Mercuria

Last updated

Mercuria Energy Group Ltd.
FormerlyJ&S Group
Company type Private
Industry Commodity
Founded2004;20 years ago (2004)
FoundersMarco Dunand (CEO)
Daniel Jaeggi (president)
Headquarters Geneva, Switzerland
Number of locations
37
Area served
Global
ProductsRaw materials
Energy products
RevenueUS$174 billion (2022)
  • Increase2.svg US$2.98 billion (2022)
[1]
Number of employees
1,200 (2020)
Website www.mercuria.com

Mercuria Energy Group Ltd. is a Cypriot-domiciled Swiss [2] 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 [3] and agricultural products. [4] 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. [5] The group operates in 50 different countries. [6]

Contents

Mercuria was started in 2004 by Marco Dunand and Daniel Jaeggi, then executives at Phibro, the commodities trader sold by Citigroup to Occidental Petroleum in 2009. [7] The company focused mostly on oil trading until 2007. [8] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski. [9] [10] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today. [11]

Operations

Mercuria, in 2017, moved about 1.5 million barrels per day (240,000 m3/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. [12]

Its subsidiaries include Navitas Energy in Canada [13] and Vesta Terminal Services in Europe, [14] which operates port logistics, storage and processing facilities in the Netherlands, Estonia, Belgium, and Germany. Mercuria, the former owner of Vesta Terminal, entered into a joint venture with Sinopec by selling 50% of the terminals in 2013. [15]

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. [16] The company told Bloomberg that half of its portfolio wiould be in renewables in the next five years, and that it had already committed to invest over $2 billion into the energy transition. [16]

History

As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group [17] and Electrabel in London. [18] In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC. [19] The Miami, Florida-based MGM International Group is a developer of international projects to reduce greenhouse gas emissions.

In 2014, Mercuria bought part of JPMorgan's physical commodities trading business for a reported US$3.5 billion. [20] [21] Magid Shenouda, the former co-head of commodities trading at Goldman Sachs Group Inc, joined Mercuria as a shareholder, global head of trading and deputy CEO. [22]

In January 2016, Mercuria announced that ChemChina had bought a 12% stake in the company. [23]

In 2018, Mercuria agreed to acquire 30% of Aegean Marine Petroleum. [24] After Aegean Marine was reorganized, [25] [26] in 2019, Mercuria acquired bankrupt Aegean Marine Petroleum Network Inc and restructured the company to operate as Minerva Bunkering, a physical supplier of marine fuels and a fully-owned subsidiary of Mercuria Energy Group Limited. [27] [28] [29] [30]

In 2020, Mercuria earned $786 million with revenues in line with commodity prices to about $85 billion. The company's gross profit on sales for the year was $1.86 billion. [31] [32] In 2022, the company experienced record profits due to volatility in the aftermath of Russia's invasion of Ukraine. [33]

In 2021, Mercuria bought the clean energy specialist Beyond6 from HC2Holdings for $169 million. [34] In November 2022, it was announced Beyond6 has been acquired by the Chevron Corporation subsidiary, Chevron USA Inc. [35] In April 2024, Bloomberg reported that Mercuria Energy Group was preparing to start trading in Japan’s physical power market. [36] In June 2024, the company was reportedly seeking to expand in the metals sector. [37]

Subsidiaries

Further reading

Related Research Articles

<span class="mw-page-title-main">Sinopec</span> Chinese oil and gas enterprise

China Petroleum and Chemical Corporation, or Sinopec, is a Chinese oil and gas enterprise based in Beijing. It is listed in Hong Kong and also trades in Shanghai.

<span class="mw-page-title-main">Singapore Petroleum Company</span> Singaporean oil company

Singapore Petroleum Company Limited, in short SPC, is a Singaporean multinational oil and gas company. It is involved in the exploration and production of petroleum, refining, trading and petroleum product distribution.

Louis Dreyfus Company B.V. (LDC) is a French merchant firm that is involved in agriculture, food processing, international shipping, and finance. The company owns and manages hedge funds, ocean vessels, develops and operates telecommunications infrastructures, and it is also involved in real estate development, management and ownership. Along with Archer Daniels Midland, Bunge, and Cargill, Louis Dreyfus is one of the four "ABCD" companies that dominate world agricultural commodity trading.

Trafigura Group Pte. Ltd. is a multinational commodities company domiciled in Singapore with major regional hubs in Geneva, Houston, Montevideo and Mumbai, founded in 1993. The company trades in base metals and energy. It is the world's largest private metals trader and second-largest oil trader having built or purchased stakes in pipelines, mines, smelters, ports and storage terminals.

Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore's oil and gas head office is in London and its registered office is in Saint Helier, Jersey. By some estimates, it is the world's largest commodity trader, and among the world's largest companies.

<span class="mw-page-title-main">Abu Dhabi National Oil Company</span> UAE state-owned oil company

The Abu Dhabi National Oil Company, known by its acronym ADNOC, is the state-owned oil company of the United Arab Emirates (UAE).

<span class="mw-page-title-main">Mitsui & Co.</span> Japanese corporation

Mitsui & Co., Ltd. is one of the largest sogo shosha in Japan; it is part of the Mitsui Group.

<span class="mw-page-title-main">Phibro</span> International physical commodities trading firm

Phibro is an international physical commodities trading firm. Phibro trades in crude oil, oil products, natural gas, precious and base metals, agricultural products, commodity-related equities, and other products. Phibro’s headquarters are located in Stamford, Connecticut.

Dimitris Melissanidis is a Greek business shipping and oil tycoon, and one of the country's leading businessmen. Melissanidis is in the top ten rich list of Greek entrepreneurs ranking in 6th place. He is most known for his time as owner of Greek football team AEK Athens F.C. and owner of Greek oil company Aegean Oil.

<span class="mw-page-title-main">Gunvor</span> Cypriot-registered Swiss commodity trading company

Gunvor Group Ltd is a multinational energy commodities trading company registered in Cyprus, with its main trading office in Geneva, Switzerland. Gunvor also has trading offices in Singapore, Houston, Stamford, London, Calgary, and Dubai, with a network of representative offices around the globe. The company operates in the trade, transport, storage and optimization of petroleum and other energy products, as well as having investments in oil terminal and port facilities. Its operations consist of securing crude oil and petroleum products upstream and delivering it to market via pipelines and tankers. Gunvor has a separate company, Nyera, set up in 2021 to invest in renewable energy sources. It is run by energy transition director Fredrik Tornqvist.

Vitol is a Swiss-based Dutch multinational energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. Though trading, logistics, and distribution are at the core of its business, these are notably complemented by refining, shipping, terminals, exploration and production, power generation, and retail businesses. Vitol has over 40 offices worldwide, with its largest operations in Geneva, Houston, London, and Singapore.

Sucden is a French-based commodity broker of soft commodities and other financial products headquartered in Paris. The firm started as a sugar broker and is now amongst the world leaders with a market share of around 15% in volume, or 9.5 million tonnes. It has offices in a number of countries around the world, including London and Hong Kong.

Olufemi Peter Otedola is a Nigerian businessman and philanthropist. He is the former chairman of Forte Oil PLC, and is the current executive chairman of Geregu Power PLC.

<span class="mw-page-title-main">Marex (company)</span> UK-based tech-enabled liquidity hub

Marex is a UK-based financial services company. The company's clients are predominantly commodity producers and consumers, banks, hedge funds, asset managers, broking houses, commodity trading advisors and professional traders. Marex currently has over 1,800 employees and 36 offices across Europe, USA and APAC.

<span class="mw-page-title-main">Minerva Bunkering</span> Petroleum refining and trading company

Minerva Bunkering is a supplier of marine fuels and bunkering services headquartered in Geneva, Switzerland. It was founded in 2019 as a wholly owned subsidiary of Mercuria Energy Group. It quickly absorbed the larger Aegean Marine Petroleum Network (AMPNI), a public company listed on the New York Stock Exchange, when Aegean was acquired by Mercuria, and Minerva Bunkers, another subsidiary of Mercuria founded in 2014

Pierre Andurand is a French businessman and hedge fund manager. His funds have approximately $2bn in assets under management and have produced cumulative returns of between 900 and 1,300% for investors since 2008. He is also the majority shareholder of the international kickboxing league Glory.

Optiver Holding B.V. is a proprietary trading firm and market maker for various exchange-listed financial instruments. Its name derives from the Dutch optieverhandelaar, or "option trader". The company is privately owned. Optiver trades listed derivatives, cash equities, exchange-traded funds, bonds, and foreign exchange.

VARO Energy (VARO) is a diversified energy company headquartered in Zug, Switzerland with a presence in twenty-six countries. It operates across the energy value chains in manufacturing, storage and distribution, marketing and trading, with businesses in conventional energies and sustainable energies. In 2022, VARO announced its “ONE VARO Transformation strategy” which focuses on conventional and sustainable energies, with the latter based on five strategic growth pillars - biofuels, green hydrogen, biomethane & bio-LNG, nature-based carbon removals and e-mobility. VARO Energy's shareholders consist of the global investment firm, Carlyle Group and the global energy and commodities company Vitol. The company CEO is Dev Sanyal.

<span class="mw-page-title-main">2Rivers</span> Dubai-based commodity trader

2Rivers, formerly Coral Energy, is a Dubai-based oil trading company engaged in the sale and export of Russian crude oil and petroleum products. 2Rivers was founded by Azerbaijani citizen Tahir Gadir oghlu Garayev in 2010. 2Rivers, according to journalistic investigations, has a close relationship with Igor Sechin and Rosneft. Since 2022, 2Rivers has quietly grown to become the largest trader circumventing Western sanctions on Russian crude and petroleum exports, mainly from Rosneft. 2Rivers operates through a web of companies that appear to be unaffiliated, but are controlled by the 2Rivers’ executive team. This includes dozens of trading companies established in the DMCC freezone of the UAE, as well as ship management and operations companies.

References

  1. ↑ Payne, Julia (March 21, 2023). "Mercuria 2022 profit more than doubles to a record high -document". Reuters . Retrieved October 26, 2024.
  2. ↑ "Oil Traders and Cyprus". Financial Times. 26 March 2013. Retrieved 3 August 2021.
  3. ↑ "China slowdown spells end of big payday for iron ore traders". Reuters . 10 September 2013. Retrieved 14 November 2017.
  4. ↑ "RPT-Oil traders diversify into food and metals in quest for profits". Reuters . 18 June 2013. Retrieved 14 November 2017.
  5. ↑ "Documents & downloads". www.mercuria.com.
  6. ↑ "Working at Mercuria". www.mercuria.com.
  7. ↑ Guerrera, Francisco (15 February 2009). "Citi sells Phibro after government pressure". Financial Times. Retrieved 3 August 2021.
  8. ↑ "Oil trading". risk.net. June 2016. Retrieved November 15, 2017.
  9. ↑ Hoffman, Andy (Aug 31, 2018). "Oil Trader Mercuria's Ownership Structure Revealed in Filing". bnnbloomberg.ca.
  10. ↑ Hume, Neil (September 4, 2018). "Top three executives lift stake in Mercuria". Financial Times.
  11. ↑ "Polskie obywatelstwo i fortuna zbita na ropie" [The Polish government and fortune tellers]. Forbes (in Polish). 23 May 2016. Retrieved 14 November 2017.
  12. ↑ "Oul and Mining Areas". proshareng.com. Retrieved November 15, 2017.
  13. ↑ "Oil and Gas, PetroLama Energy Canada Inc. Calgary, AB Home". Navitasenergy.com. Retrieved 14 November 2017.
  14. ↑ "Home - Vesta Terminals". Vestaterminals.com. Retrieved 14 November 2017.
  15. ↑ "Prior notification of a concentration (Case COMP/M.6807 — Mercuria Energy Asset Management/Sinomart KTS Development/Vesta Terminals) : (Text with EEA relevance)" (PDF). Eur-lex.europa.eu. Retrieved 14 November 2017.
  16. 1 2 Hoffman, Andy; Dezem, Vanessa (16 June 2021). "Oil traders say banks are demanding green targets for loans" . Bloomberg . Retrieved 2021-07-28.
  17. ↑ "Louis Dreyfus metal traders, investment managers will join Mercuria Energy". Metalbulletin.com. Retrieved 14 November 2017.
  18. ↑ "Larnaca, Cyprus". Topix.com. Retrieved 14 November 2017.
  19. ↑ "Mercuria Energy Group Ltd buys MGM International from Morgan Stanley - CEOWORLD magazine". ceoworld.biz. 3 November 2010. Retrieved 14 November 2017.
  20. ↑ Kent, Sarah; Chaudhuri, Saabira (2014-10-03). "J.P. Morgan Completes Sale of Some Commodities Operations to Mercuria". Wall Street Journal . Retrieved 14 November 2017.
  21. ↑ Zhdannikov, Dmitry (19 March 2014). "JPMorgan sells physical commodities unit to Mercuria for $3.5 billion". Reuters . Retrieved 2021-08-03.
  22. ↑ "Mercuria Energy Hires Magid Shenouda". Wall Street Journal.
  23. ↑ Hoffman, Andy; Blas, Javier (18 January 2016). "ChemChina Acquires 12% Stake in Swiss Commodity Trader Mercuria" . Bloomberg . Retrieved 2021-08-03.
  24. ↑ Mercuria Energy Completes Aegean Marine Petroleum $1B Refi, ABF Journal, 6 July 2018
  25. ↑ "Aegean Marine Is Now Minerva Bunkering". Ship & Bunkering. 2019-04-04. Retrieved 2019-09-12.
  26. ↑ "Restructured Aegean Marine Becomes Minerva Bunkering". World Maritime News. 2019-04-05. Retrieved 2019-09-12.
  27. ↑ Payne, Julia (2019-03-27). "Energy trader Mercuria gets green light to buy Aegean Marine Petroleum". Reuters. Retrieved 2021-08-04.
  28. ↑ "Aegean Marine Petroleum Network Inc. Reorganizes as Minerva Bunkering". www.mercuria.com. Retrieved 2021-08-04.
  29. ↑ Ship; bunker.com. "Aegean Marine is Now Minerva Bunkering". Ship & Bunker. Retrieved 2021-08-04.
  30. ↑ "Restructured Aegean Marine Becomes Minerva Bunkering". Offshore Energy. 2019-04-05. Retrieved 2021-08-04.
  31. ↑ Payne, Julia (30 June 2021). "Energy trader Mercuria posts record profit for volatile 2020". Reuters. Retrieved 3 August 2021.
  32. ↑ Hoffman, Andy (9 March 2021). "Trader Buys $36 Million of Copper and Gets Painted Rocks Instead" . Bloomberg . Retrieved 30 June 2021.
  33. ↑ Desai, Pratima (September 27, 2024). "Focus: Mercuria blazes trail for energy traders eyeing a metals bonanza". Reuters . Retrieved October 26, 2024.
  34. ↑ Taylor, Ian (7 January 2021). "Mercuria Buys Clean Energy Specialist Beyond6". Bunkerspot.
  35. ↑ "Chevron to acquire full ownership of Beyond6 CNG Fuelling Network". Oilfield Technology. 2022-11-18. Retrieved 2022-11-18.
  36. ↑ Mercuria joins trader push into Japan's spot electricity market, Bloomberg, 5 April 2024
  37. ↑ Energy trader Mercuria hires Goldman Sachs' Snowdon for metals team, Reuters, 14 June 2024
  38. ↑ "Mercuria Commodities Canada Corp. - Relationship Science". relationshipscience.com. Retrieved 2021-08-04.
  39. ↑ "Mercuria Energy Trading B.V." Dun & Bradstreet.
  40. ↑ "Mercuria Grows its Global Metals Trading Business". www.mercuria.com. Retrieved 2021-08-04.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.