CEO on fuel prices
In our current financial plan, we've anticipated the cost of one liter of unleaded petrol to not exceed zł.3.95. We adjust our plan on an ongoing basis.
Prices of fuel directly influence our level of profitability. We accomplish our services using a fleet that includes thousands of vehicles and airplanes. In the case of significant fluctuation in fuel prices, the effect on our margins can be quite substantial. In these circumstances, financing growth with the current margin is not always possible. Sometimes it should be rendered at the level of our service prices.
Paul L. Craig, president, Trading Bay Energy Corporation
As an Alaskan involved in the identification and exploitation of oil and gas prospects, higher oil prices are music to my ears. In today's marketplace, with turmoil in the Middle East and soaring oil and gas prices, companies have begun knocking on my door, looking for the type of opportunities available within Trading Bay's portfolio of prospects. In addition to involvement in the Alaskan oil patch, I have invested heavily in FX Energy, a publicly-traded exploration and production company that has all the ingredients for creating wealth for shareholders during the next three to five years through the discovery and production of hydrocarbons in Poland. They are properly capitalized to move forward with a program of exploratory drilling at multiple prospective sites.
At a self-serving level, as the owner of a nascent oil and gas company, I am delighted with higher hydrocarbon prices. As a world citizen, I am aware that stability and predictability with regard to cost of the 'blood' of capitalism is important to keep the heart of the world economy beating in the best interests of one and all.
Leszek Chorzewski, LOT Polish Airlines spokesperson:
Purchases of fuel constitute a significant proportion of our company's total costs (around 15 percent), hence we closely monitor and analyze market trends, both on a day-to-day basis and in the longer term - a maximum of two years - in both monthly and quarterly cycles. Such attention to detail results from the seasonal nature of the airline business (fuel consumption in the summer can be higher by as much as 50 percent), which in turn makes it necessary to plan correctly for future liabilities connected to fuel purchases. Thanks to hedging against future price rises through the use of derivative financial instruments, we have managed to lower costs of fuel in the first four months of the year by an average zł.100.9 ($26) per tonne. Our hedging policy is clearly set out in the company's strategy. Due to the long-term nature of the hedging strategy, the company is still benefiting substantially from transactions closed a long time ago.
Prices of fuel directly influence our level of profitability. We accomplish our services using a fleet that includes thousands of vehicles and airplanes. In the case of significant fluctuation in fuel prices, the effect on our margins can be quite substantial. In these circumstances, financing growth with the current margin is not always possible. Sometimes it should be rendered at the level of our service prices.
Paul L. Craig, president, Trading Bay Energy Corporation
As an Alaskan involved in the identification and exploitation of oil and gas prospects, higher oil prices are music to my ears. In today's marketplace, with turmoil in the Middle East and soaring oil and gas prices, companies have begun knocking on my door, looking for the type of opportunities available within Trading Bay's portfolio of prospects. In addition to involvement in the Alaskan oil patch, I have invested heavily in FX Energy, a publicly-traded exploration and production company that has all the ingredients for creating wealth for shareholders during the next three to five years through the discovery and production of hydrocarbons in Poland. They are properly capitalized to move forward with a program of exploratory drilling at multiple prospective sites.
At a self-serving level, as the owner of a nascent oil and gas company, I am delighted with higher hydrocarbon prices. As a world citizen, I am aware that stability and predictability with regard to cost of the 'blood' of capitalism is important to keep the heart of the world economy beating in the best interests of one and all.
Leszek Chorzewski, LOT Polish Airlines spokesperson:
Purchases of fuel constitute a significant proportion of our company's total costs (around 15 percent), hence we closely monitor and analyze market trends, both on a day-to-day basis and in the longer term - a maximum of two years - in both monthly and quarterly cycles. Such attention to detail results from the seasonal nature of the airline business (fuel consumption in the summer can be higher by as much as 50 percent), which in turn makes it necessary to plan correctly for future liabilities connected to fuel purchases. Thanks to hedging against future price rises through the use of derivative financial instruments, we have managed to lower costs of fuel in the first four months of the year by an average zł.100.9 ($26) per tonne. Our hedging policy is clearly set out in the company's strategy. Due to the long-term nature of the hedging strategy, the company is still benefiting substantially from transactions closed a long time ago.
