Business Maverick: Volkswagen Set for Multimillion-Euro Windfall on Gas Trade

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 84%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Volkswagen AG is set to receive hundreds of millions of euros in trading profits as it offloads a massive natural-gas hedge, selling large amounts of fuel it previously purchased back into the German market.

Europe’s largest car-maker has directed the sale of 2.6 terawatt-hours worth of gas contracts, according to a document seen by Bloomberg News. That’s enough gas to run about 200,000 normal, gas-heated homes for a year.

Gas prices are now trading many times higher than their levels when VW purchased the supply, due to an unprecedentedin Europe. Based on recent prices, VW could be set to receive around 400 million euros in profit, according to Bloomberg calculations. The company had planned to use the gas next year at its two power plants in Wolfsburg as part of a fuel switch away from coal. However, the price surge, combined with economic and political pressures to conserve the fuel, have led the VW to sell it and stick to coal for now, according to people familiar with the matter.

The advance purchases — known as hedges, to protect against price volatility — were bought through supplier Wingas GmbH on Trading Hub Europe as far back as 2020, when the market price was around 30 euros per megawatt-hour, one of the people said. Gas futures on the hub are now trading near 200 euros per megawatt-hour. The windfall from the sale is highly dependent on how the market price changes as the hedges are gradually sold off over several weeks.The trade is just one example of the impact of the crisis, as businesses across the continent face soaring costs.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

I'm really grateful for all the efforts you have render to me with my little investment of R4000 and with joy over me after withdrawing R50,000 with your help Catherine_nico thank you for everything you have done for me and my family Catherine_nico

As a mother of two kids I have battled alot with my financial state to the point of begging from friends just to survive, until I started Bitcoin trading with the help of Allison_Grillo I made a successful withdrawal of R 200,000 with the help of Allison_Grillo.

Nel 2013 ecc si parlava che voleva essere lui Re Sole ecc eletrico

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 3. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Business Maverick: Volkswagen Set for Multimillion-Euro Windfall on Gas TradeVolkswagen AG is set to receive hundreds of millions of euros in trading profits as it offloads a massive natural-gas hedge, selling large amounts of fuel it previously purchased back into the German market. Nel 2013 ecc si parlava che voleva essere lui Re Sole ecc eletrico As a mother of two kids I have battled alot with my financial state to the point of begging from friends just to survive, until I started Bitcoin trading with the help of Allison_Grillo I made a successful withdrawal of R 200,000 with the help of Allison_Grillo. I'm really grateful for all the efforts you have render to me with my little investment of R4000 and with joy over me after withdrawing R50,000 with your help Catherine_nico thank you for everything you have done for me and my family Catherine_nico
La source: dailymaverick - 🏆 3. / 84 Lire la suite »