Antonio, 56, manages three 10 MW solar facilities. As often happens, he starts the day with a meeting: “Good morning, Antonio, please have a seat.” This is how he is greeted by Pablo and Jaime, the company’s CEO and CFO respectively. They want to see Antonio to talk about a new strategy he has proposed.
Based on recorded spot prices for the month of February 2017, Antonio has decided to hedge for the rest of the year using a participation swap that will allow him a guaranteed minimum price of production, in exchange for a percentage of the potential rise in prices that Antonio foresees for the market.
“Antonio, you've been with us for many years and we all trust your professional credentials,“ Pablo starts. “But we've never used hedging and we just don't know what it might involve.” Jaime goes on, “To evaluate your proposal we need to be able to take a closer look at it with the assistance of somebody who can help us to understand the question. Without this kind of support we can’t really consider your solution.” Antonio weighs things up carefully and realises that he alone will not be able to convince Pablo and Jaime, so he asks for help from the Enel Global Trading Team, who immediately provide him with assistance. The GTT team of experts see they’re dealing with a very sensitive situation: they need to study the company and its high-level executives in order to help Antonio to obtain his complex goal.
After four weeks of intensive work, the Global Trading Team manages to convince Pablo and Jaime to develop the strategy that is best suited to the company: hedging using a participation swap / profit sharing.