SANIA Power delivers strong results thanks to our dedicated employees and a keen focus on value creation. The Company keeps a strict focus on its strategy. We detect market inefficiencies in time and move energy from where there is more than needed to where it is needed most. SANIA Power concentrates on its core expertise in short-term physical power and gas trading and related services. We continue to optimise our operating model, improving scalability and maintaining a stable cost base. (Scalability is the measure of how well the organisation responds to changes by adding or removing resources and assets to meet demands.)
SANIA POWER DELIVERS PROFIT IN THE YEARS WITH UNPRECEDENTED MARKET VOLATILITY.
Extreme weather events, a faster-than-expected economic bounce-back from Covid-19 combined with low gas storage levels, and last but not least, the Russian invasion of Ukraine resulted in historically high energy prices, unprecedented price volatility, and supply problems which create both advantageous opportunities and challenges for energy market participants.
A NUMBER OF FACTORS CONTRIBUTED TO THE SURGE IN PRICES
World economies recovered faster than expected from Covid-19 lockdowns in the beginning of the year 2021, and a cold and long winter stretched all the way into April 2021, creating a higher demand for energy. At the same time, we saw significantly lower gas storage levels than last year, unplanned outages, low wind production in September 2021, political unrest, and underperforming natural gas deliveries from Russia.
In 2022, the Russian invasion of Ukraine redefines global natural gas markets. It has exacerbated the tightening supply of natural gas underway since mid- 2021, further pushing up consumer prices and leading to fuel switching and demand destruction. It also casts longer-term uncertainty on market prospects for natural gas. Natural gas demand is expected to decline in 2022 and remain subdued up to 2025. Europe’s surging pursuit of LNG to phase out Russian pipeline supply and limited global LNG export capacity additions raise the risk of prolonged tight markets.