October 2012: EnergyAustralia selects Lacima Analytics


EnergyAustralia selects Lacima Analytics to improve risk management and reporting using earnings and cash flow at risk metrics.

Sydney 8 October 2012 – EnergyAustralia, one of Australia’s largest integrated energy companies with a multi-billion dollar portfolio of coal, gas and wind generation and retail assets, has selected Lacima Analytics, the complete application for energy risk management, valuation and optimisation, to assist in measuring and reporting market risk across its portfolio of electricity, carbon, gas, renewables, coal and wind generation assets.

The organisation, which serves more than 2.7 million household and business customers, wishes to further evolve its market risk management analysis and reporting capability across the business.

Lacima Analytics was selected for its ability to calculate and report sophisticated cash flow and earnings based valuation and risk metrics within a completely auditable framework. EnergyAustralia will employ solutions from Lacima Analytics to analyse power generation assets using Monte Carlo based techniques, calculate earnings-at-risk across whole portfolios to assess the impact of hedging decisions, and utilise Lacima’s industry acclaimed models for greater accuracy in results.

Peter Eben, Acting General Manager Risk from EnergyAustralia said“Since 2010, EnergyAustralia has been undertaking a program to further enhance the robustness of its risk analytics function.  We were seeking third party alternatives to further evolve our internally developed earnings at risk solution. In seeking third party alternatives, Lacima was the stand out vendor - demonstrating the highest level of knowledge of the modelling issues in the Australian market.  The system can model cash flow and earnings based metrics for a portfolio of our complexity, and has the ability to deliver this in a single consistent application”

Dr Chris Strickland, Director of Lacima, remarked, “We are delighted to have EnergyAustralia on board as customer.  As a pre-eminant player in the Australian market, Lacima is proud to be chosen as the vendor who is able to provide a more robust, scalable and cross-portfolio solution at a competitive price when compared to both other vendors and internally developed options. We have long advocated that the simple value-at-risk metrics upon which many systems are based are inappropriate for robust decision making.  It is satisfying when a major player like EnergyAustralia specifically seeks a cash-flow and earnings based approach to support better business decisions and profitability.

About EnergyAustralia

EnergyAustralia is one of Australia's largest integrated energy companies, providing gas and electricity to approximately 2.7 million household and business customer accounts in the National Electricity Market.  With a multi-billion dollar portfolio of generation and retail assets, EnergyAustralia is one of the largest private energy businesses in Australia. EnergyAustralia owns and operates a 5613 megawatt (MW) portfolio of electricity generation facilities,

About Lacima

Lacima is a specialist provider of software and advisory services dedicated to valuation, optimisation and risk management for global energy markets. We help you to maximise your profit potential and make more informed decisions by providing tools that yield more accurate valuations, hedging analysis and risk exposure analysis for portfolios of financial contracts and physical assets.

Clients of our software and services include structuring, valuation and risk teams in vertically integrated energy companies, energy retailers, financial institutions and large energy consumers in Europe, North America and Australasia.

Our software solutions have been developed and implemented by peer-recognised experts in energy analytics, offering an unparalleled level of expertise and personalised support.

For further information, email info@lacimagroup.com.

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