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. After dropping out of school he began his career at 15 in a metals scrap yard in the UK. [7] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski. WHO: Noble Group, founded 1986 by UK scrap metal man Richard Elman. Mercuria also differs in tone. Mabanaft sold 20 million tonnes of oil in 2010, up from 18 million tonnes in 2009. No suggestions of wrong-doing were leveled against Dunand or Jaeggi. A Swiss oil trader, his cowgirl daughter and the rodeo art of 'cutting Enuit is an Award-winning provider of ETRM / CTRM solutions worldwide. Margarita Louis-Dreyfus told Les Echos that a listing, merger or the entry of a private investor were all options. 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. Publications A collection of deliverables from ComTech Advisory including Research reports, White Papers, Analyst Notes and other informative articles all available for free download. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. The sources said net income was $273m and Mercuria's net asset value climbed to $2.94bn from $2.6bn in 2013 People familiar with the results said Mercuria would have posted record pre-tax. Elman, the companys chairman, holds around 30 percent of the company. 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. Wall Street heavyweight JP Morgan is advising Noble on the planned listing. 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 one of its biggest-ever crackdowns, the U.S. Commodity Futures Trading Commission alleges Arcadia traders amassed large physical crude positions in Cushing, Oklahoma, to create the appearance of tight supply at the delivery hub for U.S. oil futures. We havent seen this pace of population growth in our living memory, Verghese told a conference in Singapore late last year. It was done a long time ago. 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. We dont see the need to raise money from the market, Dunand said. The company handles 3 percent of the worlds daily oil consumption. 13 in the Fortune 500 list of publicly held companies, just behind Wall Street banking giant Citigroup. It doesnt look likely anytime soon. Among their campaigns is one to end the U.S. Environmental Protection Agencys mandate for regulating greenhouse gas emissions. What matters is results, and you can see that in the way they trade.. In June, it invested $50 million in a Romanian gas producer. Cargill, as well as fellow U.S. commodity trading firms Bunge and ADM, agreed to undertake a public relations effort with the goal of creating a political problem for the Government of Ukraine, according to a 2007 diplomatic cable by the U.S. ambassador to Ukraine that was obtained by WikiLeaks and made available to Reuters by a third party. When it comes to his critics, Vladimir Putin is a heavyweight puncher. Grain traders welcomed our offer to lend a diplomatic hand, the ambassador wrote. 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. JPMorgans power-generating assets, which include stakes in three U.S. plants, wont be included in a sale to Mercuria, according to three people close to the talks. But it was absolutely one of the greatest moves in the business.. And his silence helped feed rumors about Gunvors remarkable growth. Hes well on the way. Victoria Attwood Scott, Mercurias head of compliance, also joined from Goldman Sachs. WHO: Gunvor, founded 1997 by Swedish oil trader Torbjorn Tornqvist and Russian/Finnish businessman Gennady Timchenko, TURNOVER: $80 billion 2011, company estimate ($65 billion 2010). Mercuria Creates a Nature-based Investment Platform Top officials in many other large trading companies began their careers at Glencore. Outside the commodities business, many of these quiet giants who broker the worlds basic goods are little known. 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. Its website reveals little more than that it is the trading arm of privately owned oil company Marquard & Bahls. It doesnt always work. 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. Gunvors oil dominance has waned in the past two years -- it is handling around a fifth of Russian seaborne oil exports, down from a third three years ago. Citing concerns over potential shortages and rising bread prices, Kiev had placed export quotas on cash crops and temporarily stopped granting export licenses for corn, wheat, barley and other grains. 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. 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. Cargill has since placed a moratorium on buying soybeans from newly deforested land. Mercuria, the former owner of Vesta Terminal, entered into a joint venture with Sinopec by selling 50% of the terminals in 2013. ENERGY TURNOVER: $75 billion 2011 company estimate (2010, $47 billion). Global Advisors Newton said Dunand and Jaeggis ability to react to shifting markets means Mercuria will probably thrive in an unpredictable industry littered with failures. And its not just the Europeans. 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. 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 topping $100 billion last year. Tornqvist says Gunvors goal is to become a truly global company. It puts them in a tremendous position.. A wealthier world needs more food. A master of physical markets, it owns a 4,000-mile U.S. pipeline network and three of the countrys most profitable refineries. Louis Dreyfus is a well-honed global operator, marketing agricultural commodities from wheat to orange juice. I never interfered with anything related to his business interests, I hope he will not stick his nose into my business either, Putin said. Check if your 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. Like rival Vitol, Trafigura has seized the opportunity to get into oil storage as oil majors focus on production. Its a message that could apply just as well to the Louis Dreyfus group. Vitols early running gave the firm an edge with the countrys new political stewards. [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. Still not entirely comfortable with his public profile, Glasenberg has described his shift into the glare of publicity as crossing the Rubicon. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. In May, Argentina kicked Bunge off the countrys exporters register after the government alleged it had evaded $300 million in taxes, an accusation the company denies. Inside the lake office, as it is known, sits the chairman of Cargill Inc., one of the largest privately held companies in the world. It announced in early October that it may float its storage subsidiary Puma Energy within 18 months. That comment, by Matt Damons character Marc Whitacre in the 2009 corporate scandal film The Informant, described how U.S. agricultural firm Archer Daniels Midland Co. turned grain into gold. 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. But to involve Mr Putin and any of his staff in this dialogue is speculation, he added. Independent traders including Mercuria are filling the void. Vitols wealth is spread across only 330 share-holding employees, fewer than Glencores 500. Mercuria traded 182 million metric tons of oil or oil equivalent in 2012, according to its website. Co-founders Marco. offers FT membership to read for free. In 2014, Mercuria bought part of JPMorgan's physical commodities trading business for a reported US$3.5 billion. In two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. We went to the Ivory Coast on a mission to help the people of Abidjan, and to find ourselves arrested and in jail as a result has been a terrible ordeal for ourselves and our families, said Dauphin. Trafigura was also quick to recognize the potential of storage in the industrial metals markets. The warehouses seem to have an infinite capacity to absorb metal, but a very small capacity to release it, said Nick Madden of Novelis, the worlds top rolled aluminum producer. We are keen to consolidate our culture before we could think about changing it. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. Asian demand for South American soybeans has exploded over the last five years and Bunge is arguably the best positioned company in the world as it relates to servicing and profiting from the Asian demand trend, said Jeff Farmer, an analyst who follows the company for Jefferies & Company in Boston. Of the six major metals warehousers only one, Dutch-based C.Steinweg, remains independent. Noble has grown by acquiring troubled competitors. U.S. refiner Tosco sued Arcadia and Glencore for market manipulation; the case was settled out of court. 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. Welcome - Mercuria Corporate Social Responsibility The three former Goldman Sachs Group Inc. executives together own a controlling stake in Mercuria through a Guernsey entity called MDJ Oil Trading Ltd. If you dont offer competitive terms, no one will work with you, he told a Russian daily this month. Energy trader Mercuria sees turn in oil market | Financial Times That figure is likely to change because of the addition of JPMorgans assets. They have some superstars but mostly a lot of team players -- what I would describe as well grounded, fundamental traders.. Corrected: Commodity Traders: The trillion dollar club | Reuters 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. The Kochs have denied funding the Tea Party, but their empires far-reaching tentacles in the political arena have spawned a nickname: the Kochtopus. It also has a substantial presence in Asias fuel oil market, the worlds largest. They stayed until 1994, then joined Phibro for a five-year stint when it was controlled by Salomon Brothers. I would love for them to be listed on the stock market, said Gertjan van der Geer, who manages an agriculture fund for Swiss bank Pictet. 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. 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. One of the things that gives us an advantage is that were working in the physical markets as well so (we can) absorb all that information and make the calls.. Back in Hong Kong, he traded commodities with China in the 1970s and was the first to sell Chinas Daqing crude oil to the United States. t: +1 832 687 4736 e: info@comtechadvisory.com, 2023 CTRM Center - Privacy Policy | Terms of Service | What is? 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. Mercuria is just seven years old, but is already one of the worlds top five energy traders. As it turns the pumps back on, Libyan oil firm Agoco has allocated Vitol half of its crude production to repay debts. . The scandal has hardly hampered the firms stellar growth. Thats the nature of their business., WHO: Glencore, founded 1974 as Marc Rich and Co. renamed Glencore in 1994, WHERE: Baar, Switzerland WHAT: Metals, minerals, energy, agricultural products, REVENUE: $145 billion in 2010 CEO: Ivan Glasenberg, STAFF: 2,800 people directly; 55,000 at Glencores industrial assets. Investors say he might already have his sights set on Brazil, to strengthen his position in the global sugar market. 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. Mercuria earnings rise after JPMorgan unit swallowed It has coal mines in Kalimantan in Indonesia, oilfields in Argentina and Canada plus oil trading in Singapore, Chicago, Houston and across Europe. He has made a fortune. Driven by the rise of Brazil, China, India and other fast-growing economies, the global commodities boom has turbocharged profits at the worlds biggest trading houses. Banks including JPMorgan and Morgan Stanley (MS) are exiting or reducing their commodities businesses as regulators crack down on risk. 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. 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. 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 combined stakes fluctuate at around 40%. J+S denied any wrong-doing and suggested the investigation was politically motivated. Koch declined to discuss its trading with Reuters. [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. Many small producers rely almost entirely on Koch to buy, sell and ship their crude. It is true that I, together with three other businessmen, sponsored a judo club where Mr Putin became honorary president, he wrote. Arcadia has faced controversy before. The top five piled up $629 billion in revenues last year, just.

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