Mercuria
{{Short description|Multinational commodity trading company}}
{{for|the gastropod|Mercuria (gastropod)}}
{{Infobox company
| name = Mercuria Energy Group Ltd.
| former_names = J&S Group
| logo = Mercuria-logo.PNG
| type = Private
| foundation = {{start date and age|2004}}
| founders = Marco Dunand (CEO)
Daniel Jaeggi (president)
| location = Geneva, Switzerland
| industry = Commodity
| num_locations = 37
| area_served = Global
| products = Raw materials
Energy products
| revenue = US$35.4 million (2024){{Cite web |title=MERCURIA HOLDINGS CO., LTD. Financials |website=UK Marketscreener |url=https://uk.marketscreener.com/quote/stock/MERCURIA-HOLDINGS-CO-LTD-124600153/finances-income-statement/ |access-date=2025-05-02}}
| net_income = {{Unbulleted list|{{Decrease}} US$2.09 billion (2024)}}{{Cite web |title=Mercuria Posts $2.09 Billion Profit Amid Declining Commodity Volatility |website=Nasdaq |url=https://www.nasdaq.com/articles/mercuria-posts-209-billion-profit-amid-declining-commodity-volatility |access-date=2025-05-02}}
| num_employees = 1,200 (2020)
| homepage = {{url|https://www.mercuria.com/}}
}}
Mercuria Energy Group Ltd. is a Cypriot-domiciled Swiss{{Cite web|date=26 March 2013|title=Oil Traders and Cyprus|url=https://www.ft.com/content/2e3ad5d0-9572-11e2-a4fa-00144feabdc0#axzz2SW05YXsE|access-date=3 August 2021|newspaper=Financial Times}} 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{{cite web|url=https://www.reuters.com/article/ironore-trading/china-slowdown-spells-end-of-big-payday-for-iron-ore-traders-idUSL4N0GZ0WU20130910|title=China slowdown spells end of big payday for iron ore traders|date=10 September 2013|access-date=14 November 2017|work=Reuters}} and agricultural products.{{cite web|url=https://www.reuters.com/article/traders-commodities/rpt-oil-traders-diversify-into-food-and-metals-in-quest-for-profits-idUSL5N0EU0ZU20130618|title=RPT-Oil traders diversify into food and metals in quest for profits|date=18 June 2013|access-date=14 November 2017|work=Reuters}} 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.{{Cite web|title=Documents & downloads|url=https://www.mercuria.com/media-room/documents-and-downloads|website=www.mercuria.com}} The group operates in 50 countries.{{Cite web|url=https://www.mercuria.com/our-people/working-at-mercuria|title=Working at Mercuria|website=www.mercuria.com}}
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.{{Cite news|last=Guerrera|first=Francisco|date=15 February 2009|title=Citi sells Phibro after government pressure|work=Financial Times|url=https://www.ft.com/content/331eb7a2-b4ec-11de-8b17-00144feab49a|access-date=3 August 2021}} The company focused mostly on oil trading until 2007.{{cite web|title=Oil trading|date=June 2016 |url=https://www.risk.net/energy-risk/news/2459769/goldman-hires-new-co-head-of-commodities-trading|access-date=November 15, 2017|publisher=risk.net}} Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski.{{Cite web |last=Hoffman |first=Andy |date=Aug 31, 2018 |title=Oil Trader Mercuria's Ownership Structure Revealed in Filing |url=https://www.bnnbloomberg.ca/oil-trader-mercuria-s-ownership-structure-revealed-in-filing-1.1131811 |website=bnnbloomberg.ca}}{{Cite web |last=Hume |first=Neil |date=September 4, 2018 |title=Top three executives lift stake in Mercuria |url=https://www.ft.com/content/b3d2f7d0-b05c-11e8-99ca-68cf89602132 |website=Financial Times}} They and their affiliates joined as founders of Mercuria, and they remain as shareholders today.{{cite web|date=23 May 2016|title=Polskie obywatelstwo i fortuna zbita na ropie|trans-title=The Polish government and fortune tellers|url=http://www.forbes.pl/grzegorz-jankilewicz-slawomir-smolokowski-jak-powstala-mercuria,artykuly,204880,1,4.html|access-date=14 November 2017|work=Forbes|language=Polish}}
Operations
Mercuria, in 2017, moved about {{convert|1.5|e6oilbbl/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.{{cite web|title=Oul and Mining Areas|url=https://www.proshareng.com/news/MERGERS%20&%20AQUISITIONS/Forte-Oil-sells-17Percent-Equity-to-Mercuria-Energy-Group--receives-regulatory-approvals/28679|access-date=November 15, 2017|publisher=proshareng.com}}
Its subsidiaries include Navitas Energy in Canada{{cite web|title=Oil and Gas, PetroLama Energy Canada Inc. Calgary, AB Home|url=http://www.navitasenergy.com/|access-date=14 November 2017|website=Navitasenergy.com}} and Vesta Terminal Services in Europe,{{cite web|title=Home - Vesta Terminals|url=http://www.vestaterminals.com/|access-date=14 November 2017|website=Vestaterminals.com}} 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.{{cite web|title=Prior notification of a concentration (Case COMP/M.6807 — Mercuria Energy Asset Management/Sinomart KTS Development/Vesta Terminals) : (Text with EEA relevance)|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2013:037:0035:0035:EN:PDF|access-date=14 November 2017|website=Eur-lex.europa.eu|format=PDF}}
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.{{Cite news|last1=Hoffman|first1=Andy|last2=Dezem|first2=Vanessa|date=16 June 2021|title=Oil traders say banks are demanding green targets for loans|work=Bloomberg|url=https://www.bloomberg.com/news/articles/2021-06-16/oil-trader-cfos-say-banks-are-demanding-green-targets-for-loans|url-access=subscription|access-date=2021-07-28}} The company told Bloomberg that half of its portfolio would be in renewables in the next five years, and that it had already committed to invest over $2 billion into the energy transition.
History
As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group{{cite web|url=http://www.metalbulletin.com/Article/2753880/Louis-Dreyfus-metal-traders-investment-managers-will-join-Mercuria-Energy.html|title=Louis Dreyfus metal traders, investment managers will join Mercuria Energy|website=Metalbulletin.com|access-date=14 November 2017}} and Electrabel in London.{{cite web|url=http://www.topix.com/cy/larnaca/2007/09/mercuria-hires-three-traders-from-electrabel-to-set-up-a-gas-power-desk|title=Larnaca, Cyprus|website=Topix.com|access-date=14 November 2017}} In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC.{{cite web|title=Mercuria Energy Group Ltd buys MGM International from Morgan Stanley - CEOWORLD magazine|url=http://ceoworld.biz/opinion/mercuria-energy-group-ltd-buys-mgm-international-from-morgan-stanley/|access-date=14 November 2017|website=ceoworld.biz|date=3 November 2010 }} 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.{{cite news|last1=Kent|first1=Sarah|last2=Chaudhuri|first2=Saabira|date=2014-10-03|title=J.P. Morgan Completes Sale of Some Commodities Operations to Mercuria|newspaper=Wall Street Journal|url=https://www.wsj.com/articles/mercuria-announces-close-of-j-p-morgan-commodities-deal-1412356075|access-date=14 November 2017}}{{Cite news|last=Zhdannikov|first=Dmitry|date=19 March 2014|title=JPMorgan sells physical commodities unit to Mercuria for $3.5 billion|work=Reuters|url=https://www.reuters.com/article/us-jpmorgan-mercuria/jpmorgan-sells-physical-commodities-unit-to-mercuria-for-3-5-billion-idUSBREA2I0LG20140319|access-date=2021-08-03}} 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.{{Cite web|title=Mercuria Energy Hires Magid Shenouda|url=https://www.wsj.com/articles/SB10001424052702303851804579557382090216444|website=Wall Street Journal}}
In January 2016, Mercuria announced that ChemChina had bought a 12% stake in the company.{{Cite news|last1=Hoffman|first1=Andy|last2=Blas|first2=Javier|date=18 January 2016|title=ChemChina Acquires 12% Stake in Swiss Commodity Trader Mercuria|work=Bloomberg|url=https://www.bloomberg.com/news/articles/2016-01-18/chemchina-acquires-12-stake-in-swiss-commodity-trader-mercuria|url-access=subscription|access-date=2021-08-03}}
In 2018, Mercuria agreed to acquire 30% of Aegean Marine Petroleum.{{Citation |date=6 July 2018 |title=Mercuria Energy Completes Aegean Marine Petroleum $1B Refi |publisher=ABF Journal |url=https://www.abfjournal.com/dailynews/mercuria-energy-completes-aegean-marine-petroleum-1b-refi/|access-date=}} After Aegean Marine was reorganized,{{cite news|date=2019-04-04|title=Aegean Marine Is Now Minerva Bunkering|work=Ship & Bunkering|url=https://shipandbunker.com/news/world/938153-aegean-marine-is-now-minerva-bunkering|accessdate=2019-09-12}}{{cite news|date=2019-04-05|title=Restructured Aegean Marine Becomes Minerva Bunkering|work=World Maritime News|url=https://worldmaritimenews.com/archives/274560/restructured-aegean-marine-becomes-minerva-bunkering/|accessdate=2019-09-12}} 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.{{Cite news|last=Payne|first=Julia|date=2019-03-27|title=Energy trader Mercuria gets green light to buy Aegean Marine Petroleum|language=en|work=Reuters|url=https://www.reuters.com/article/us-mercuria-aegean-marine-idUSKCN1R80OF|access-date=2021-08-04}}{{Cite web|title=Aegean Marine Petroleum Network Inc. Reorganizes as Minerva Bunkering|url=https://www.mercuria.com/media-room/business-news/aegean-marine-petroleum-network-inc-reorganizes-minerva-bunkering|access-date=2021-08-04|website=www.mercuria.com}}{{Cite web|last1=Ship|last2=bunker.com|title=Aegean Marine is Now Minerva Bunkering|url=https://shipandbunker.com/news/world/938153-aegean-marine-is-now-minerva-bunkering|access-date=2021-08-04|website=Ship & Bunker}}{{Cite web|date=2019-04-05|title=Restructured Aegean Marine Becomes Minerva Bunkering|url=https://www.offshore-energy.biz/restructured-aegean-marine-becomes-minerva-bunkering/|access-date=2021-08-04|website=Offshore Energy|language=en-US}}
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.{{Cite news|last=Payne|first=Julia|date=30 June 2021|title=Energy trader Mercuria posts record profit for volatile 2020|work=Reuters|url=https://www.reuters.com/business/exclusive-energy-trader-mercuria-posts-record-profit-volatile-2020-2021-06-30/|access-date=3 August 2021}}{{cite news|last=Hoffman|first=Andy|date=9 March 2021|title=Trader Buys $36 Million of Copper and Gets Painted Rocks Instead|work=Bloomberg|url=https://www.bloomberg.com/news/articles/2021-03-09/trader-buys-36-million-of-copper-and-gets-painted-rocks-instead|url-access=subscription|access-date=30 June 2021}} In 2022, the company experienced record profits due to volatility in the aftermath of Russia's invasion of Ukraine.{{cite news |last1=Desai |first1=Pratima |title=Focus: Mercuria blazes trail for energy traders eyeing a metals bonanza |url=https://www.reuters.com/markets/commodities/mercuria-blazes-trail-energy-traders-eyeing-metals-bonanza-2024-09-27/ |access-date=October 26, 2024 |publisher=Reuters |date=September 27, 2024}}
In 2021, Mercuria bought the clean energy specialist Beyond6 from HC2Holdings for $169 million.{{Cite news|last=Taylor|first=Ian|date=7 January 2021|title=Mercuria Buys Clean Energy Specialist Beyond6|work=Bunkerspot|url=https://www.bunkerspot.com/global/52166-global-mercuria-buys-clean-energy-specialist-beyond6}} In November 2022, it was announced Beyond6 has been acquired by the Chevron Corporation subsidiary, Chevron USA Inc.{{Cite web |date=2022-11-18 |title=Chevron to acquire full ownership of Beyond6 CNG Fuelling Network |url=https://www.oilfieldtechnology.com/digital-oilfield/18112022/chevron-to-acquire-full-ownership-of-beyond6-cng-fuelling-network/ |access-date=2022-11-18 |website=Oilfield Technology |language=en}} In April 2024, Bloomberg reported that Mercuria Energy Group was preparing to start trading in Japan’s physical power market.{{Citation |last= |first= |date=5 April 2024 |title=Mercuria joins trader push into Japan's spot electricity market |publisher=Bloomberg |url=https://www.japantimes.co.jp/business/2024/04/05/companies/mercuria-japan-spot-power-market/ |access-date=}} In June 2024, the company was reportedly seeking to expand in the metals sector.{{Citation |date=14 June 2024 |title=Energy trader Mercuria hires Goldman Sachs' Snowdon for metals team |publisher=Reuters|url=https://www.reuters.com/business/energy/energy-trader-mercuria-hires-goldman-sachs-snowdon-metals-team-2024-06-14/ |access-date=}}
Subsidiaries
- Mercuria Commodities Canada Corporation{{Cite web|title=Mercuria Commodities Canada Corp. - Relationship Science|url=https://relationshipscience.com/organization/mercuria-commodities-canada-corp-150206648|access-date=2021-08-04|website=relationshipscience.com}}
- Minerva Bunkering
- Mercuria Energy Netherlands B.V.{{Cite web|title=Mercuria Energy Trading B.V.|url=https://www.dnb.com/business-directory/company-profiles.mercuria_energy_trading_bv.d1fc63fc989e9bacea812291c5aab09d.html|website=Dun & Bradstreet}}
- Unico Investments B.V.
- Mercuria Energy Group Holding
- Mercuria Investments US
- Mercuria Energy Asset Management B.V.
- Mercuria (China) Metal Resources Co Ltd{{Cite web|title=Mercuria Grows its Global Metals Trading Business|url=https://www.mercuria.com/media-room/business-news/mercuria-grows-its-global-metals-trading-business|access-date=2021-08-04|website=www.mercuria.com}}
- J.P. Morgan Energy Europe Ltd
- Upstream Capital Partners VI Limited
- AU Energy B.V.
- Mercuria Energy Group Holding SA
- Mercuria UK Llp
Further reading
- {{cite journal | last1=Goldthau | first1=Andreas | last2=Hughes | first2=Llewelyn | title=Saudi on the Rhine? Explaining the emergence of private governance in the global oil market | journal=Review of International Political Economy | volume=28 | issue=5 | date=2020 | issn=0969-2290 | doi=10.1080/09692290.2020.1748683 | pages=1410–1432}}
References
{{Reflist}}
External links
- [http://www.mercuria.com Mercuria Energy Website]
Category:Oil and gas companies of Switzerland
Category:Swiss companies established in 2004
Category:Non-renewable resource companies established in 2004