Risk Management

Risk management and quality assurance are embedded throughout Alkagesta’s sourcing, storage and delivery activities. As a global energy and commodity trading house, the Group applies structured governance, operational controls and risk management processes across the commodity trade lifecycle to support disciplined execution and business continuity.

Our framework is designed to identify, monitor, and mitigate risks arising from trading, logistics, financing, and operational activities. Through a combination of experienced management oversight, real-time monitoring systems and established control procedures, Alkagesta maintains a resilient and disciplined approach to risk management across global commodity markets.

Alkagesta’s risk management framework is built around three core principles: Identification, Monitoring and Mitigation.

Identification

The identification and classification of risks form the foundation of Alkagesta’s risk management framework.

Supported by experienced management, internal control systems and established governance processes, the Group continuously assesses and evaluates risks across its trading and operational activities.

Key risk categories include:

• Physical and Operational Risk
• Basis and Flat Price Risk
• Mark-to-Market (MtM) and Exposure Risk
• Compliance and Regulatory Risk
• Credit and Liquidity Risk
• Reputational Risk
• Environmental, Social and Governance (ESG) Risk

This structured approach ensures that risks are identified early, assessed consistently and managed across all stages of the commodity trade lifecycle.

Monitoring

Alkagesta utilizes a Commodity Trading and Risk Management (CTRM) platform to monitor trading activity, positions, exposures and operational performance in real time.

The platform provides continuous visibility across trading, logistics and financial activities, supporting informed decision-making and timely risk assessment.

Dedicated operational teams oversee sourcing, storage, transportation and delivery activities, while daily reporting on liquidity, inventory, receivables and payables supports effective management of credit and liquidity risk.

This integrated monitoring framework enables management to maintain oversight of risk exposures and ensure alignment with the Group’s risk management objectives.

Mitigation and Control

Alkagesta applies a comprehensive framework of controls, governance procedures and risk mitigation tools designed to support responsible and reliable trading operations.

These include:

• Pre-approval of transactions through credit, compliance and operational review processes
• Fundamental hedging strategies and back-to-back contract structures
• Value-at-Risk (VaR) limits and position controls
• Insurance coverage for cargoes and storage assets
• Daily inventory reconciliation and treasury reporting
• Defined approval authorities and governance procedures
• Compliance, sanctions and ESG screening across trading activities

The Group maintains a strict policy of zero tolerance towards flat price risk, supported by hedging strategies designed to minimize commodity price exposure and preserve disciplined risk management.

Alkagesta also utilizes industry-recognized intelligence, compliance and screening tools to support due diligence, sanctions compliance and operational oversight across global commodity markets.

By integrating governance, technology and risk discipline throughout the value chain, Alkagesta supports reliable execution, business continuity and long-term resilience across changing market conditions.