Rotala has announced an update on the diesel fuel requirement of the group and the extent to which it is hedged.
The company’s board has a stated policy of hedging the fuel requirements of the group as far forward as possible in order not to be subject to the risks and uncertainties of fuel market fluctuations.
Currently, the annual fuel requirement of the group is about 11 million litres. For the year ending November 30, 2015, the average cost of fuel to the group was about 108p a litre.
For 2016, Rotala has in place hedges against about 89% of its fuel requirement for the year at an average price of about 101p a litre, while for 2017 the company has in place hedges against about 84% of its fuel requirement for the year at an average price of about 95p a litre.
The operator has also taken the opportunity to extend the coverage of its fuel hedges into 2018. For that year, about 43% of the fuel requirement has been hedged at an average price of 91p a litre.
The Rotala board said it will continue to monitor market conditions closely and take out such further fuel hedges as it deems are appropriate to meet its objective of reducing volatility and creating business certainty.