Lim Oon Kuin arrived in Singapore from China over 50 years ago, and started to deliver diesel by bicycle to boatmen. [17] In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC. 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. On paper, the partial float made boss Ivan Glasenberg $10 billion richer overnight. In oil markets, Koch is a brutally efficient middleman. Behind the $100 Billion Commodity Empire That Few Know, Digitalize your trade & lifecycle confirms with real-time data driven technology. As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group[16] and Electrabel in London. Lawyers said doing business with the rebels still required great care. 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It helps that the firm usually has the backing of Washington. cookies Trafigura took legal action to keep a report about the Ivory Coast incident out of newspapers, but details were eventually made public. Shenouda, who joined Mercuria in 2014, had for years been seen as the likely successor to co-founders Marco Dunand and Daniel Jaeggi. 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. 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. Just 10 years old, Mercurias ascent has outpaced its competitors. JPMorgans Canadian and U.S. operations will prove most valuable to Mercuria, according to Dawe. The Chinese state is funding nimble trading firms to do its bidding. 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. Executives of Illinois-based ADM, formerly Archer Daniels Midland, were jailed for an early 1990s international price-fixing conspiracy for animal feed additive lysine. Enuit is an Award-winning provider of ETRM / CTRM solutions worldwide. 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. 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. Two decades ago, Chinese farmers fed their pigs just about anything they could lay their hands on. Tornqvist says Gunvors goal is to become a truly global company. Mercuria is just seven years old, but is already one of the worlds top five energy traders. 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. The companies dispute the charges. Along the way it has moved headquarters to Belgium, Argentina, Brazil and then the United States. 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. The trading houses talent and deep pockets translate into incredible power. The discussions with SDIC were halted once Mercuria neared the JPMorgan business, one of the people said. Its early dealings with the Libyan rebels may offer the chance of a foothold in Libyas oil and gas territory. I have known the citizen Timchenko for a very long time, since my work in St Petersburg, Putin told a group of Russian writers. The company lists its trade in paper derivatives as larger still, or about 10 million barrels a day. In London, Trafigura reached a pre-trial settlement to put an end to a class-action suit from some 31,000 residents. (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 . 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). Trafigura paid a $200 million settlement and the countrys prosecutor declared that there was no evidence of any illegality or misconduct by any Trafigura company or staff. With more trading companies trying to gain an edge by owning businesses that produce, store or process commodities, Mercuria followed suit. A Trafigura-chartered tanker was intercepted in the Caribbean in 2001 on suspicion of carrying illegal volumes of Iraqi crude. 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. Like Vitol, he says, Gunvor has no plans to follow Glencore into an IPO. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. But ADMs reputation has endured a black eye or two over the years. 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. Enuit Hiring, Growing, and Focused on Next Version, Energy One Sees Early Success in 24 by 7 Services Market. 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 He spent time trading metal in Hong Kong before moving to New York and a stint at commodities trading giant Phibro. It puts them in a tremendous position.. U.S. regulations are now pending to limit banks proprietary trading -- speculating with their own cash. 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. 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. The futures market may take some of that information and run with it. Overall Arcadia profited by $50 million in derivatives markets as oil futures spreads collapsed, according to the suit. Compare Standard and Premium Digital here. Marco Dunand is Chairman/Co-Founder at Mercuria Energy Group Holding SA. offers FT membership to read for free. [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. 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. But they have seen interest from potential investors, and have considered a tie-up with a sovereign wealth fund. We are keen to consolidate our culture before we could think about changing it. analyse how our Sites are used. 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. When spot and futures prices began to converge, Koch would quietly slip crude from the ships into its onshore pipelines. Arcadia has faced controversy before. After a newspaper interview he wrote an open letter in 2008 headlined Gunvor, Putin and me: the truth about a Russian oil trader. One of their secrets: filling the empty barges headed home. In June, it invested $50 million in a Romanian gas producer. WHO: Noble Group, founded 1986 by UK scrap metal man Richard Elman. 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. 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. 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. The scandal has hardly hampered the firms stellar growth. 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. It has also dipped a toe in the upstream business. Dunand, chairman and chief executive, and Jaeggi, head of global trading, used Mercuria to expand their trading base from crude and oil products. ADM was fined $100 million by the U.S. government for antitrust violations. See Marco Dunand's compensation, career history, education, & memberships. They point to very competitive pricing offered by Gunvor when it comes to Russian oil tenders. The godfather of oil trading, Marc Rich, taught one of his most talented apprentices Claude Dauphin almost every trick in the business. Thats the argument of Sunny Verghese, chief executive of Singapore-based trading firm Olam International. But make no mistake, if you perform well at Koch, you are richly rewarded in salary terms, the person added. Its a model it has replicated across various commodities. Of the six major metals warehousers only one, Dutch-based C.Steinweg, remains independent. A master of physical markets, it owns a 4,000-mile U.S. pipeline network and three of the countrys most profitable refineries. Mabanafts profile is low even by the secretive standards of other independent oil traders. 2022 welcome statement Marco Dunand, Mercuria's CEO, introduces the 2022 CSR report. 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. 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. A fiercely libertarian ideology and ultra-competitive engineering prowess live on at Koch Industries spartan headquarters in Wichita, Kansas, a former Koch executive told Reuters. It is also the worlds second largest trader of rice after Louis Dreyfus. Cargill hopes to dominate new markets as well. [1] The firm was founded in 2004 by two former Wall Street oil traders, Marco Dunand and Daniel Jaeggi. Independent traders including Mercuria are filling the void. 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. Koch declined to discuss its trading with Reuters. That would put them well below the 16 percent stake Glencore CEO Ivan Glasenberg owns in his firm. 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. Vitol also discreetly supplied Libyas rebels with $1 billion in fuel, Reuters has learned -- supplies they desperately needed to advance on Tripoli. 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. The government of Ivory Coast said 16 people died. Theres a great deal of trust between them.. 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. But earlier this year the worlds wealthiest oil trader raised that profile, and did its reputation no harm, by becoming the first to deal with Libyas rebels, long before the overthrow of Muammar Gaddafi. Mercuria's Marco Dunand talked to S&P Global Platts about the challenges, implications, and opportunities that the coronavirus pandemic presents across all the key commodity classes in a time of unprecedented volatility in the global markets. To achieve this, it would be necessary to recruit the (Ukrainian) farmers to take an active role. Vitols wealth is spread across only 330 share-holding employees, fewer than Glencores 500. Belgium-born Rich sold his stake in 1994. 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. For a full comparison of Standard and Premium Digital, click here. The thinking is, why open the books to the world? said a former lobbyist for Koch who requested anonymity. 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. personalising content and ads, providing social media features and to Shortly after the material was dumped, thousands of residents of the city of Abidjan complained of illnesses, including breathing problems, skin irritation and related ailments. They are buying and selling oil. 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. Which may be why Mabanaft wants to expand beyond its northern European heartland. 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. 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.

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