RE:RE:RE:Q3 report and Shareholders deficit is shrinkingGaillardDeshaie wrote: Also, the other line: Unrealized loss or gain of derivative instruments and other...I don't have a clue of what it is? Gaillard
They buy derivative instruments contracts to cover their contracts. So, the future value of the derivative instruments changes when energy costs go up or down.
When the derivative instrument settles, then if the energy price is higher than the contract value, they get paid, and if the energy price is lower than the contract value, they pay out.
The thing is that since it covers their own contracts with their clients, in general, the money they get paid covers the higher price they'll have to pay for the energy to supply their clients at the fixed price agreed upon. So, while it may show as a "gain", in the end they won't make a ton of money because their acquisition costs will also be higher and eat a good portion of that gain when it is realized.