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The UAE’s state-run oil giant is reportedly considering a full or partial acquisition of Gunvor Group commodity trading house, both Bloomberg and Reuters report, citing unnamed sources.
The UAE’s Abu Dhabi National Oil Co (ADNOC) has already undergone early-stage talks about buying the commodities house, according to Bloomberg, to merge Adnoc’s trading arm with Gunvor.
Reuters likewise cites an unnamed source as saying that talks have been held for the acquisition of Gunvor Group or a stake in the trading house.
Neither ADNOC nor Gunvor have made any statements about alleged early-stage talks, and sources cited by Bloomberg and Reuters caution that such a deal would take months to flesh out.
The value of privately-held Gunvor is unknown; however, Bloomberg notes that the company valued its equity at around $4 billion as of late June and reported over $840 million in H2 2022 profits.
Previously, Bloomberg noted that the wealth of Torbjorn Tornqvist, Gunvor’s co-founder and CEO, soared to $3.7 billion following Russia’s invasion of Ukraine. That figure represents close to a doubling of Tornqvist’s wealth since early 2021.
“The uprooting of normal supply chains following Russia’s invasion of Ukraine and subsequent market upheavals have provided additional support to oil traders like Gunvor,” Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank, told Bloomberg Wealth.
Energy companies and commodities traders have been raking in huge profits as well on U.S. natural gas sales to Europe, with MSN citing industry experts as saying one shipment can net $200 million in profit.
In April, Gunvor reported a net profit of $726 million for 2021, largely on the back of its trading operations for liquefied natural gas (LNG). The Swiss company’s profits are also seeing a boost from its ownership and chartering of ships.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com