INDUSTRY:
Asset Management
LOCATION:
Australia
BACKGROUND:
Centuria Capital Group (ASX:CNI) is an ASX-listed specialist investment manager with a 35 year track-record of delivering a range of products and services to investors, advisers and security holders. Centuria Capital Group has $21.2b in Assets Under Management (AUM)1. Our business is centered around property funds management and investment bonds.
PROBLEM:
Centuria was concerned how to manage the high level of energy market volatility whilst ensuring delivery of a consistent/reliable energy cost. Continuing profitability around assets is of high importance for investors, unwanted large price shocks would not be welcome.
EUTILITY SOLUTION:
Demonstrated the value of utilising progressive purchasing as a means to limit exposures to high energy prices and maximise the lows of the market through opportunistic purchasing.
Hedging the same way an energy retailer does and manages this process under strict budget controls delivering good governance procedures including oversight.
Centuria saw the advantage in doing this and yielded a $2.1M cost avoidance against the average market price. Excellent hedges secured for Calendar Year 2023 was a great commencement to the first year of progressive purchasing.