Latest news with #TrafiguraGroup
Business Times
3 days ago
- Business
- Business Times
Trafigura's buyback headache grows amid fresh wave of exits
[LONDON] A fresh wave of senior executive departures is heaping pressure on Trafigura Group's commitment to buy back its employees' shares, just as a profit boom shows signs of faltering. Trafigura has deferred about 30 per cent of the buybacks that were scheduled for this year, according to sources familiar with the matter. Among current and former Trafigura traders, many of whom have the majority of their wealth tied up in the company, conversations have turned to whether the commodity trading giant will delay part of next year's planned repurchases as well, the sources said. Share buybacks are the main way that Trafigura rewards the roughly 1,400 employees that own the company, and have been a conduit for vast riches in recent years. The deferrals mean its current generation of traders face a less certain future, at the same time as some of its rivals are going on aggressive hiring sprees. The departure of a large number of longstanding top executives has piled pressure on the company because it commits to buy their shares back in instalments when they leave. The departures are also coming after a period of extraordinarily high profits, which has inflated the value of the shares due to be bought back. Already in the six months to March, Trafigura spent more money on buybacks than it made in net profit. Trafigura does have wide discretion about how much to spend on buybacks, and a source close to the company said that any decision about next year's buyback would only be made after the end of Trafigura's financial year in September. The source highlighted that the company's group equity of US$16.2 billion at the end of March was well above a self-imposed minimum of US$15 billion, and represented nearly 20 per cent of its total assets, also well above a ratio of 15 per cent that the company considers to be comfortable. Over the past two years, Trafigura's three top executives all retired from their jobs, culminating in only the second CEO transition in the trading house's history. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The departures have continued this year with a fresh wave of senior exits, including Hadi Hallouche, head of Trafigura's downstream oil division, Julien Rolland, head of strategic projects, and Ignacio Moyano, the chief risk officer. More are leaving from the middle ranks of the trading house: former crude trading head for Asia and Europe Daniel Yuen is joining Millenium Management, while head of Asia carbon trading Rushan Pandya is leaving to join Mercuria Energy Group, according to sources familiar with the matter. At the same time, the company's profits are also under pressure. While Trafigura continues to report earnings far higher than any time before 2020, its profits have fallen from the highs of 2022 to 2023 when the market fallout from Russia's full-scale invasion of Ukraine helped lift earnings across the industry. When Trafigura reported half year results in June, it warned of trading headwinds. Sources familiar with the matter said that the company took a hit earlier this year in gas, where prices have tumbled since February. Meanwhile, its sprawling zinc smelting business Nyrstar remains under severe pressure from a tight market for raw materials. The company is also still trying to rebuild its reputation after a series of scandals, ranging from alleged frauds against it in nickel and Mongolia that have cost it more than US$1.5 billion, to a corruption conviction earlier this year in Switzerland. The situation has made for a challenging first few months in the job for Richard Holtum, who took over as the third chief executive officer in Trafigura's history in January. Bloomberg reported last year that he had told staff he wanted Trafigura to focus on making money, and since taking the job, he has expounded a mantra of making the company 'simpler', 'smarter' and 'sharper'. Still, the large buyback bill has not stopped Trafigura investing, with the company forming part of a consortium to buy an oil refinery in France, as well as striking large prepayment deals in copper and iron ore. The trading house also recently returned to the bond market, raising US$500 million earlier this month. 'Trafigura's key financial metrics are at historically high levels, and shareholder returns do not constrain its ability to invest and grow,' the company said in a response to questions. 'In addition, the group maintains near-record liquidity, and its trading performance remains strong.' BLOOMBERG
Bloomberg
17-07-2025
- Business
- Bloomberg
Special Forces Veterans Lead US Bid to Buy Congo Cobalt Miner
A US consortium involving ex-special forces personnel is seeking to acquire Chemaf Resources Ltd., a copper and cobalt producer that has become a symbol of the growing competition for mineral deals between the US and China in the Democratic Republic of Congo. Orion Resource Partners and Virtus Minerals are jointly negotiating the purchase of Chemaf, according to people familiar with the matter. While the US firms are in pole position to acquire Trafigura Group -backed Chemaf, the parties haven't entered into an exclusivity agreement as aspects of the deal are yet to be finalized, one of the people said, asking not to be identified as the talks are private.
Bloomberg
16-07-2025
- Business
- Bloomberg
Trafigura Returns to Bond Market for First Time in Several Years
Trafigura Group, one of the world's largest suppliers of commodities, has returned to the bond market with a $500 million issuance, its first public debt offering in several years. Trafigura has a five-year $500 million bond maturing in September this year, and a €500 million ($581 million) bond for the same tenor coming due in 2026.
Business Times
11-07-2025
- Business
- Business Times
Indonesia detains Trafigura employee in 285 trillion rupiah graft case
[JAKARTA] Indonesia has detained an employee of Trafigura Group along with seven other suspects in a case involving oil procurement by state-owned Pertamina, widening one of the nation's largest corruption investigations in recent decades. The Indonesian attorney general's office (AGO) said late Thursday (Jul 11) that it had held eight suspects, and was pursuing another believed to be overseas. They have been accused of alleged irregularities in oil purchases between 2018 and 2023, including actions related to export and import, vessel and terminal leasing, and product compensation arrangements. The suspects include an employee of commodity trader Trafigura Group who was a business development manager during the period in question. There are also two individuals linked to other private companies, as well as six people who were executives at Pertamina and its subsidiaries at the time, prosecutors said. The AGO identified them only by their initials and job titles. A spokesperson for Trafigura said that an employee of its Indonesian subsidiary had been cooperating with Indonesian authorities before being named a suspect in the case. The company is providing legal representation while awaiting further details about the allegations. A spokesperson for Pertamina said in a text message that the firm would respect the ongoing legal process and cooperate with authorities. Suspects have not been officially charged. The AGO can hold suspects for an initial detention period of 20 days, after which it must file charges, seek an extension or release those held. Abdul Qohar, a director at the AGO, said at a press briefing that prosecutors estimated state losses from the graft identified in the case at around 285 trillion rupiah (S$22.5 billion). This is up from the 193 trillion rupiah reported in February, after taking into consideration the broader impact on the economy. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The high-profile investigation represents a credibility test for President Prabowo Subianto, who has pledged to crack down on corruption in the country's sprawling state-owned enterprises. South-east Asia's largest economy ranks 99th out of 180 countries in Transparency International's 2024 Corruption Perceptions Index. AGO spokesperson Harli Siregar said authorities have detained over a dozen executives from Pertamina, its subsidiaries, and trading companies since February as part of a broader probe that has included the questioning of more than 250 witnesses. Prosecutors alleged that detainees had encouraged refineries to import crude and oil products at marked-up prices via opaque trading arrangements. In May, investigators also asked a number of several Singapore-based oil traders to meet in the city-state for questioning. The island is a storage hub for refined oil products, making it a vital link in the fuel supply chain. Qohar said the AGO was working with Indonesian legal representatives overseas to track down the final suspect, with a focus on Singapore. 'We've received information that the individual is there,' he said. 'We're taking all necessary steps to locate and bring him back.' BLOOMBERG
Business Times
11-07-2025
- Business
- Business Times
Indonesia detains Trafigura employee in US$17 billion graft case
[JAKARTA] Indonesia has detained an employee of Trafigura Group along with seven other suspects in a case involving oil procurement by state-owned PT Pertamina, widening one of the nation's largest corruption investigations in recent decades. The Indonesian attorney general's office (AGO) said late Thursday (Jul 11) that it had held eight suspects, and was pursuing another believed to be overseas. They have been accused of alleged irregularities in oil purchases between 2018 and 2023, including actions related to export and import, vessel and terminal leasing, and product compensation arrangements. The suspects include an employee of commodity trader Trafigura Group who was a business development manager during the period in question, as well as two individuals linked to other private companies and six people who were executives at Pertamina and subsidiaries at the time, prosecutors said. The attorney general's office identified them only by their initials and job titles. A spokesperson for Trafigura said that an employee of its Indonesian subsidiary had been cooperating with Indonesian authorities before being named a suspect in the case. The company is providing legal representation while awaiting further details about the allegations. A spokesperson for Pertamina said in text message that the firm would respect the ongoing legal process and cooperate with authorities. Suspects have not been officially charged. The AGO can hold suspects for an initial detention period of 20 days, after which it must file charges, seek an extension or release those held. Prosecutors estimated state losses from the graft identified in the case at around 285 trillion rupiah (S$22.5 billion), up from 193 trillion rupiah reported around detentions in February, after taking into consideration the broader impact on the economy, Abdul Qohar, a director at the AGO, said at a press briefing. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The high-profile investigation represents a credibility test for President Prabowo Subianto, who has pledged to crack down on corruption in the country's sprawling state-owned enterprises. South-east Asia's largest economy ranks 99th out of 180 countries in Transparency International's 2024 Corruption Perceptions Index. Authorities have now detained more than a dozen executives from Pertamina, its subsidiaries, and trading companies since February as part of a broader probe that has included the questioning of more than 250 witnesses, AGO spokesperson Harli Siregar said. Prosecutors in February alleged detainees had encouraged refineries to import crude and oil products at marked-up prices via opaque trading arrangements. In May, investigators also asked a number of several Singapore-based oil traders to meet in the city-state for questioning. The island is a storage hub for refined oil products, making it a vital link in the fuel supply chain. Qohar said the attorney general's office was working with Indonesian legal representatives overseas to track down the final suspect, with a focus on neighbouring Singapore. 'We've received information that the individual is there,' he said. 'We're taking all necessary steps to locate and bring him back.' BLOOMBERG
