Green Oleo – A winning strategy to diversify risk

Green Oleo, one of Europe’s leading producers of fine oleochemicals from renewable sources, believes that the evolution of the global economic environment and the consequent increase in energy costs, particularly gas, will soon highlight the value of prudent strategic choices in energy cost management.

The details

The company has always paid great attention to energy supply costs due to the intrinsic characteristics of its industrial process. For this reason, it has acquired considerable knowledge of the dynamics of the energy market and in particular of gas, protecting itself from increases in purchase prices. In order to mitigate the volatility of quotations, the approach has always been dynamic, mediating between medium-long term supplies, with relative fixing of the purchase price of gas, and spot purchases on the market.

In recent months, the price of gas has undergone a sharp increase (+118% TTF Natural Gas Futures from the lows of June 2023), but the impact on the Company has been mediated by its ability to have locked in 50% of its supplies at an average price that in a bullish energy price context is convenient with an overall positive impact on margins.

Green Oleo expects its dynamic gas pricing strategy to progressively create value as the global economic environment pushes up energy prices.

Our opinion

On the stock Integrae SIM has a BUY recommendation, target € 2.65 (upside potential +265%).
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