate feedstocks such as vacuum gasoil and
applied their expertise in solving client straight-run fuel oil
challenges in the steel industry. Unlike
most sizeable commodity sectors – Natural Gas Liquids & Olefins:
such as petroleum, metals, energy and ethane, propane, butane, natural gasoline, ethylene and propylene
agriculture which have financial markets
Natural Gas, Power & Emissions:
to manage price risk – historically,
natural gas, electric power and various environmental markets
there was little that steel producers or
consumers could do to manage price
Metals & Steel:
exposure. Koch Metals companies offer a
aluminum, copper, tin, zinc, nickel, lead, precious and industrial metals,
variety of financial price risk management and steel
and structured products to aid clients
exposed to steel price fluctuations. Financial:
foreign currency, interest rates, and fixed income (credit) products,
equity arbitrage, exchange-traded commodities, municipal bonds
Freight:
clean and dirty tankers, barges and derivatives based upon
retail prices to hedge freight surcharges
Other Koch companies such as Koch Carbon, LLC and Koch Nitrogen
Company globally trade minerals and fertilizer; Koch Pulp & Paper
Trading, LLC trades recovered pulp and paper products; and Koch
Financial Corporation companies offer financial products tailored to
specific customer groups.
6. KEY DATES
RISK MANAGEMENT PRODUCTS
1969 A Koch company begins
international crude oil trading.
Koch Supply & Trading companies recognize that the
goals of price risk management tools include managing
1986 First over-the-counter oil derivatives
price, revenue and cost volatility, creating a more
introduced by a Koch company and
fungible base commodity product, and creating financial
Chase Manhattan Bank.
liquidity in pricing indices.
1997 A Koch company begins trading
weather derivatives. Koch Supply & Trading employees develop individualized
products to help counterparties throughout the world
1997 Koch Metals Trading Limited reach their risk management goals.
becomes a member of London
Metal Exchange.
Swaps are the most common of all price risk management
tools. Swaps can allow a producer or consumer, for
2001 A Koch company becomes the
example, to lock in a particular purchase or sale price
specialist market maker for
for a fixed period of time. Options structures, including
aluminum futures contracts on the
collars, offer more flexibility in hedging structures and may
New York Mercantile Exchange.
involve net cash payment or receipt depending on tenors,
2003 Koch Supply & Trading, LP develops volumes, and threshold price levels (strikes).
and becomes market maker for flat
rolled steel financial products.
The physical purchase or sale of energy commodities does
not change with the implementation of a hedging program.
2005 Koch Supply & Trading, LP adds
natural gas and natural gas liquids
A hedge is simply a cash contract meant to offset the
to portfolio.
primary exposure to commodity prices to some extent.
Of course, entering into a hedging program does not
2006 Koch Supply & Trading, LP adds
electricity and air emissions to imply these structures are without risk.
portfolio.
KS&T companies are also innovators in developing other
2006 A Koch company begins
customized derivatives designed to effectively manage
trading ethanol derivatives.
exposure to price risk. The companies’ traders combine
petroleum and metals trading with hedging instruments
2008 Koch Supply & Trading, LP
to offer risk management products to market participants
completes first U.S. carbon
across the spectrum of industries. They also provide financial
allowance trade under Regional
asset managers with access to commodity markets.
Greenhouse Gas Initiative.
7. K O C H S U P P LY
& TRADING
C O N TA C T S
Koch Supply & Trading, LP
20 E. Greenway Plaza
Houston, Texas 77046
713-544-6080
22nd Floor, 667 Madison Ave.
New York, New York 10021
212-319-4895
KS&T companies deal directly with corporate and
investor clients and provide liquidity to banks to hedge
4111 E. 37th St. North
their customers’ commodity exposures. Wichita, Kan. 67220
316-828-5500
Koch Supply & Trading companies are also leaders in
trading structured cross-derivatives across commodities Koch Supply & Trading Company Limited
that have significant residual (non-standard) risks. and Koch Metals Trading Limited*
Fountain House - 6th floor
Transactions utilize various instruments and tools
130 Fenchurch Street
dependent upon the counterparty’s specific objectives.
London, GT EC3M5DJ
+44 207 648 6300
KOCH INDUSTRIES, INC.
Koch Refining International Pte. Ltd.
Koch Industries, Inc., based in Wichita, Kan., owns a 260 Orchard Road #11-01/09, The Heeren
diverse group of companies with $110 billion in revenues, Singapore 238855
a presence in nearly 60 countries and about 80,000 +65 6732 7555
employees. Familiar Koch companies’ brands include
Koch Supply & Trading Sarl
STAINMASTER® carpet, LYCRA® spandex, Quilted
Route de Pré-Bois 20, 1215
Northern® tissue and Dixie® cups and tabletop products.
Genève 15
+41 22 737 4200
Koch Resources, LLC maintains long-term credit
ratings of Aa3 from Moody’s Investors Service and A+
Public Affairs and General Information
from Standard & Poor’s Rating Group. These ratings Koch Supply & Trading, LP
are based on consolidated financials and demonstrate 281-363-7260
the company’s conservative financial structure, strong
operating cash flows, and sizable liquidity position. Human Resources
Koch Supply & Trading, LP
Wichita, Kan.
Since 1961 the value of the Standard & Poor’s 500
316-828-5500
has grown about 143-fold, assuming reinvestment of
dividends. In this same period, Koch Industries, Inc.’s
value has grown more than 2,400-fold, using the same *Koch Supply & Trading Company Limited and
assumptions. Koch Metals Trading Limited are authorized and
regulated by the Financial Services Authority.
They appear in the FSA Register under numbers
In the past 10 years, revenue growth for the Koch Industries
106237 and 184882 respectively.
group of companies increased 150 percent, with net income
increasing almost 450 percent during that timeframe.