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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