Jaeggi, the head of trading, operates more in the background, conceiving trading positions. [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. It slipped 0.3 percent in 2013 and is down 2.6 percent this year at about $108 a barrel. Former Koch employees were implicated in improper payments to secure contracts in six foreign countries between 2002 and 2008, and the companys officers admitted in a letter made public by a French court last year that those activities constitute violations of criminal law, according to a report in Bloomberg Markets Magazine this month. They left Cargill in 1987 for Goldman Sachss J. Aron unit in London. [1] The firm was founded in 2004 by two former Wall Street oil traders, Marco Dunand and Daniel Jaeggi. [18] The Miami, Florida-based MGM International Group is a developer of international projects to reduce greenhouse gas emissions. 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. 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. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for 65 per month. [8][9] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today. Switzerland-based Glencore cast aside its famed secrecy earlier this year with a record market debut that turned its executives into paper millionaires and propelled the firm into the headlines. Pre-tax income for its parent company Marquard & Bahls was $274 million, up from $252 million the previous year. The new rules dont apply to trading firms. 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. U.S. refiner Tosco sued Arcadia and Glencore for market manipulation; the case was settled out of court. [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. 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. We dont hear much about them yet, but in time we will.. He spent time trading metal in Hong Kong before moving to New York and a stint at commodities trading giant Phibro. With more trading companies trying to gain an edge by owning businesses that produce, store or process commodities, Mercuria followed suit. 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. 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. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. In 2001, for instance, it bought storied Swiss company Andre & Cie, once one of the worlds top five grains traders. A wealthier world needs more food. 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. MARCO DUNAND, CEO OF MERCURIA ENERGY TRADING. 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. 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. Behind the $100 Billion Commodity Empire That Few Know Introduction - Mercuria Corporate Social Responsibility Last year he surprised the market when he trumped Chinas Bright Food in a $1.5 billion deal to buy Australias Sucrogen. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. 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. A profile in the New Yorker magazine last year identified the brothers as behind-the-scenes operators who bankroll the U.S. JPMorgans Canadian and U.S. operations will prove most valuable to Mercuria, according to Dawe. Thats equal to the combined oil exports of Saudi Arabia and Venezuela. 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. Dont miss our exclusive university But Cargill is anything but public. Hes well on the way. Some transgressions make headlines. Brent crude rose 3.5 percent that year in a fourth annual advance. Work Permit Application Outcome. Victoria Attwood Scott, Mercurias head of compliance, also joined from Goldman Sachs. We dont see the need to raise money from the market, Dunand said. ENERGY TURNOVER: $75 billion 2011 company estimate (2010, $47 billion). 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. Vitol also discreetly supplied Libyas rebels with $1 billion in fuel, Reuters has learned -- supplies they desperately needed to advance on Tripoli. Arcadia has faced controversy before. 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. We havent seen this pace of population growth in our living memory, Verghese told a conference in Singapore late last year. But they have seen interest from potential investors, and have considered a tie-up with a sovereign wealth fund. Its meteoric growth has been piloted by a couple of the sharpest minds in commodities. The three former Goldman Sachs Group Inc. executives together own a controlling stake in Mercuria through a Guernsey entity called MDJ Oil Trading Ltd. 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. But most analysts think it needs fresh capital to grow, or to buy out minority family shareholders who will have the option to sell their stakes in 2012. 13 in the Fortune 500 list of publicly held companies, just behind Wall Street banking giant Citigroup. 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. ADMs environmental record has also been questioned by the Environmental Protection Agency, resulting in fines and forced installation of pollution control measures. They sail as close to the wind as they possibly can legally, said an oil analyst who requested anonymity. ADM was fined $100 million by the U.S. government for antitrust violations. Sometimes you get it wrong, but you have to accept it, he said. tracking emerging trends and opportunities in the future of energy. Marco Dunand | World Economic Forum The Chinese state is funding nimble trading firms to do its bidding. Beyond Arcadia, Fredriksens stable of commodities-related firms includes MarineHarvest, a global salmon-farming conglomerate billed as the worlds largest seafood company. He also owns oil tanker operator Frontline, U.S. oil trader Parnon -- also named in the CFTC lawsuit -- energy driller Seadrill and gas distributor Golar LNG. But ADMs reputation has endured a black eye or two over the years. Mercuria is just seven years old, but is already one of the worlds top five energy traders. Founded in 2004 by Swiss traders Marco Dunand and Daniel Jaeggi. [15] The company tells Bloomberg half of its portfolio will be in renewables in the next five years, and has already committed to invest over $2 billion into the energy transition.[15]. But in May the U.S. Commodity Futures Trading Commission sued Arcadia and Parnon, both owned by a Norwegian shipping billionaire, for allegedly manipulating U.S. oil prices three years ago, amassing millions of barrels they had no intention of using. 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. [7] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski. 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. Their reach is expanding. That figure is likely to change because of the addition of JPMorgans assets. Vitols Saddam connection does not seem to have hurt it in Iraq. 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. 03.10.2014. In two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. Fredriksen became a leading oil shipping magnate well before buying Arcadia, in 2006. The Kochs have denied funding the Tea Party, but their empires far-reaching tentacles in the political arena have spawned a nickname: the Kochtopus. 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. 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. Enuit is an Award-winning provider of ETRM / CTRM solutions worldwide. It owns processing plants, railcars, trucks, river barges and ships. There has always been some concern about the trading firms influence, said Craig Pirrong, a finance professor and commodities specialist at the University of Houston, who points out that some firms have been associated with allegations of market manipulation. Many small producers rely almost entirely on Koch to buy, sell and ship their crude. The hires include Houston-based Shameek Konar, a former managing director with Goldman Sachs (GS) Group Inc. who is chief investment officer overseeing Mercurias corporate development, including the JPMorgan negotiations. 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. Top officials in many other large trading companies began their careers at Glencore. Welcome - Mercuria Corporate Social Responsibility The cost of running JPMorgans commodity business is too high because it comes with the expensive front-office staff and infrastructure an investment bank needs, said Oral Dawe, the former head of JPMorgans Asia-Pacific commodity business who now runs an investment-advisory company in Singapore. Dunand, chairman and chief executive, and Jaeggi, head of global trading, used Mercuria to expand their trading base from crude and oil 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. 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. Grain traders welcomed our offer to lend a diplomatic hand, the ambassador wrote. 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. Wall Street heavyweight JP Morgan is advising Noble on the planned listing. 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. The top trading firms are price makers, said Chris Hinde, editor of London-based Mining Journal. Oil Trader Mercuria's Ownership Structure Revealed in Filing He is flanked in the top investor table by the youthful heads of Glencores major divisions. Most commodity buyers in the world are price takers. And unlike commodities producers, such as U.S. oil giant Exxon Mobil, trading firms dont just make money when prices go up. Dunand and Jaeggi are Mercurias largest shareholders but an employee share ownership scheme holds around 40 percent of the company. 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 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. (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. In April, she and Veyrat told business daily Les Echos that the CEO would be stepping down to make way for Serge Schoen, head of Louis Dreyfus Commodities. Mercuria - Wikipedia That gives its traders the advantage of timely market intelligence. 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. For cost savings, you can change your plan at any time online in the Settings & Account section. [10], Mercuria moves about 1.5million barrels per day (240,000m3/d), of crude and oil products and has upstream and downstream assets ranging from oil reserves in Argentina, Canada and the United States, to oil and products terminals in Europe and China, as well as substantial investment in the bio fuels plants in Germany and the Netherlands. 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. 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. 2. The company's gross profit on sales for the year was $1.86 billion. After dropping out of school he began his career at 15 in a metals scrap yard in the UK. Dunand and Jaeggi first met studying economics at the University of Geneva in the late 1970s. Or this: Glencore in 2010 controlled 55 percent of the worlds traded zinc market, and 36 percent of that for copper. Mercuria will dramatically reduce it, he said. Enuit Hiring, Growing, and Focused on Next Version, Energy One Sees Early Success in 24 by 7 Services Market. Marco Dunand, Mercuria Energy Group Holding SA: Profile and Biography 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. Outside the commodities business, many of these quiet giants who broker the worlds basic goods are little known. 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. Together, they are worth over a trillion dollars in annual revenue and control more than half the world's freely traded commodities. Cognite Data Fusion Deployed for Data Management in Oil & Gas and Power. After a newspaper interview he wrote an open letter in 2008 headlined Gunvor, Putin and me: the truth about a Russian oil trader. The winner? Was Vitol in violation? This gives them a strong opportunity for growth and puts them close to the top players in the league, said Roland Rechtsteiner, a partner at management consultant Oliver Wyman, whos published a series of reports on the industry written with Trafigura co-founder Graham Sharp. A deal with JPMorgan would further challenge Dunand and Jaeggi, who each own 15 percent of Mercurias equity, to integrate the operations into a company that is already growing rapidly. It is also the largest producer of consumer pack edible oils with about 45 percent market share. 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. 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. In its early days it profited by opening a trade route shipping Russian crude to China from Gdansk, Poland. WHO: Koch Industries, founded 1920s by Fred Koch. In early 2007, when world grain prices were surging toward all-time highs, it faced a problem in Ukraine. 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. 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 (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. 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. Independent traders including Mercuria are filling the void. 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 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.