As Chinas clout grows, its very likely that Chinese firms will build trading dynasties of their own. Journalists in 50+ countries follow the constant flow of money made and lost in oil & gas while 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. WHO: Cargill, founded 1865 by William Wallace Cargill at the end of the U.S. Civil War, WHERE: Minneapolis, Minnesota WHAT: Grains, oilseeds, salt, fertilizers, metals, energy, TURNOVER: $108 billion (2010) CEO: Greg Page STAFF: 130,000. Founded in the 1920s by patriarch Fred Koch, a U.S. engineer who developed a new method of converting oil into gasoline, Koch helped to build a refining network in the Soviet Union in the 1930s. 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. Marco Dunand is Chairman/Co-Founder at Mercuria Energy Group Holding SA. Electronic Invoice exchange and reconciliation for faster payments/settlements. 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 offers FT membership to read for free. NEW YORK (Reuters)- For the small club of companies who trade the food, fuels and metals that keep the world running, the last decade has been sensational. That helped balance the reputational damage of being fined -- along with many other companies -- for paying surcharges a decade ago to Saddam Husseins Iraqi oil ministry during the U.N. oil-for-food program. Noble quit its global liquefied petroleum gas (LPG) operations in 2010, a year it was censured in Nigeria for discrepancies in gasoline shipping lists. Compare Standard and Premium Digital here. That gives its traders the advantage of timely market intelligence. His 28-year-old twins Kathrine and Cecilie play a growing role in his sprawling business empire, according to press reports. In April the company dodged NATO bombs and a naval blockade and sent an oil tanker into the battered Mediterranean port of Tobruk to extract the first cargo of premium crude sold by rebels at the helm of a breakaway Libyan oil company defying Muammar Gaddafi. We use 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 two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. 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 For many commodities traders, the most profitable ploy has been the squeeze, which involves driving prices up or down by accumulating a dominant position. 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. Was Vitol in violation? Arcadia has faced controversy before. Certain musicians, they have had a few hits and sort of faded away. We are not thinking about an IPO -- but that doesnt mean we dont have an open mind, Dunand told Reuters in June. Koch declined to discuss its trading with Reuters. Kochs chief executive Charles Koch, a libertarian activist with a $22 billion personal fortune according to Forbes, has said his company would go public over my dead body. Arcadias chief executive in Singapore, Stephen Gibbons, denied the contents of the cable and told Reuters the kidnapping allegations were ludicrous. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. It has coal mines in Kalimantan in Indonesia, oilfields in Argentina and Canada plus oil trading in Singapore, Chicago, Houston and across Europe. They have some superstars but mostly a lot of team players -- what I would describe as well grounded, fundamental traders.. 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. A rare news release announced that Jan-Willem van der Velden, who started as an international trader at the company in 1997, would take over as CEO from January this year. Independent traders including Mercuria are filling the void. 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. 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. That took the headcount to 1,200 from about 10 in 2004. The tsarina, or MLD, as the press sometimes also calls her. From 2011 to 2013, Mercuria hired 570 people, including key executives from investment banks as it expanded beyond energy. Argentinas tax office is investigating dozens of other agricultural exporters as well. Last year he surprised the market when he trumped Chinas Bright Food in a $1.5 billion deal to buy Australias Sucrogen. Putin worked in the mayors office in the early 1990s when Timchenko and his friends, Putin said, spun off an oil trading unit of the Kirishi oil refinery. 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. 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. Margarita Louis-Dreyfus told Les Echos that a listing, merger or the entry of a private investor were all options. Together, they are worth over a trillion dollars in annual revenue and control more than half the world's freely traded commodities. 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. 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. Co-founders Marco. When it comes to his critics, Vladimir Putin is a heavyweight puncher. MARCO DUNAND, CEO OF MERCURIA ENERGY TRADING. The company's gross profit on sales for the year was $1.86 billion. Geography isnt the sole focus of expansion -- it has moved into naphtha, LPG and wood pellets. Investors say he might already have his sights set on Brazil, to strengthen his position in the global sugar market. On the world oil markets the name Vitol is as familiar as Exxon is at the petrol pump. Glencore has long made its fortune by working on the fringes and in areas where few others dared. It doesnt look likely anytime soon. 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.. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. Mercuria looks for opportunities to participate in industry initiatives, industry associations and working groups which aid communication and progress in our industry, as well as supporting published guidelines and initiatives wherever appropriate. Check if your Sometimes you get it wrong, but you have to accept it, he said. Without a commanding position in any region or commodity, the firm has sought out bottlenecks and imbalances in niche markets and positioned itself to make money trading derivatives using insights gained from its physical trading. 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. The companys largest shareholder is now former coal trader and Chief Executive Ivan Glasenberg, an intense and charismatic South African who holds a stake of just under 16 percent, worth around 4.5 billion pounds at current prices. That experience defined the trading strategies of Dunand and Jaeggi who moved from Phibro to start Sempras European and Asian trading business in 1999 before founding Mercuria in 2004. [17] In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC. We dont hear much about them yet, but in time we will.. 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 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. 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. "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 . Noble is now seeking to spin off its agriculture business with a listing on the Singapore Exchange. 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. Cognite Data Fusion Deployed for Data Management in Oil & Gas and Power. On its website Koch said it dismissed several employees of a French subsidiary upon learning of the improper and unauthorized payments. Glencores flotation has sparked speculation about a possible Vitol initial public offering and what it would be worth. Around two decades ago, Kuok Khoon Hong decided to leave the business empire of his billionaire uncle Robert Kuok to set up an edible oil business with a big bet: China. 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. U.S. and European regulators are cracking down on big banks and hedge funds that speculate in raw goods, but trading firms remain largely untouched. Together, they are worth over a trillion dollars in annual revenue and control more than half the worlds freely traded commodities. By and large they move as a team, says one retired wheat trader who did business with Cargill for decades. The firms far-ranging industrial interests also include chemicals, forestry, ethanol, carbon trading and ranching. The top trading firms are price makers, said Chris Hinde, editor of London-based Mining Journal. But to involve Mr Putin and any of his staff in this dialogue is speculation, he added. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for 65 per month. 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. 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. Pre-tax income for its parent company Marquard & Bahls was $274 million, up from $252 million the previous year. A fleet of tankers and Asias largest commercial storage facility are among the companys assets. And unlike commodities producers, such as U.S. oil giant Exxon Mobil, trading firms dont just make money when prices go up. 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. The Kochs have denied funding the Tea Party, but their empires far-reaching tentacles in the political arena have spawned a nickname: the Kochtopus. The line may be simplistic but its not too far from the truth. The futures market may take some of that information and run with it. While pursuing Robert Louis-Dreyfus passion for the club, which drained millions from his fortune, she has placed strict conditions on new investment. But theres little room for maneuver: the majority stake she inherited is locked up in a trust her husband set up to last for 99 years. He talked about how we are moving into action and investing in. We know how to close the gap (with Vitol and Glencore) and we are actively catching up, Tornqvist said. Mercuria was nearing the sale of an equity stake of 10 percent to 20 percent to Chinese sovereign wealth fund State Development & Investment Co., according to two people familiar with the matter. What matters is that the group and its name survive, she said. While Vitol would not comment, industry talk has it that none of its senior employees, including CEO Ian Taylor who joined from Shell in 1985 or long-timer Bob Finch who heads Vitols coal business, holds more than 5 percent of the company. 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. Perhaps to make up for that, it has moved into new sectors such as natural gas, coal and emissions. Result: Chinas pigs are heavier than ever and Bunge has become a key supplier to one of the fastest growing economies in the world. t: +1 832 687 4736 e: info@comtechadvisory.com, 2023 CTRM Center - Privacy Policy | Terms of Service | What is? They are buying and selling oil. 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. Finding itself with a big client base, but short of the physical supplies it needed to meet demand, Noble built its own processing facilities. Founded in 2004, Mercuria Energy Trading is one of the world biggest independent energy . In 2011 the company will turn over $80 billion, up from just $5 billion in 2004. Marco Dunand CHIEF EXECUTIVE OFFICER. Its website reveals little more than that it is the trading arm of privately owned oil company Marquard & Bahls. 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. 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 Energy Trading has a total of 1001 employees. Standard Digital includes access to a wealth of global news, analysis and expert opinion. 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. Behind the $100 Billion Commodity Empire That Few Know, Digitalize your trade & lifecycle confirms with real-time data driven technology. The firm is now the worlds largest shipper of Robusta coffee and counts Nestle, Hershey, General Mills and Sara Lee as clients. Olympique Marseille is at a crossroads, she told supporters in a statement to announce the changes at the club. Design by Andrew Colby. 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.. Timchenko doesnt need to be told to keep a low profile. In its early days it profited by opening a trade route shipping Russian crude to China from Gdansk, Poland. They form an exclusive group, whose loosely regulated members are often based in such tax havens as Switzerland. The award-winning provider of Commodity Management solutions worldwide. The sort of position that has allowed Vitol to do a brisk oil business with the U.S. government, the besieged Syrian regime, and Libyas newly empowered rebels simultaneously over the past few months. Many amass speculative positions worth billions in raw goods, or hoard commodities in warehouses and super-tankers during periods of tight supply. Vitols goal was to supply the refined products and then try to pick up upstream assets in Libya, said a western diplomatic source. Wall Street heavyweight JP Morgan is advising Noble on the planned listing. The CEO sometimes flies to speaking engagements with no entourage. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. 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. 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. Wilmars strategy is to have its fingers in every part of the supply chain, from point of origin to destination. 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. To achieve this, it would be necessary to recruit the (Ukrainian) farmers to take an active role. The material was dumped in open-air sites around Abidjan in August 2006 after being unloaded from a Trafigura-chartered tanker. 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. Founded in 1818 in Amsterdam, the company is the worlds No.1 oilseed processor. The top five piled up $629 billion in revenues last year, just below the global top five financial companies and more than the combined sales of leading players in tech or telecoms. Outside the commodities business, many of these quiet giants who broker the worlds basic goods are little known. The grains business accounts for a third of its earnings and could have a value of more than $5 billion. As usual, details are scant. In the early 2000s, the Brent crude oil stream -- used as a global price benchmark -- fell to 400,000 barrels per day from more than 1 million in the late 1980s. 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. All quotes delayed a minimum of 15 minutes. [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. 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. 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. They see a business opportunity and they grab it with both hands without making a song and dance about it, said Russell Newton, a partner with St. Helier-based hedge fund Global Advisors (Jersey) Ltd., who has known Dunand and Jaeggi for about 25 years. 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. There is no ideal solution. FIS adds Energy & Commodities to new Value Portfolio business unit for more focus. Trading houses competed with banks for the spoils -- Glencore, Trafigura and Noble took one warehousing company each, Goldman and JP Morgan the others. 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. No sentimental attachments to any country or location. "When we founded Mercuria 10 years ago . The companys early forays into trading gas and oil left it with a black eye. 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. 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. In oil markets, Koch is a brutally efficient middleman. [3] 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. In early 2007, when world grain prices were surging toward all-time highs, it faced a problem in Ukraine.
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