For Gunvors rivals, too, favoritism is also an overly simple explanation of the companys success. They form an exclusive group, whose loosely regulated members are often based in such tax havens as Switzerland. In the wake of Glencores listing this year, there is interest in another big trading house going public; investors want exposure to long-term demand for commodities. 3. Over the last 145 years, Cargill has grown from a single grain storage warehouse by an Iowa railroad to a behemoth of world commodities trade, straddling dozens of markets for food and other essential materials -- salt, fertilizer, metals. We dont see the need to raise money from the market, Dunand said. Together, they are worth over a trillion dollars in annual revenue and control more than half the world's freely traded commodities. (Bloomberg) 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. Its website reveals little more than that it is the trading arm of privately owned oil company Marquard & Bahls. You can still enjoy your subscription until the end of your current billing period. 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. The CEO sometimes flies to speaking engagements with no entourage. Or this: Glencore in 2010 controlled 55 percent of the worlds traded zinc market, and 36 percent of that for copper. Mabanaft sold 20 million tonnes of oil in 2010, up from 18 million tonnes in 2009. We have a system that monitors the supply and demand needs, because often times they are working independently. Some analysts point to risk factors: Olams exposure to natural disasters, such as recent flooding in Australia, and social or political unrest such as that in Ivory Coast. One of the great things that Cargill did was develop the salt business to transport back up, eliminate the snow during the wintertime, and fill barges back up with back hauls, the wheat trader said. It bought UK-based metals warehouser and logistics firm NEMS in March 2010, a month after Goldman Sachs had acquired rival Metro and several months before Glencore and JP Morgan moved into the business. Commodity trading is fraught with various types of risk. You may change or cancel your subscription or trial at any time online. Mercuria traded 182 million metric tons of oil or oil equivalent in 2012, according to its website. Cargill and Louis Dreyfus are the large missing players in the commodity trading space.. In his first public interview to Reuters in 2007, Gunvors Swedish co-founder Tornbjorn Tornqvist was keen to stress that the firms success was built on its traders experience and excellent contacts. [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. It now has stakes in a coal mine in Indonesia, oil and gas fields in Argentina, oil storage in China and a biodiesel plant in Germany. The tsarina, or MLD, as the press sometimes also calls her. Two decades ago, Chinese farmers fed their pigs just about anything they could lay their hands on. Koch declined to discuss its trading with Reuters. Like rival Vitol, Trafigura has seized the opportunity to get into oil storage as oil majors focus on production. 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. Grain traders welcomed our offer to lend a diplomatic hand, the ambassador wrote. They are buying and selling oil. The godfather of oil trading, Marc Rich, taught one of his most talented apprentices Claude Dauphin almost every trick in the business. Trafigura took legal action to keep a report about the Ivory Coast incident out of newspapers, but details were eventually made public. It helps that the companys CEO Alberto Weisser is a Brazilian, and that Bunge has more than 100 years experience in South America. Trading houses have huge volumes of proprietary trading. Trafigura was also quick to recognize the potential of storage in the industrial metals markets. On the world oil markets the name Vitol is as familiar as Exxon is at the petrol pump. "Launching Silvania is consistent with Mercuria's purpose to connect markets and advance the energy transition and its ambition to help the world achieve Net Zero," said Marco Dunand, Mercuria's . They go where the business is, said an industry insider who asked not to be named. The thinking is, why open the books to the world? said a former lobbyist for Koch who requested anonymity. We know how to close the gap (with Vitol and Glencore) and we are actively catching up, Tornqvist said. The firm is now the worlds largest shipper of Robusta coffee and counts Nestle, Hershey, General Mills and Sara Lee as clients. Mercuria CEO Marco Dunand, President Daniel Jaeggi and global head of trading Magid Shenouda are the firm's biggest shareholders. Mabanafts profile is low even by the secretive standards of other independent oil traders. The business has grown to 890 employees in 28 countries with a turnover at $75 billion, trading almost 120 million tonnes of oil, coal and gas. Mercuria Energy Group, Ltd. Mercuria is a Geneva, Switzerland-based trading firm focused on energy products and dry bulk commodities. Of the six major metals warehousers only one, Dutch-based C.Steinweg, remains independent. [6] The company focused mostly on oil trading until 2007. The grains business accounts for a third of its earnings and could have a value of more than $5 billion.
Behind the $100 Billion Commodity Empire That Few Know Perhaps to make up for that, it has moved into new sectors such as natural gas, coal and emissions. [5], Mercuria was started in 2004 by Marco Dunand and Daniel Jaeggi, then executives at Phibro, the commodities trader sold by Citigroup to Occidental Petroleum in 2009. The scandal has hardly hampered the firms stellar growth. 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. Try full digital access and see why over 1 million readers subscribe to the FT, Purchase a Trial subscription for 1 for 4 weeks, You will be billed 65 per month after the trial ends, US says more than 20,000 Russian forces killed in Ukraine since December, The Big Dig: Germany reopens its mines in quest for mineral self-sufficiency, Chinas local governments stuck with bill for neighbourhood surveillance, Moderna co-founder calls on US politicians and judges to stop questioning science, Italy unveils measures to boost flexibility in labour market, JPMorgan to acquire First Republics deposits as US regulators step in, Charlie Munger: US banks are full of bad commercial property loans, Disney uses Ron DeSantiss own words against him in free speech lawsuit, Deutsche Bank plans to beef up investment bank advisory team, How Jamie Dimon swooped on the remains of First Republic, Totals chief tells investors European listing to blame for oil groups trading discount, US live news updates from May 1: JPMorgan to acquire First Republics deposits, Morgan Stanley to cut 3,000 jobs, The difference between First Republic and other recent bank failures, S&P criticised by pension funds over dual-class shares decision, China, America and why not all growth is equal, China could play a crucial role in ending the war in Ukraine, Labour has leverage to carry out private equity tax reform, Why Arsenals struggles show you shouldnt count out Donald Trump, The costs of entrenched high inflation cannot be ignored, Twill of the people: the workwear staple that never gets old, The best new sci-fi: action-packed plots and pure nerdstalgia. Arcadia doesnt make its revenues public.
Duo Who Built Energy Trading Empire Set Sights on JPMorgan Unit Its a model it has replicated across various commodities. He talked about how we are moving into action and investing in. Among their campaigns is one to end the U.S. Environmental Protection Agencys mandate for regulating greenhouse gas emissions. The companys deal with Libyas rebels was a gamble. Theyve remained successful for decades, he said. How big are the biggest trading houses? The Koch brothers, Chairman and CEO Charles and co-owner David Koch, are high-profile supporters of libertarian and anti-regulation U.S. politics. As Chinas clout grows, its very likely that Chinese firms will build trading dynasties of their own. t: +1 832 687 4736 e: info@comtechadvisory.com, 2023 CTRM Center - Privacy Policy | Terms of Service | What is? Banks including JPMorgan and Morgan Stanley (MS) are exiting or reducing their commodities businesses as regulators crack down on risk. 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. In two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. Marco Dunand and Daniel Jaeggi, both Swiss, have worked together closely for more than 25 years in a string of commodities companies, buying and selling crude and oil products in many of the hottest oil trading outfits: Cargill, Goldman Sachs J.Aron, Salomon Brothers Phibro and Sempra.
Mercuria Creates a Nature-based Investment Platform Something has to capture carbon from the air.
Top trading houses speak at commodities conference | Reuters Their combined stakes fluctuate at around 40%. Chinese state funds have flowed into Noble and private Asian traders. That gives its traders the advantage of timely market intelligence. With around $100 billion in sales, Koch Industries is a heavyweight among U.S. oil trading firms, and one of the most secretive U.S. corporations. Asked to comment, Cargill said the company actively backs free trade to boost agriculture in all countries and is in dialogue with many important audiences, including governments Additionally, we dont believe export bans are the solution to either high grain prices or price volatility. ADM declined to comment and a spokesman for Bunge could not be reached. 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.
Mercuria Energy Group, Ltd - MarketsWiki, A Commonwealth of Market 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. 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. Wilmars strategy is to have its fingers in every part of the supply chain, from point of origin to destination. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. 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 world's fourth-largest commodity trader with revenue. U.S. regulations are now pending to limit banks proprietary trading -- speculating with their own cash.
Mercuria's One-Time Heir Apparent Slashed His Stake in Trader Noble quit its global liquefied petroleum gas (LPG) operations in 2010, a year it was censured in Nigeria for discrepancies in gasoline shipping lists. 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. Simply log into Settings & Account and select "Cancel" on the right-hand side. Arcadia has faced controversy before. What really makes them different is their growth, said Olivier Jakob, managing director of Petromatrix GmbH in Zug, Switzerland. Risk has often paid off handsomely for Fredriksen. [25][26][27][28], In 2020, Mercuria had its best year ever, earning $786 million with revenues in line with commodity prices to about $85 billion. 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. 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. The incident was the subject of The Informant, filmed on site in Decatur. Lawyers said doing business with the rebels still required great care. 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. News carefully selected news stories from around the industry. Like Rich, Dauphin created a leading commodities trading house by applying a knife-edge approach to business. Dunand, chairman and chief executive, and Jaeggi, head of global trading, used Mercuria to expand their trading base from crude and oil products. 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. That complements his plan to set up a 200,000 hectares plantation in Indonesias Papua island, which could make him the new Asian sugar king, a title once hold by his uncle. 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.
Mercuria | LinkedIn I never interfered with anything related to his business interests, I hope he will not stick his nose into my business either, Putin said. Wall Street heavyweight JP Morgan is advising Noble on the planned listing. Thats the argument of Sunny Verghese, chief executive of Singapore-based trading firm Olam International. 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. Finding itself with a big client base, but short of the physical supplies it needed to meet demand, Noble built its own processing facilities. 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. The payout percentage of profits at the commodities houses can be double what Wall Street banks pay, says George Stein of New York headhunting firm Commodity Talent. 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. Koch eventually pleaded guilty in 2001 to a felony charge related to its reporting of the benzene emissions. 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. In 2006, J+S was raided by the Polish authorities in connection with an investigation into oil trading in Poland. On its website Koch said it dismissed several employees of a French subsidiary upon learning of the improper and unauthorized payments.
We use A row over oil export control could jeopardize its role in selling the nations crude. 2. 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. And if you dont, youre out of there fast., WHO: ADM, formerly Archer Daniels Midland, founded 1902 by John Daniels and George Archer, Corn goes in one end and profit comes out the other.. (Jessica Donati, Christopher Johnson, Ikuko Kurahone, Richard Mably, Dmitry Zhdannikov reported from London, Gus Trompiz from Paris, Caroline Copley from Zurich, Emma Farge from Benghazi, Karl Plume and Christine Stebbins from Chicago, Hugh Bronstein from Buenos Aires, Joshua Schneyer from New York, Luke Pachymuthu, Harry Suhartono and Naveen Thukral from Singapore; Editing by Richard Mably, Simon Robinson and Sara Ledwith), This story October 21 story was corrrected in the 17th paragraph to reflect that Trafigura paid a U.S. Customs fine on an Iraqi crude cargo in 2001, but denied wrongdoing; clarifies language on Trafiguras 2009 legal action to prevent a report on toxic waste dumping in Ivory Coast from being published. Margarita Louis-Dreyfus told Les Echos that a listing, merger or the entry of a private investor were all options. Nobles shareholders include Chinas sovereign wealth fund, China Investment Corp., which bought an $850 million stake in 2009, and Korean Investment Corp., which has a minority stake. 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. They include gas and power trading on both sides of the Atlantic, physical assets spanning 40 locations in North America, an oil-trading book with a supply and offtake contract with the largest refinery on the U.S. East Coast, 6 million barrels of storage leases in the Canadian oil sands, and Henry Bath & Sons Ltd., a 220-year-old metal-warehouse operator based in Liverpool, England. His partners seized control of the firm in 1994, renaming it Glencore. Was Vitol in violation? For us in the middle, we have the ability then to manage the commodity risk that can be created by the timing differences between those buys and sells, said Steve Mills, ADMs senior executive vice president for performance and growth. They were early dealers in a range of financial derivatives that are now commonplace and brought a level of sophistication to their trading books that most of their competitors could often only envy. Welcome to the Mercuria 2022 Corporate Social Responsibility (CSR) report. [8][9] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today. Put it this way: two of them, Vitol and Trafigura, sold a combined 8.1 million barrels a day of oil last year. What matters is results, and you can see that in the way they trade.. WHO: Arcadia, founded 1988 by Japans Mitsui & Co. Arcadia Petroleum, the London-based oil trading firm owned by billionaire oil tanker magnate John Fredriksen, was thrust into the spotlight in May when U.S. commodities regulators sued it for allegedly manipulating U.S. oil markets in 2008. 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. Founded 25 years ago by Briton Richard Elman, the Hong Kong-based, Singapore-listed Noble Group buys and sells everything from Brazilian sugar to Australian coal. [3] The company is one of the world's five largest independent energy traders and asset operators and is based in Geneva, Switzerland, with 37 additional offices worldwide. Together with Glencore, it pre-qualified to bid for exploration rights in Iraq in a licensing round next year that that could add the Iraqi upstream to its offshore West Africa operations. They point to very competitive pricing offered by Gunvor when it comes to Russian oil tenders. ADM was fined $100 million by the U.S. government for antitrust violations. A fleet of tankers and Asias largest commercial storage facility are among the companys assets. Trading houses saw the opportunity to leverage metals warehousing after the 2008 financial crisis. In two decades the Bangalore-born trader has built Olam into a $4.5 billion company involved in around 20 different commodities including coffee, cocoa, rice, grains and sugar, from a startup that sold Nigerian cashew nuts. Commodities other than oil now represent more than 50 percent of revenue, which totaled $98 billion in 2012 and generated $343 million in profit, according to financial statements seen by Bloomberg.
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