WHITE PAPER
Assessing Credit Risk
in Today's Post-Crisis
World
download

WHITE PAPER
A Practical Approach
to Risk Management

download

WHITE PAPER
Utilizing Technology to
Improve Trading Profit-
ability and Reduce Risks
download

Press Releases

	Preem AB Selects Allegro Energy Trading and Risk Management Solution

	Allegro Expands ETRM Functionality for Global Power Markets

	Allegro Announces Enhanced Functionality for Natural Gas Trading & Logistics

	SUEK AG Selects Allegro Energy Trading and Risk Management System

Upcoming Events

Customer Summit
September 13-15, 2010
Dallas, Texas
Energy Risk Asia
September 27-28, 2010
Singapore
Platts 4th Annual European Refining Markets
September 27-28, 2010
Brussels, Belgium

Supporting Material

Market Brief 512Kb

Case Study

A global refining and marketing company faced several business challenges, including the procurement of commodities and feedstocks, which represents a significant cost of doing business. The company needed a trading, transaction and risk management system to manage its highly complex operations, including global transportation of raw material and risk management strategies.

They required decision support tools that could provide a wide range of valuation analyses that integrated with all business processes, from deal capture to settlement. They also needed to more effectively manage transportation of raw materials on a worldwide basis.

Allegro solutions were implemented globally to manage the company’s trading, scheduling, risk management and accounting operations. Allegro allows the company to run sophisticated analytics on a complete portfolio and interface directly with their legacy applications.

As a result, the company now has the ability to maintain counterparty information, manage contract terms, schedule all physical commodities, actualizes volume, invoice counterparties, perform inventory valuation/tracking, and manage settlement of all commodity-based transactions. This refining and marketing company now benefits from a greatly enhanced view of the overall risk management of their enterprise, on both the financial and physical aspects of their feedstocks and refined products.

Petroleum R&M ETRM Solutions

Allegro ETRM Solutions for Petroleum Refiners, petrochemical producers, pipelines and fuel distributors face a variety of specialized challenges in purchasing, sales, forecasting, optimization, quality assurance, production/transaction accounting, auditing and regulatory compliance. Allegro Refining and Marketing solutions manage transactions, inventories, fractionation, re-branding and run ticket capture. They also support forecast production and calculate volumes and profitability across multiple feedstocks and products.

Allegro’s comprehensive solutions provide uniquely valuable tools across the refining and energy marketing business processes.

Allegro’s processing components include Fractionation, which manages scheduling, conversion of componentized products into purity products and the actualization of the volumes for any products that are being processed. Additionally, it associates fees with the processes to account for any payable or receivable activity.
Allegro optimizes feedstock supply to production requirements by forecasting production and input volumes. Allegro components automatically calculate values and spreads, and track feedstock/product inventories and sales.
Allegro’s extensive Physical Logistics components support tracking and valuation of fuel and inventories, volume calculations, and tracking of sales and distribution. Allegro also supports distribution by rail, truck, pipeline, barge or ship.

Optimal Software Components for Petroleum Refining & Marketing

Trade Execution - Provides tools to efficiently capture and confirm physical and financial trades for commodities.
Trade Strategy - Provides the ability to define trading strategies, which can be made up of existing positions and hypothetical positions, to allow for analysis of different trading scenarios while setting operational goals and limits.

Positions 8.0 - Provides comprehensive risk position reporting and viewing capabilities. This component allows reporting on Mark to Market, exposure, limit management, and profit and loss across the entire portfolio.
Optimization 8.0 - Calculates the incremental valuation of all possible dispositions of long and short commodity positions, based on market prices, transportation, storage, and processing information.
Simulation - Provides a set of tools to help analyze the impact to exposure and profit and loss resulting from movements in the market.
Credit 8.1 - Delivers advanced credit monitoring, analysis, scoring and rating, and overall counterparty credit management to accurately measure current and future exposure along with using robust credit risk models to accurately rate counterparty credit scores in a timely manner.

Pipeline 8.1 - Manages scheduling, nomination, transportation and actualization for commodities transported via pipeline, including NGLs, crude oil and refined products. Provides the ability to create and store pre-defined pipeline routes and plans with associated information such as product, carrier, and origin and destination locations, along with the ability to automate the creation of shipments per the predefined plans.
Petroleum Blending 8.1 - Delivers comprehensive functionality for managing the blending of petroleum liquids including defining blending plans, developing run-out schedules and tank inventories, and providing the ability to blend heavy crude oil to lighter densities to meet pipeline carrier maximum density standards.
Vessel - Manages the scheduling, shipment and actualization of single or multiple commodities that are transported via vessel.
Barge - Manages the complexities of scheduling, shipment and actualization for any single or multiple commodities that are transported via barge.
Truck 8.0 - Manages scheduling, nomination, transportation and actualization activities for commodities shipped via truck.
Rail 8.0 - Manages scheduling, nomination, transportation and actualization activities for commodities shipped via rail, including liquid natural gas (LNG), coal, natural gas liquids (NGLs), crude oil and refined products.
Fractionation - Manages the scheduling, conversion of componentized products into purity products, and the actualization of the volumes for any products that are being processed.

Contracts 8.0 - Captures and manages all contract information across the enterprise and through the entire contract management life-cycle.
Settlement 8.0 - Provides the tools that settle and feed data to invoice physical, financial and other transactions associated with commodity transactions and logistical movements.
Net Valuation 8.0 - Enables the valuation of inventory along with the ability to complete net forward, net back, and profit margin calculations across commodities, including commodity value, transactional, and transportation costs.
Price 8.0 - Provides flexible tools to capture, create, and access pricing data and forward curves for all commodities, including coal, natural gas, electric power, crude, refined products and natural gas liquids (NGLs).
Currency 8.0 - Provides the solution to enable management of multiple currencies including the ability to capture currency exchange rates and currency trading.
Hedge 8.1 - Assists with hedge accounting and fair value disclosure requirements by providing robust tools for analysis and reporting such as Financial Instrument Management, Currency Management, Interest Rate Management, Fair Value Management, Fair Value Option Management and Disclosure Management.
Emissions 8.1 - A dedicated component providing efficient, and manageable yet comprehensive capability to accommodate trade activity for either renewable energy credits or emissions certificates. This functionality is unique to the market, in that it not only supports current market conditions but allows customers to be ahead of the curve as mandates by various global requirements change.

Workflow - Alert-based workflow engine that automates business processes through task and approval tools and automated control management, as well as having the ability to seamlessly integrate with third-party software and database systems.
Price Connect 8.1 - Provides a standard interface to market prices from different data providers. This is a one way import of data from the market provider to Allegro to be used for pricing data.
Exchange Connect - Provides a standard interface to electronic trading exchanges to allow the submission and receipt of bid and offer data while allowing for execution and confirmation of transactions through the exchange. The interface is bilateral allowing for straight through processing of transactions from and to the exchange directly from the Allegro environment.
NETA Connect 8.0 - Allows market participants to interface with the NETA market system. The interface is bilateral allowing both submission and retrieval of volume, transaction status , forward positions and periodic reports.

Industries

Optimal Software Components for Petroleum Refining & Marketing