Fri 1 Jul 2016, 14:28 GMT

Global Risk Management posts profit rise


Risk management specialist achieves increase in annual profit.



A/S Global Risk Management, a company specializing in fuel risk management solutions, has managed to surpass last year's record financial result despite increasingly competitive market conditions and high oil price volatility.

Gross profit rose to a level of USD 15.7 million (index 117 to last year) and earnings before tax increased to USD 6.9 million (index 111 to last year).

According to the hedging specialist, the focus throughout the year has been on broadening the client base across its three offices located in Middelfart, Copenhagen and Singapore, as well as serving the needs of it existing clients and improving efficiency.

"The commercial and investment strategy for the coming years is backed by the owner and the support is emphasised by the complete retaining of the earnings of the year in Global Risk Management, thus giving the company a solid financial foundation for the years to come," the company explained in a statement.

Hans Erik Christensen, Managing Director of Global Risk Management, stated: "The past financial year has been yet another testament to the sustainability of our business model and we remain determined to keep evolving and deliver even more value and service to our clients."

Investment activity in systems and employees is said to have "increased drastically" in the last year to support the higher complexity in the market as FSA regulation MiFID II takes effect on 2 January 2018.

"As Global Risk Management is currently operating under exemption from regulation by the Danish FSA, the year of 2015/2016 was also a year of change, as we initiated our preparations for the upcoming MiFID II regulation that will affect the commodity derivatives market in which we operate. We have been strengthening our organisation and partnering with external advisors in order to prepare a smooth transition to the expected status as a regulated company," remarked Christensen.

Global Risk Management is part of A/S United Shipping & Trading Company (USTC) Ltd. group. Bunker firms A/S Dan-Bunkering and KPI Bridge Oil also form part of the group in addition to lubricant business Unimarine, Uni-Chartering A/S and Uni-Tankers A/S.

The company provides fuel risk management solutions to companies that are exposed to oil price fluctuations.


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