10 Dec 2015 07:00
10 December 2015
Rotala plc
("Rotala" or "the Company" or "the Group")
Fuel Hedging
Rotala is pleased to announce the following update on the diesel fuel requirements of the group and the extent to which they are hedged.
The board has a stated policy of hedging the fuel requirements of the group as far forward as possible in order not to be subject to the risks and uncertainties of fuel market fluctuations. Currently the annual fuel requirement of the group is about 11 million litres. For the year ended 30 November 2015 the average cost of fuel to the group was about 108p a litre.
Taking advantage of the recent weakness of oil prices, the board has further extended the coverage of the group's fuel hedges in 2018. The coverage of the group's fuel hedges over the next three years now therefore stands as follows:
· For 2016 the Company has in place hedges against about 89% of its fuel requirement for the year at an average price of about 101p a litre;
· For 2017 the Company has in place hedges against about 84% of its fuel requirement for the year at an average price of about 95p a litre;
· For 2018 the Company has in place hedges against about 89% of its fuel requirement for the year at an average price of about 91p a litre.
The board will continue to monitor market conditions closely and take out such further fuel hedges as it deems are appropriate to meet its objective of reducing volatility and creating business certainty.
For further information please contact:
Rotala Plc | |
John Gunn, Chairman | 020 7602 7500 |
Simon Dunn, Chief Executive | 07825 808 525 |
Kim Taylor, Group Finance Director | 07825 808 529 |
Numis Securities Limited | 020 7260 1000 |
David Poutney (Corporate Broker); Richard Thomas (Nominated Adviser) |