LITASCO SA

Support functions

Operations

LITASCO Operations executes all crude and product trading agreements through a global network of commercially focused operators. 　

Operating teams are organized with a reporting line to the CEO independent of Trading.　　

They are based in our main trading hubs, Geneva, Rotterdam and Houston

Operators are pivotal to the LITASCO execution process. Operators manage the negotiated commercial agreements of physical hydrocarbons, are in charge of the operations on vessels, rail, barge and in terminals, while acting as a control on financial security, safety of operations, legal and tax issues, by consulting with the expert departments in the company.　

Operations ensure seamless deal execution, around the clock engagement with customers, service providers and trading teams.

Additional value is generated from blend and logistical optimisation, minimising costs and risks within the contractual boundaries and along the existing storage agreements.

Global Risk Management

LITASCO's global approach to risk and risk assessment is a priority in order to successfully conduct its business. The company rigorously manages risks in the fields of trading, operations & logistics, geopolitics, finance, IT systems and HR, amongst others, in compliance with relevant regulations.

The company is subject to the Swiss Federal regulation regarding the existence and functioning of Internal Control Systems.

LITASCO's compliance with this regulation is certified by external auditors.

In the range of existing and perceived risks, particular attention is devoted to the management of price risk and credit risk.

Price Risk Management

LITASCO is exposed to market price risk; as such risk-taking is inherent to the nature of the oil trading business.

LITASCO's risk management policies aim to systematically maintain price risk at acceptable levels by closely monitoring and managing trading activity.

Risk mitigation is pursued through carefully structuring physical deals and actively transferring risk to third parties.

Like most other trading companies, price risk transfer is achieved with hedging strategies. Those strategies allow us to manage exposure to price fluctuations by using exchange traded and over-the-counter energy financial derivatives.

LITASCO has a full scale risk management department performing daily controls and analysis regarding price risk identification and measurement. All of our dealings are subject to strict internal controls and trading limits. Risk mitigation is performed by the Trading Department.

Credit Risk Management

A strong Credit Risk Management policy is applied uniformly through the LITASCO Group.

The conservative nature of LITASCO Credit Risk philosophy is reflected by its strategy of careful and thorough risk management. Centralized in the main LITASCO office in Geneva and part of the Risk Management Department, the Credit Risk Management team is responsible for the analysis of counterparty risk and the establishment of acceptable risk levels.

The company's risk appetite is decided by the Credit Risk Management Committee comprised of LITASCO's top management. Through the monitoring of every transaction concluded across the LITASCO Group, specific attention is given to minimizing the credit risk exposure. Furthermore, world events are closely monitored and immediate action is taken to mitigate credit risk in the event of geopolitical instability.

Finally, the Credit Risk Management team works closely with our trading counterparts to negotiate open credit lines for LITASCO.

Treasury Management and Source of Funding

Treasury department’s main responsibilities are managing various financial risks and ensuring sufficient funding for the Company’s activities in the short and long term through optimization of internal and external financing.

The treasury centralizes financing and risk monitoring of the Group’s subsidiaries through four departments based in Geneva: Cash Operations, Trade and Structured Finance, Documentary Credit and Credit Control.

The Company uses various techniques and innovative instruments to mitigate its exposure to the diverse treasury and financial risks, which includes FX, operational, compliance and documentary risk.

In order to support its key business activities and strategical development opportunities, the Company uses flexible and cost-efficient funding solutions, which include intra-group financing, banks’ credit lines, structured finance as well as its own liquidity.

Systems and Reporting

LITASCO has invested to build and is running its own world leading ETRM (Energy Trading and Risk Management) system based on SAP and implemented in the LITASCO Group.

The ETRM provides functionality for front and middle offices, allowing to closely monitor trading positions as well as carrying out the real time risk management functions.

The ETRM system is fully integrated with back office, treasury and accounting processes and provides the means for the management and US GAAP reporting.

Shipping

EIGER SHIPPING SA, a wholly owned subsidiary of LITASCO is based in Geneva, Switzerland.

EIGER SHIPPING manages a global freight-trading footprint with activities in Houston and Rotterdam in addition to its Geneva headquarters.

Through vessel and cargo optimization, analytics and freight risk management, EIGER SHIPPING ensures safe and cost efficient freight for all of LITASCO SA Group's cargoes worldwide.
In addition to this, EIGER SHIPPING’s team of Freight Traders identifies inefficiency’s in the shipping market to deliver consistent freight trading profitability.
Our shipping staff works closely with LITASCO's SA trading teams securing the appropriate tonnage in order to meet trading requirements, including both the LITASCO SA Group and other major 3rd party market participants.　

EIGER SHIPPING fleet consists of foreign flagged, double hull vessels that can range in size from 5,000 DWT LPG carriers to 320'000 DWT VLCCs, with a dynamic scalability depending on the Groups needs and market expectations.

All vessels chartered to LITASCO Group by EIGER SHIPPING are subject to LUKOIL's vetting standards.

EIGER SHIPPING SA contact information

Support functions

Operations

Global Risk Management

Price Risk Management

Credit Risk Management

Treasury Management and Source of Funding

Systems and Reporting

Shipping

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