on October 21, 2023
As usual, details are scant. As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group[16] and Electrabel in London. In a move borrowed from the playbooks of western rivals, state-run oil firm PetroChina has set up a Houston oil trading desk and leased massive oil storage tanks in the Caribbean. Scale is going to be more important than ever.. The companys early forays into trading gas and oil left it with a black eye. Mercuria Closes Acquisition of J.P. Morgan Chase Physical Commodities People forget about it. The winner? Olympique Marseille is at a crossroads, she told supporters in a statement to announce the changes at the club. Independent traders including Mercuria are filling the void. Wall Street heavyweight JP Morgan is advising Noble on the planned listing. Mercuria | LinkedIn The futures market may take some of that information and run with it. Work Permit Application Outcome. It announced in early October that it may float its storage subsidiary Puma Energy within 18 months. In its early days it profited by opening a trade route shipping Russian crude to China from Gdansk, Poland. In metals, stock in warehouses can be tied up for years as loan collateral, allowing the same traders who dominate the metals market to control a huge chunk of world supply -- an apparent conflict of interest that has drawn criticism from the UK parliament. With more trading companies trying to gain an edge by owning businesses that produce, store or process commodities, Mercuria followed suit. Mabanaft sold 20 million tonnes of oil in 2010, up from 18 million tonnes in 2009. Revenues for the 10 largest investment-bank commodity businesses fell to $4.5 billion in 2013 from $14 billion in 2008, according to London-based analytics company Coalition. When spot and futures prices began to converge, Koch would quietly slip crude from the ships into its onshore pipelines. The Kochs have denied funding the Tea Party, but their empires far-reaching tentacles in the political arena have spawned a nickname: the Kochtopus. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Mercuria, named for the Roman god of trade, is targeting a JPMorgan business that includes energy trading and storage assets in North America, where a boom in shale oil and natural gas has transformed the flow of commodities worldwide. That would put them well below the 16 percent stake Glencore CEO Ivan Glasenberg owns in his firm. In addition to proprietary trading curbs, the U.S. regulator voted on October 19 to impose position limits in oil and metals markets. The government of Ivory Coast said 16 people died. That gives banks who trade futures cause for concern, but since physical players usually receive exemptions to limits -- because they are categorized as bona fide hedgers -- trading firms should go unscathed. An array of storage tanks on five continents oils the wheels of its vast trading operation and it has stepped into the gap left by the oil majors as they reduce their downstream presence to focus on upstream exploration and production. The award-winning provider of Commodity Management solutions worldwide. Insight Conversation: Marco Dunand, Mercuria - S&P Global In some cases it makes up 60-80 percent of what they do, said Carl Holland, a former price risk manager at oil major Chevron Texaco, who now runs energy consultancy Trading Solutions LLC in Connecticut. Owning businesses that produce, store, transport or process raw materials can provide an advantage in trading at a time when expanding populations have pushed global commodity demand to a record. To achieve this, it would be necessary to recruit the (Ukrainian) farmers to take an active role. Its one of the largest physical suppliers of metals including zinc, lead and nickel, and a leading grain exporter from Europe, the former Soviet Union and Australia. Tornqvist, a former BP trader and keen yachtsman, says he doesnt share the vision of Mark Rich, the father of contemporary trading, that political links are the most prized asset in trading. Enuit Hiring, Growing, and Focused on Next Version, Energy One Sees Early Success in 24 by 7 Services Market. The privately owned company recorded net income of $425m in the six months to June, up more than $100m from the same period last year, according to people briefed on unaudited figures revealed. Standard Digital includes access to a wealth of global news, analysis and expert opinion. In the palm oil business, for example, it owns plantations, mills, refiners, shippers, bottlers and the distribution network, in both the top producers, Indonesia and Malaysia, and the top consumers, India and China. Louis Dreyfus is a well-honed global operator, marketing agricultural commodities from wheat to orange juice. Brent crude rose 3.5 percent that year in a fourth annual advance. In a settlement, Trafigura agreed to pay a $5 million fine, but wasnt charged with smuggling and denied wrongdoing. In London, Trafigura reached a pre-trial settlement to put an end to a class-action suit from some 31,000 residents. "When we founded Mercuria 10 years ago . Elman, the companys chairman, holds around 30 percent of the company. Van der Velden took the reins of a company on a roll. With Kochs easy access to tankers and pipelines, the strategy locked in profits of up to $10 a barrel with virtually no risk, traders said. Thanks to a market condition known as contango -- a period when buyers pay more for future delivery than to receive their cargoes promptly -- they could sell futures and lock in profits of $10 a barrel or more. Mercuria investit 500 millions de dollars dans Silvania, une plateforme qui financera des projets de capture de CO2 par la nature," Marco Dunand, Fondateur Directeur de Mercuria. In public, for a company that turned over almost $200 billion last year trading 5.5 million barrels a day, its profile is nigh on subterranean. But in May the U.S. Commodity Futures Trading Commission sued Arcadia and Parnon, both owned by a Norwegian shipping billionaire, for allegedly manipulating U.S. oil prices three years ago, amassing millions of barrels they had no intention of using. In a May interview with Reuters, Fredriksen refuted the charges and shot back that maybe they (U.S. regulators) are trying to get some revenge for the 2010 BP oil spill in the Gulf of Mexico. His partners seized control of the firm in 1994, renaming it Glencore. or cookies Mercuria earnings rise after JPMorgan unit swallowed Arcadia often trades large volumes of oil from Nigeria and Yemen, where it boasts close relationships with state oil firms. With a personal fortune estimated by Forbes at $10.7 billion, the 67-year-old was Norways richest man until he abandoned his citizenship in 2006 to become a national of Cyprus, where tax rates are lower. Switzerland-based Glencore, whose initial public offering (IPO) in May put trading houses in the spotlight, pays some traders yearly bonuses in the tens of millions. Vitol was founded in 1966; Glencore in 1974; Trafigura started in 1993; and Gunvor, the fifth-largest independent trader controlled by billionaires Torbjorn Tornqvist and Gennady Timchenko, was founded in 2000. It slipped 0.3 percent in 2013 and is down 2.6 percent this year at about $108 a barrel. Arcadias chief executive in Singapore, Stephen Gibbons, denied the contents of the cable and told Reuters the kidnapping allegations were ludicrous. Tornqvist says Gunvors goal is to become a truly global company. Headquartered in Geneva, Switzerland, and named after Mercury, the god of merchants, Mercurias business straddles global energy markets. Mercuria CEO eyes renewable energy for Bitcoin miners, rise of 'green A master of physical markets, it owns a 4,000-mile U.S. pipeline network and three of the countrys most profitable refineries. Noble quit its global liquefied petroleum gas (LPG) operations in 2010, a year it was censured in Nigeria for discrepancies in gasoline shipping lists. Together, Glencore employees, including many of its top traders, own just under 80 percent of the company. It focused initially on shipping fuel oil cargoes to the mainland, a relationship that has since deepened. Thats still a lot less than the billions the biggest independent oil traders make and a long way off the revenue of Marquard & Bahls oil tanking division, the second largest in the world after Vopak. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for 65 per month. Vitol says it is happy with its private status and has no IPO plans. Koch said its 90s-era pipeline blast was the only event of its kind in the companys history, and that a report to Texas regulators was voluntarily submitted by the company in 1995 to reflect higher emissions than it had originally reported. Margarita Louis-Dreyfus told Les Echos that a listing, merger or the entry of a private investor were all options. GENEVA, 3 October 2014 -- Mercuria Energy Group, Ltd ("Mercuria") announced today it has successfully completed the acquisition of J.P. Morgan Chase & Co. ("J.P. Morgan") Physical Commodities Business, following the signing of a definitive Purchase and Sale Agreement in March of 2014. Having said that, we have also been approached by potential investors -- sovereign funds and others -- who wish to make a private-equity type of investment in our company.. What matters is that the group and its name survive, she said. Former Koch employees were implicated in improper payments to secure contracts in six foreign countries between 2002 and 2008, and the companys officers admitted in a letter made public by a French court last year that those activities constitute violations of criminal law, according to a report in Bloomberg Markets Magazine this month. The 2022 report is the fifth annual CSR report prepared by Mercuria and the data and commentary refer to our activities in the 2022 calendar year. At times Cargills power has got it into trouble. Tea Party movement. In the two years since Margarita Louis-Dreyfus inherited control of the worlds top cotton and rice trader following the death of her husband Robert, the woman the French press call the tsarina has been at the center of one of the most intriguing struggles in corporate Europe. offers FT membership to read for free. See Marco Dunand's compensation, career history, education, & memberships. In two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. A row over oil export control could jeopardize its role in selling the nations crude. We also believe that nature is going to have to play its role in the transition, because when the world talks about net zero, it doesn't mean absolute zero. Two examples: it makes biodegradable and recyclable plastics out of corn at its $1 billion complex at Blair, Nebraska, and is creating new low-calorie food ingredients for such multinationals as Kraft, Nestle and Coca Cola. Cargill has since placed a moratorium on buying soybeans from newly deforested land. It has grown into the worlds third-largest independent oil trader and second-largest industrial metals trader in less than 20 years, since it was set up in the early 1990s by Dauphin and fellow traders Eric de Turckheim and Graham Sharp. That took the headcount to 1,200 from about 10 in 2004. Which may be why Mabanaft wants to expand beyond its northern European heartland. With African investors Helios Investment it recently paid a billion dollars to buy Shells fuel marketing operation across 14 West African countries, keeping the Shell branding. Marco Dunand is Chief Executive Officer and co-founder of Mercuria Energy Group, one of the world's largest independent energy and commodities companies operating in more than 50 countries along the entire commodities value chain with a balanced combination of commodity flows and strategic assets. Though it began as a pure metals and oil trader, Glencore has bought a wealth of industrial assets since the late 1980s which now stretches from South American farmland to copper mines in Zambia. Wilmar is now the biggest soy player in China with a 20 percent market share, measured in processing capacity. Co-founder and Chief Executive Officer Marco Dunand, co-founder and President Daniel Jaeggi and Mercuria's global head of trading Magid Shenouda control the stake through a Guernsey-registered company called MDJ Oil Trading Ltd. ChemChina Stake Decatur, Illinois-based ADM is one of the worlds biggest commodities traders. Cargill and Louis Dreyfus are the large missing players in the commodity trading space.. The companys deal with Libyas rebels was a gamble. [21], In January 2016, Mercuria announced that ChemChina had bought a 12% stake in the company. In a 2009 State Department cable from Yemen, obtained by WikiLeaks and provided by a third party to Reuters, sources told U.S. diplomats that the company used intimidation tactics including kidnapping threats to buy Yemeni crude at below market prices. It is true that I, together with three other businessmen, sponsored a judo club where Mr Putin became honorary president, he wrote. Compared with other independent trading houses, Dunand and Jaeggi are high profile, speaking periodically to the press and giving regular interviews. Founded in 1988 by Japanese trading giant Mitsui Inc., it was sued in 2000 by independent US refiner Tosco for allegedly conspiring to jack up prices of European benchmark Brent oil by cornering part of the North Sea physical crude market. They go where the business is, said an industry insider who asked not to be named. But Mabanaft has also gradually opened offices in Singapore and the United States and, in the summer of 2010, a representative office in India. [8][9] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today. Mercuria Energy Trading has a total of 1001 employees. Arcadia doesnt make its revenues public. The company's gross profit on sales for the year was $1.86 billion. A management shake-up this year at Frances most popular football club, Olympique Marseille, offers more proof of Margarita Louis-Dreyfus determination to defend her husbands legacy and impose hard financial choices. Enuit is an Award-winning provider of ETRM / CTRM solutions worldwide. We know how to close the gap (with Vitol and Glencore) and we are actively catching up, Tornqvist said. With nearly $10 billion worth of cash and bank deposits on Wilmars balance sheet, Kuok is unlikely to stop his expansion drive there. (Additional reporting by Jean-Francois Rosnoblet), WHO: Bunge, founded 1818 by Johann Peter Gottlieb Bunge in Amsterdam. He is one of Russias most private tycoons. Mercuria Energy Group Ltd is a Cypriot-domiciled French[1] multinational commodity trading company active in a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas (including LNG), power, biodiesel, base metals[2] and agricultural products. It helps that the firm usually has the backing of Washington. Thats the setting where we learned the trade, Dunand said in an interview with Swiss newspaper Neue Zuercher Zeitung published in January. That is as far as it goes -- yet time and again, the media wrongly jump to the conclusion that the judo club connection means that Mr Putin and I are close, then leap into conspiracy-theory mode.. Top trading houses speak at commodities conference | Reuters Mercuria CEO Marco Dunand, President Daniel Jaeggi and global head of trading Magid Shenouda are the firm's biggest shareholders. Founded in 1974 by Marc Rich, who fell foul of U.S. authorities but was later pardoned by President Bill Clinton, Glencore has assets spanning the globe and an oil division with more ships than Britains Royal Navy. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. By annual revenue Vitol is richer than Glencore but the numbers arent directly comparable -- Glencore owns more hard assets which, typically, are far more profitable than trade turnover. I never interfered with anything related to his business interests, I hope he will not stick his nose into my business either, Putin said. After Minnesota-based Cargill built a huge soybean terminal on the banks of the Amazon River in 2003, it was targeted by Greenpeace and subjected to Brazilian government injunctions for allegedly encouraging more farming in fragile rainforest. tracking emerging trends and opportunities in the future of energy. The top trading firms are price makers, said Chris Hinde, editor of London-based Mining Journal. Fredriksens traders then hurriedly sold the physical crude at a loss, the CFTC lawsuit claims, ending expectations for tight supplies. In 1937 the Chicago Board of Trade forced the company to sell its corn contracts and Secretary of Agriculture Henry Wallace accused it of trying to corner the U.S. corn market. Many small producers rely almost entirely on Koch to buy, sell and ship their crude. Trafigura took legal action to keep a report about the Ivory Coast incident out of newspapers, but details were eventually made public. Founded in 2004, Mercuria Energy Trading is one of the world's biggest independent energy traders . Mercuria specializes in trading and supplying physical commodities, investing in strategic assets, providing financing and logistics services and offering solutions to help clients meet their needs, including their net zero goals. The trading houses talent and deep pockets translate into incredible power. Critics, including the Russian opposition, put it simply -- Russias paramount leader helped businessman Gennady Timchenko create the Gunvor oil trading empire, which saw a spectacular rise in the past decade when Putin was president and then prime minister. Shenouda, who joined Mercuria in 2014, had for years been seen as the likely successor to co-founders Marco Dunand and Daniel Jaeggi. Commodity trading is fraught with various types of risk. Hin Leong made its name in the hard-fought Asia fuel oil and distillates market over 20 years ago, and is arguably the largest independent distillates trader in Asia, regularly mounting successful trading plays in the Singapore market. The grains business accounts for a third of its earnings and could have a value of more than $5 billion. WHO: Noble Group, founded 1986 by UK scrap metal man Richard Elman. Benoit Lioud, a Mercuria spokesman, declined to comment on talks with JPMorgan. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. [11], Its subsidiaries include Navitas Energy in Canada[12] and Vesta Terminal Services in Europe,[13] which operates port logistics, storage and processing facilities in the Netherlands, Estonia, Belgium, and Germany. A small Minnesota linseed crushing business more than a century ago, the firm is now is so big its financial performance is often viewed as a barometer of agribusiness as a whole. But Cargill is anything but public. In 2006 Kuok, now 62, orchestrated a $4.3 billion merger which consolidated his uncles palm oil assets into Wilmar, making it the worlds largest listed palm oil firm. With global sales of $108 billion in 2010, Cargill would have ranked No. Hin Leong is joining hands with several Chinese firms to build the proposed Singapore refinery, even as it seeks to build a larger oil storage facility in the South Chinese province of Fujian. It doesnt always work. Founded in 2004 by Swiss traders Marco Dunand and Daniel Jaeggi. Verghese still plans to cash in. A fleet of tankers and Asias largest commercial storage facility are among the companys assets. While its savvy traders were doing deals in eastern Libya, Vitol, along with rival Trafigura, kept refined product supplies flowing to the besieged government of Bashar al-Assad in Syria as his troops attacked civilians. The talks with JPMorgan forced Mercuria to put another deal on hold. They point to very competitive pricing offered by Gunvor when it comes to Russian oil tenders. Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. A Trafigura-chartered tanker was intercepted in the Caribbean in 2001 on suspicion of carrying illegal volumes of Iraqi crude. In his only media interview, with Reuters in 2006, Lim credited his success to investment in his tanker armada -- the secret weapon that helped him set up stealthy and profitable deals in the 1990s -- and his philosophy of perseverance. Big trading firms now own a growing number of the mines that produce many of our commodities, the ships and pipelines that carry them, and the warehouses, silos and ports where they are stored. [14], Mercuria is active players in energy and renewable markets through investments in the energy transition, with a particular focus on the United States and Europe. FIS adds Energy & Commodities to new Value Portfolio business unit for more focus. For Gunvors rivals, too, favoritism is also an overly simple explanation of the companys success. With 800,000 barrels a day to market, a volume similar to OPEC country Qatar, Arcadias annual gross revenue from oil could be around $29 billion based on current prices. Energy trader Mercuria sees turn in oil market | Financial Times A Swiss oil trader, his cowgirl daughter and the rodeo art of 'cutting A deal with JPMorgan would further challenge Dunand and Jaeggi, who each own 15 percent of Mercurias equity, to integrate the operations into a company that is already growing rapidly. We have a daily sales report from every corner where we operate and if we see sales slowing over a few weeks, we get to know the changing trend before others, one employee said, on condition of anonymity. Mercurias corporate strategy and culture have reflected the professional paths of its founders, who spent the bulk of their early careers at investment banks. Their move to run their own empire came in 2004 when they founded Mercuria, raising capital from two Polish businessmen, Grzegorz Jankielewicz and Slawomir Smolokowski. Theyve remained successful for decades, he said. Youve always had grain going down the river and going through the Gulf and being exported. [10], Mercuria moves about 1.5million barrels per day (240,000m3/d), of crude and oil products and has upstream and downstream assets ranging from oil reserves in Argentina, Canada and the United States, to oil and products terminals in Europe and China, as well as substantial investment in the bio fuels plants in Germany and the Netherlands. WHO: Vitol, founded 1966 in Rotterdam by Henk Vietor and Jacques Detiger, WHERE: Geneva and Rotterdam WHAT: Oil, gas, power, coal, industrial metals, sugar, TURNOVER: $195 billion (2010) CEO: Ian Taylor STAFF: 2,700. For cost savings, you can change your plan at any time online in the Settings & Account section. There is no rush, the company has been private for 150 years so there is no specific timing for changing the shareholding structure, one source close to the company said. [7] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski. Banks including JPMorgan and Morgan Stanley (MS) are exiting or reducing their commodities businesses as regulators crack down on risk. He was later pardoned. Its early dealings with the Libyan rebels may offer the chance of a foothold in Libyas oil and gas territory. WHO: Hin Leong, founded 1963 supplying diesel to fishing boats. No suggestions of wrong-doing were leveled against Dunand or Jaeggi. The unit has generated $750 million in annual operating profit before compensation costs, according to people who have seen documents circulated in relation to the sale. Dunand, chairman and chief executive, and Jaeggi, head of global trading, used Mercuria to expand their trading base from crude and oil products. The thinking is, why open the books to the world? said a former lobbyist for Koch who requested anonymity. Several of Fredriksens traders worked for BP in the early 2000s, where aggressive oil trading at Cushing turned huge profits, and also led to BP paying fines for alleged trading violations. That strategy has often succeeded, though last month it found itself at the center of a dispute in the newly minted nation of South Sudan. Trading houses saw the opportunity to leverage metals warehousing after the 2008 financial crisis. Lims Chinese connections have played a big part in the companys success. Timchenko doesnt need to be told to keep a low profile. This gives them a strong opportunity for growth and puts them close to the top players in the league, said Roland Rechtsteiner, a partner at management consultant Oliver Wyman, whos published a series of reports on the industry written with Trafigura co-founder Graham Sharp. ADM was fined $100 million by the U.S. government for antitrust violations. Investors say he might already have his sights set on Brazil, to strengthen his position in the global sugar market. It hasnt been determined whether Blythe Masters, who has led the JPMorgan unit since 2006 and orchestrated the buying spree, would join Mercuria, a senior executive at Mercuria said. It is also the worlds second largest trader of rice after Louis Dreyfus. Koch benefits from privacy, and its astonishingly agile and profitable as is., The old guard now faces a challenge from a new breed of Asian competitors. Its a message that could apply just as well to the Louis Dreyfus group. A few traders seized the chance to buy what amounted to almost all the available supply. See here for a complete list of exchanges and delays. The three former Goldman Sachs Group Inc. executives together own a controlling stake in Mercuria through a Guernsey entity called MDJ Oil Trading Ltd. He spent time trading metal in Hong Kong before moving to New York and a stint at commodities trading giant Phibro. We dont hear much about them yet, but in time we will.. It has trading offices in China, palm plantations and chemical plants across Asia, and silos in Brazil. The firm is now the worlds largest shipper of Robusta coffee and counts Nestle, Hershey, General Mills and Sara Lee as clients. Unsuccessful talks have taken place with Singaporean commodities group Olam International Ltd, while bankers say they have been sounded out about a stock market listing. What matters is results, and you can see that in the way they trade.. Glencores flotation has sparked speculation about a possible Vitol initial public offering and what it would be worth. They are buying and selling oil. In less than a decade, Marco Dunand and Daniel Jaeggi have turned a 10-person company supplying oil to a pair of Polish refineries into the worlds fourth-largest commodity trader with revenue topping $100 billion last year. But there are people like David Bowie or Paul Weller who sense that the market is moving and change with it. Belgium-born Rich sold his stake in 1994. In 2011 the company will turn over $80 billion, up from just $5 billion in 2004. Mercuria Energy Trading Culture | Comparably The very public power struggle was all the more remarkable because the company normally keeps everything, from its precise earnings to the exact age of its main shareholder and chairwoman, a secret. [18] The Miami, Florida-based MGM International Group is a developer of international projects to reduce greenhouse gas emissions. We havent seen this pace of population growth in our living memory, Verghese told a conference in Singapore late last year.
Santa Fe County Jail Mugshots,
Hebron Marching Band 2021 Music,
Websites That Pay For Viewing Ads In Nigeria,
6 Features Of Constructive Feedback In Teaching,
Lavender Team Midwives Watford,
Articles M