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Star Group weather derivative pays out again on warm 2023 winter

US energy company Star Group (formerly Star Gas Partners) has benefitted from its weather derivative arrangements again in the first-quarter of 2023, recording a full recovery under the terms of the degree day contract it has in place.

Star Group has been utilising weather derivatives to hedge risk for well over a decade, benefiting from the arrangements at times when US weather conditions in the regions it operates were at levels that trigger the parametric derivative contracts.

In the first-quarter of 2023, Star Group said it experienced the “impact of extremely warm weather” across its operations.


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