Case Study: European Gas Company protects profit margins from FX risk with Kantox Dynamic Hedging

How a European Gas company protects profit margins from FX risk

European Gas Company, a leading LPG wholesaler with €198M annual turnover, purchases gas internationally under semi-annual contracts and ad-hoc orders and faced significant FX exposure that threatened operating margins. The firm needed an automated way to hedge both forecasted and transactional currency risk and reduce the manual burden on treasury, so it engaged Kantox and its Kantox Dynamic Hedging® solution.

Kantox implemented an API-linked Dynamic Hedging® program combining micro‑hedging for firm commitments, static hedging with conditional orders, and real‑time exposure visibility, automating trade requests to liquidity providers. The Kantox solution achieved 99.7% hedging precision, delivered a 15% margin enhancement, removed key‑person risk, and allowed the company to protect profit margins while effectively hedging all cash‑flow FX transaction exposure.