Gunvor Shakes Up Management After Crude Oil Buying and selling Losses

(Bloomberg) — Gunvor Group is renewing its management crew after taking some hits in crude oil buying and selling final 12 months together with a bullish North Sea play that went mistaken, in accordance with Chief Government Officer Torbjörn Törnqvist.

The shake-up at Gunvor is the most recent signal {that a} increase interval for commodity merchants over the previous few years is giving solution to a extra combined setting, the place range-bound oil markets specifically are hitting income for merchants who thrive on volatility. Nonetheless, income throughout the trade proceed to be larger than earlier than the coronavirus pandemic and the invasion of Ukraine supercharged earnings.

Törnqvist mentioned in an interview that Gunvor’s income within the second half of 2024 had been decrease than the primary half, however that the full-year outcome would nonetheless be one of many 4 or 5 greatest within the firm’s historical past. Gunvor’s crude oil buying and selling had been worthwhile, he mentioned, however “there have been some elements of our crude oil buying and selling that didn’t do what they need to do, so it’s regular we alter.”

Gunvor, a non-public firm majority-owned by Törnqvist, is because of report its 2024 outcomes to bondholders within the coming weeks. First-half income had been $417 million, down round 48% from a 12 months earlier.

A number of senior buying and selling executives have left Gunvor in latest months, together with most lately co-head of buying and selling Stephane Degenne, Bloomberg reported this week. Different latest departures embrace head of crude buying and selling Benoit Roulon.

Törnqvist mentioned the individuals who had been leaving had been doing so “on excellent phrases with the corporate.”

“It’s a reset and setting the course for the long run,” he mentioned. The corporate can also be making new hires, akin to Gary Pedersen, who lately joined from Millennium Administration LLC as president and CEO of Americas.

Gunvor raised eyebrows within the North Sea crude market final summer time by bidding up grades of crude that make up the important thing Dated Brent benchmark.

Törnqvist mentioned the bullish North Sea play “didn’t go in accordance with plan.” Requested what the plan had been, he replied: “To generate profits.”

He highlighted Gunvor’s North American oil-trading enterprise as an space of energy, saying the corporate was one of many largest exporters of crude from the US. He mentioned that an $800 million deal to finance the federal government of Gabon’s buy of oil producer Assala Vitality from Carlyle Group had been “one of many good tales” for Gunvor.