Insight Conversation: Marco Dunand, Mercuria - S&P Global 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. All quotes delayed a minimum of 15 minutes. [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. Fredriksens traders then hurriedly sold the physical crude at a loss, the CFTC lawsuit claims, ending expectations for tight supplies. Which may be why Mabanaft wants to expand beyond its northern European heartland. It helps that Olam has backing in high places: Singapore state investor Temasek holds a 14 percent stake in the trading firm. 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. Glencores flotation has sparked speculation about a possible Vitol initial public offering and what it would be worth. 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. ADMs environmental record has also been questioned by the Environmental Protection Agency, resulting in fines and forced installation of pollution control measures. Koch eventually pleaded guilty in 2001 to a felony charge related to its reporting of the benzene emissions. Many small producers rely almost entirely on Koch to buy, sell and ship their crude. 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. 2022 welcome statement Marco Dunand, Mercuria's CEO, introduces the 2022 CSR report. Marco Dunand, who has helped build Mercuria into one of the world's biggest independent energy traders, said the crash in US crude prices into negative territory in April served as a wake-up. But by the end of April, a U.S. Treasury directive authorized the Vitol transactions. 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. Two decades ago, Chinese farmers fed their pigs just about anything they could lay their hands on. By and large they move as a team, says one retired wheat trader who did business with Cargill for decades. Investors can forget about buying shares in the wildly profitable, family-run firm any time soon. Mercuria Energy Group, Ltd - MarketsWiki, A Commonwealth of Market Mercurias corporate strategy and culture have reflected the professional paths of its founders, who spent the bulk of their early careers at investment banks. and other data for a number of reasons, such as keeping FT Sites reliable and secure, They are better together than they are on their own. And its not just the Europeans. Oil Trader Mercuria's Ownership Structure Revealed in Filing It has trading offices in China, palm plantations and chemical plants across Asia, and silos in Brazil. Lims biggest bet may have been an unprecedented 1997 spree in which Hin Leong bought 30 million barrels of jet fuel and diesel in the key Singapore market -- worth nearly US$800 million over a three-month span. Enuit is an Award-winning provider of ETRM / CTRM solutions worldwide. J+S denied any wrong-doing and suggested the investigation was politically motivated. (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. Jankielewicz and Smolokowskis company, J+S Group, traded Russian crude oil and was a leading supplier of oil to PKN Orlen, Polands top oil refiner. Theyve remained successful for decades, he said. 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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. 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. FIS adds Energy & Commodities to new Value Portfolio business unit for more focus. Still not entirely comfortable with his public profile, Glasenberg has described his shift into the glare of publicity as crossing the Rubicon. The Chinese state is funding nimble trading firms to do its bidding. Arcadia has faced controversy before. Lim Oon Kuin arrived in Singapore from China over 50 years ago, and started to deliver diesel by bicycle to boatmen. 100% Granted (3 out of 3) 0% Denied ( out of 3) 0% Withdrawn ( out of 3) 0% Certified-Withdrawn ( out of 3) This data was calculated using publicly sourced data from OFLC Performance Data. Shenouda, who joined Mercuria in 2014, had for years been seen as the likely successor to co-founders Marco Dunand and Daniel Jaeggi. No suggestions of wrong-doing were leveled against Dunand or Jaeggi. It has also dipped a toe in the upstream business. The scandal has hardly hampered the firms stellar growth. In London, Trafigura reached a pre-trial settlement to put an end to a class-action suit from some 31,000 residents. The French trading giant approached Olam with a merger proposal in 2010, but talks failed earlier this year. The award-winning provider of Commodity Management solutions worldwide. Overall Arcadia profited by $50 million in derivatives markets as oil futures spreads collapsed, according to the suit. Most rely on arbitrage -- playing the divergence in prices at different locations, between different future delivery dates, or between a commoditys quality in different places. Their friendship was galvanized a few years later working for grain trader Cargill Inc. and sharing an apartment while on a training course in Minneapolis. Or this: publicity-shy Vitols sales of $195 billion in 2010 were twice those at Apple Inc. As well as the 200 tankers it has at sea, Vitol owns storage tanks on five continents. 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. (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. If you have any issue with this post please contact us, News > Commodity Trading > Behind the $100 Billion Commodity Empire That Few Know, CTRM Center Roger Jones, the former head of commodities at Barclays Plc (BARC) who has spent more than a quarter-century trading, was hired in 2012 to head its non-oil business and join the board. Chinese state funds have flowed into Noble and private Asian traders. Headquartered in Geneva, Switzerland, and named after Mercury, the god of merchants, Mercurias business straddles global energy markets. 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. I never interfered with anything related to his business interests, I hope he will not stick his nose into my business either, Putin said. With nearly $10 billion worth of cash and bank deposits on Wilmars balance sheet, Kuok is unlikely to stop his expansion drive there. 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. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. 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. Investors say he might already have his sights set on Brazil, to strengthen his position in the global sugar market. http://www.bloomberg.com/news/2014-03-07/behind-the-100-billion-commodity-empire-that-few-know.html, Disclaimer: This was news article was published by another website and was republished on the CTRM Center due to its informative merit and relative nature. Marco Dunand | World Economic Forum WHO: Olam, founded 1989 by the Kewalram Chanrai Group, began trading cashews from Nigeria. Despite a concerted campaign in recent years to put forth a friendlier face and personality through advertising and more appearances by its executives in public forums, Cargill is bound together by a culture of confidentiality, aggressiveness -- and winning. 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. Van der Velden took the reins of a company on a roll. Finding itself with a big client base, but short of the physical supplies it needed to meet demand, Noble built its own processing facilities. Now in his mid-60s, the reclusive trader is busy with his latest empire-building effort: getting government approval to build the city-states fourth oil refinery. And his silence helped feed rumors about Gunvors remarkable growth. Dunand and Jaeggi first met studying economics at the University of Geneva in the late 1970s. 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. On its website Koch said it dismissed several employees of a French subsidiary upon learning of the improper and unauthorized payments. Nigerias Petroleum Product Pricing Regulatory Agency (PPPRA) said that in one transaction the amount of fuel submitted for subsidies did not match the actual quantity delivered. Cargill has since placed a moratorium on buying soybeans from newly deforested land. Glencore has said publicly it would see good value in a merger with Xstrata, but that has so far been rejected by other, smaller, shareholders. 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. They left Cargill in 1987 for Goldman Sachss J. Aron unit in London. A large part of Glencores market value comes from its listed stakes in other companies, most notably a 34.5 percent holding in Swiss miner Xstrata. You can still enjoy your subscription until the end of your current billing period. One of their secrets: filling the empty barges headed home. 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. The firms now controlled by the western-backed rebels might still legally be linked to Libyas national oil corporation. In oil markets, Koch is a brutally efficient middleman. 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. Dunand is the more outgoing of the two founders and often serves as the firms public face, dealing with customers and developing corporate strategy. A spike in world food prices in 2007 stirred an outcry against the largest grain trading firms; when oil prices surged to a record $147 a barrel in 2008, U.S. Congress probed the role of oil trading firms, but found no smoking gun. He is flanked in the top investor table by the youthful heads of Glencores major divisions. Welcome to the Mercuria 2022 Corporate Social Responsibility (CSR) report. Putin finally broke his silence last month: I assure you, I know that a lot is being written about it, without any participation on my part. It buys and sells multiple crops, mills and grinds and processes them into scores of products, both edible and not, and ships them to markets around the world. It was done a long time ago. or "When we founded Mercuria 10 years ago . Along the way it has moved headquarters to Belgium, Argentina, Brazil and then the United States. These days, Olam has upstream operations in everything from a coffee plantation in Laos to a rice business in Thailand, from almonds in Australia to cashews in Africa. 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. Mercuria - Wikipedia Energy trader Mercuria sees turn in oil market | Financial Times It also said its foreign units had ended sales to Iran years ago, and did not violate U.S. law by conducting business with Iran earlier. 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. It is also the largest producer of consumer pack edible oils with about 45 percent market share. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. The shares listed at 530 pence in May but have since traded below that, dropping almost a quarter in three months. The line may be simplistic but its not too far from the truth. You may change or cancel your subscription or trial at any time online. Despite not being on the registry, Bunge continues to export grains and agricultural products as usual, but it cannot cash in on certain tax benefits and it faces hurdles transporting goods within Argentina, which analysts say could hurt the companys bottom line. Glencores initial public offering was the largest globally this year, attracting huge publicity as well as arguments that it marked the top of the commodities cycle. Trading houses competed with banks for the spoils -- Glencore, Trafigura and Noble took one warehousing company each, Goldman and JP Morgan the others. Vitols early running gave the firm an edge with the countrys new political stewards. "We expect demand to be a bit over 100 million barrels per day (bpd) at year end, which is a little bit short of pre-COVID levels . When in Wichita, he often dines in the Koch cafeteria. Since co-founding Mercuria with partner Marco Dunand in 2004, the company has ballooned into one of the top four commodity trading houses in the world, turning over more than $100 billion in. It focused initially on shipping fuel oil cargoes to the mainland, a relationship that has since deepened. Fredriksen became a leading oil shipping magnate well before buying Arcadia, in 2006. [29][30], In 2021, Mercuria bought the clean energy specialist Beyond6 from HC2Holdings for $169 million. Many of the biggest players in oil and metals trading trace their roots back to notorious trader Marc Rich, whose triumph in the 1960s and 70s was to create a spot market for oil, wresting business away from the majors. Home - Mercuria Corporate Social Responsibility 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. (Bloomberg) It's "possible" that oil will hit $100 a barrel this winter, but $80 to $90 is the expected range, said Marco Dunand, the chief executive officer of commodities trader Mercuria Energy Group Ltd. With surging energy costs contributing to inflation, as the global economy recovers from the pandemic . [21], In January 2016, Mercuria announced that ChemChina had bought a 12% stake in 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. While Rich himself fled to Europe in the 1980s to escape possible imprisonment for tax evasion in the United States, Dauphin spent almost six months behind bars in Ivory Coast in 2006-7 in pre-trial detention involving a dispute over toxic waste dumping. 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. Several big trading houses are still family-held -- firms like agricultural giant Cargill, the top private U.S. company, or Kansas-based Koch Industries, a close No. They have the most talent, the deepest pockets, and the best risk management.. Mabanaft is aiming to further diversify its product portfolio by pursuing a controlled geographic growth strategy, is all communications manager Maren Mertens is able to offer on the subject. The companys deal with Libyas rebels was a gamble. WHO: Noble Group, founded 1986 by UK scrap metal man Richard Elman. A lysine price-fixing scandal in 1993 tarred its name after three top executives were indicted and imprisoned. To contact the reporters on this story: Andy Hoffman in Geneva at ahoffman31@bloomberg.net; Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net, To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Amanda Jordan Founded in 2004, Mercuria Energy Trading is one of the world biggest independent energy . His 28-year-old twins Kathrine and Cecilie play a growing role in his sprawling business empire, according to press reports. They have some superstars but mostly a lot of team players -- what I would describe as well grounded, fundamental traders.. After dropping out of school he began his career at 15 in a metals scrap yard in the UK. The company lists its trade in paper derivatives as larger still, or about 10 million barrels a day. Cargill hopes to dominate new markets as well. In 2001, for instance, it bought storied Swiss company Andre & Cie, once one of the worlds top five grains traders. And unlike commodities producers, such as U.S. oil giant Exxon Mobil, trading firms dont just make money when prices go up. A master of physical markets, it owns a 4,000-mile U.S. pipeline network and three of the countrys most profitable refineries. Inside the lake office, as it is known, sits the chairman of Cargill Inc., one of the largest privately held companies in the world. Arcadias chief executive in Singapore, Stephen Gibbons, denied the contents of the cable and told Reuters the kidnapping allegations were ludicrous. Decatur, Illinois-based ADM is one of the worlds biggest commodities traders. The JPMorgan unit employs about 600 and represents a range of assets assembled over decades by firms including Bear Stearns Cos. and RBS Sempra, which the bank bought during an acquisition binge beginning in 2008. We know how to close the gap (with Vitol and Glencore) and we are actively catching up, Tornqvist said. As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group[16] and Electrabel in London. People forget about it. Behind the $100 Billion Commodity Empire That Few Know The grains business accounts for a third of its earnings and could have a value of more than $5 billion. Dunand went on to say the "urgency level" around the energy transition had increased with growing scientific knowledge, availability of data and political support, and Mercuria is confident 50% of its investments will be in the energy transition sphere within five years. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. Introduction - Mercuria Corporate Social Responsibility Mercuria 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.
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