Vitol has enjoyed strong profits in recent years, a trend that held in 2019 when net income matched the $2.3 billion record set in 2009, according to the accounts. Vitol is forecasting consumption growth of just 1.1 MMbopd in 2019, down from 1.5 MMbopd in 2018. Whilst the immediate outlook remains unclear, it is certain that the provision of efficient energy solutions will be an important part of any recovery. Gunvor Group Ltd. is on track for its highest-ever annual profit from oil and gas trading and has already earned back more than the $330 million loss it suffered in 2018. Shell Western enjoyed a profit margin of 4.1% across 2018 and 2019, according to its tax report. Long-time CEO Ian Taylor moved to become chairman in 2018, and died earlier this year. Waste also is a potential new profit avenue. Vitol has been trading oil and petroleum products for over 50 years. Vitol has enjoyed strong profits in recent years, a trend that held in 2019 when net income matched the $2.3 billion record set in 2009, according to the accounts. Before it's here, it's on the Bloomberg Terminal. Vitol, Mercuria, Gunvor, Trafigura and the oil trading division of Glencore made a combined net profit of about US$3.2 billion in 2018 on the back of US$747 billion in revenues, compared with a combined profit of US$5 billion in 2015 on revenues of US$511 billion. Based on the price-to-earnings ratios of its publicly traded peers, Vitol could be worth more than $25 billion. However, the Sankofa Gye-Nyame project in Ghana, in which it is partnering with Eni and GNPC, has proved successful; delivering a consistent and reliable supply of gas to Ghana’s power sector, providing flexibility and stepping in when other supplies have failed. Vitol’s net profit for Q1 was just US$180 million, according to the figures seen by FT. To compare, in the first quarter of 2019, Vitol – which trades more than 7 million barrels of crude oil and products every day – booked a net income of as much as US$600 million. Have a confidential tip for our reporters? A former oil trader at the Brazilian state-run oil company told investigators last year he received bribes from the trading house to favor Vitol in contracts from 2003 to 2005. We work with partners to support and supply global energy flows, moving energy responsibly, safely and cost effectively around the world. We will navigate these unprecedented times as safely and sensibly as we can, with a determined focus on mitigating the risks to our people and our business. Vitol, a quiet giant that in 2019 handled more than 8 million barrels of crude and petroleum products a day, also agreed to pay more than $12.7 million to the Commodity Futures Trading Commission in a related matter, and to pay the CFTC a $16 million penalty related to trading activity not covered by the deferred prosecution agreement with the Justice Department. The company, which operates from offices in London but is ultimately controlled through a holding company in Luxembourg, doesn’t announce its results publicly, but shares them with bankers and others. The company failed to fully anticipate the deep drop in fuel demand caused by the coronavirus pandemic, a person familiar with the matter said said at the time. The larger-than-normal payout came at the same time as several of Vitol’s senior partners were making way for a new generation. Vitol, which is led by Russel Hardy as its Chief Executive Officer, has enjoyed strong profits in recent years, a trend that continued in 2019 when net income matched the $2.3 billion income record that was set in 2009. Consulting firm Oliver Wyman said trading margins fell more than 20 per cent last year from a peak in 2015. We were pleased to welcome ADNOC (the Abu Dhabi National Oil Company) as a shareholder of VTTI, the global storage and terminal operator founded by Vitol in 2006. “Vitol is committed to upholding the law and does not tolerate corruption or illegal business practices,” CEO Russell Hardy ... that Vitol attempted to manipulate S&P Global Platts physical oil benchmarks in August 2014 and July 2015 for its own profit. 1. For the oil market, the decline in economic activity will necessarily result in large surpluses of both crude oil and products as the market struggles to balance. Between 2015 and July 2020, Vitol agreed to offer and pay more than $2 million in bribes to officials in Ecuador and Mexico. 2Six-month period ended 31 March 2018. Vitol has 40 offices worldwide and its largest operations are in Geneva, Houston, London, and Singapore. As anticipated, IMO impacted high sulphur fuel oil demand and our fuel oil volumes consequently fell 11%, and naphtha continued its struggle for market share against LPG, with volumes falling marginally. Vitol has denied the allegations and said the company has a “zero tolerance” policy regarding bribery and corruption and is cooperating with the authorities, including the U.S. Justice Department, which is also investigating. December 11, 2019, 3:00 AM EST Oil trading gross profit soars 64% to record $1.7 billion Share buybacks plunge 36% to 8-year low but equity value gains Norway Raises Concern Over Vaccine Jabs for the Elderly, Edmond de Rothschild Holding’s Chairman Dies at 57, Norway Warns of Vaccination Risks for Sick Patients Over 80, Inside Cyberpunk 2077's Disastrous Rollout, Los Angeles Covid Cases Top 1 Million as Outbreak Worsens. Bloomberg estimated that Vitol’s profits for 2019 were nearly $2 billion. For over 50 years we have used our networks and infrastructure to manage the flow of energy around the world, efficiently and responsibly. Vitol’s exposure to upstream has always been limited. We have the flexibility in our supply and trading business to accommodate the evolving market conditions. The company earlier this year said that it benefited from higher trading volumes and “relative tightness” in the oil market in 2019, which allowed for fatter margins. Our performance in 2019 was solid. 2019 8.83 8.3 2018 2019 Gross profit margin Total group equity 1.70% $6.6bn 1.132 1.70 2018 2019 6.23 6.6 2018 Profit for the period EBITDA $425.7m $1,112m 221.8 2 425.7 2018 2019 658 1,112 2018 2019 Christophe Salmon, Group Chief Financial Officer 1Six-month period ended 31 March 2019. "There could be a question mark over market direction by … Our outlook for 2020 changes with the evolution of the pandemic and uncertainty will be the watchword for many months. These accounts were not audited and were solely approved by the board. In July 2019, following the completion of Enforcement Staff’s investigation, FERC issued an order directing Vitol and Corteggiano to show cause why they should not be assessed Enforcement Staff’s recommended civil penalties of $6 million and $800,000 respectively, and directing Vitol to show cause why it should not disgorge $1,227,143 in unjust profits. 14 days later, HASCOL announces its first quarter 2019 accounts and shows a profit of Rs. Vitol also admitted to a second conspiracy to bribe officials in Ecuador and Mexico in order to obtain and retain business in connection with the purchase and sale of oil products. Even as Vitol has notched up large profits, it has come under scrutiny as part of the Brazilian “Carwash” investigations. This site uses cookies to provide you with a great user experience. Supply, demand and prices of commodities Risk movement in 2019- Stable Risk appetite- Low. Led by Chief Executive Officer Russell Hardy, Vitol is the world’s largest independent oil trading house. Our volumes of crude oil and products traded grew 8% to 8m b/d. Last year, Vitol and Eni, together with other local partners, drilled Block 4 offshore Ghana and discovered gross volume ranges which could be in excess of 550BCF gas and 18m barrels of condensate2. The figure highlights how the riches of the commodities trading industry have accrued to a small cadre of senior executives who have surfed the ups and downs of the energy markets over the past two decades. Vitol’s first-half profit jumped 50 percent to $818.9 million as the company sold oil pipelines and terminals, but third-quarter earnings fell by 50 percent to $189 million. Vitol continues to seek investment opportunities that complement its core trading business, as well as provide a solid return. In this context, we were pleased to increase our delivered Liquefied Natural Gas (LNG) volumes by 35% to 10.5mt, as well as to enter into a number of long-term partnerships and cooperations in LNG, which we believe will provide the foundations for the next phase of this business line’s growth. By using the Vitol website, you accept, Health, Safety, Environment, Human Rights and Communities (HSEC), 8 million barrels a day of crude oil and products traded, Expansion of investment in solar and wind, Further consolidation of downstream portfolio. If it was divided equally, the 2019 payout would be equivalent to more than $6 million per partner, an amount that compares favorably with compensation at leading investment banks. Today, VTTI is owned 10% by ADNOC, 45% by IFM Global Infrastructure Fund (IFM GIF), an investment vehicle managed by IFM Investors, and 45% by Vitol (both directly and through Vitol Investment Partnership II Ltd, an investment vehicle sponsored and managed by Vitol). The buyback -- Vitol’s main way of rewarding about 350 top employees who own the privately-held company -- means the trading house has distributed a total of more than $14 billion in the past 15 years to its partners, according to the company’s audited annual accounts, seen by Bloomberg News. Vitol is an energy and commodities company. 675mn. Vitol is a Dutch energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. I am fortunate to be supported by an outstanding team of dedicated individuals. Difficult times such as these vindicate Vitol’s long-held commitment to a conservative balance sheet with an unwavering focus on financial stability. With revenues of $231 billion in 2018, it is the largest independent ener… In other trading houses, including Glencore Plc and Trafigura Group, top executives have historically controlled much larger stakes. Our downstream network, which comprises circa 7,000 service stations across five continents, continues to grow steadily. The company earlier this year said that it benefited from higher trading volumes and “relative tightness” in … Further drilling is required to confirm any potential upside. The company expects to achieve a “reasonable result” in 2020, according to the directors’ report on its full-year results. Every year we charter 7,000 journeys, giving us a unique insight into shipping flows and trends. 1 Vitol Investment Partnership II, an investment vehicle sponsored and managed by Vitol. Net profit edged down to $867.8 million, the lowest since 2010, from $872.8 million in 2018. Across the industry, other trading houses also reported strong profits in 2019. Performance Indicators 1 "In … We will do our utmost to use our logistical capabilities, from storage to shipping, to facilitate the smooth flow of energy during this time of unprecedented uncertainty. A Vitol spokesperson declined to comment. 27 Mar 2020. Vitol’s net profit in 2019 matches its 2009 record high, The company is world’s largest independent oil trading house. Most products benefited from these conditions, with crude oil volumes increasing 10%, gasoil 20% and gasoline 13%. This is also Vitol’s first time being linked to bribery. Our market leading position is built upon long-term relationships, on our expertise, market understanding, focus on solutions and reputation for reliability. Yet, it suffered a sharp fall in profit in the first quarter of 2020, with a 70% drop in net income to $180 million, Bloomberg has previously reported. Each day, Vitol moves 8 million barrels of crude and petroleum products -- enough to meet the demand of Germany, France, Italy, Spain and the U.K. combined. Last year’s share buyback was unusually large for Vitol, which historically has paid its partners an amount smaller than the previous year’s net income, allowing the company to build its equity base. In addition, across the barrel, margins were favoured by a relative tightness, enabling us to optimise performance across the portfolio. Refining. But the $2.2 billion it handed to shareholders in 2019 far exceeded the $1.7 billion it made in 2018. Tuesday, 19 March, 2019 Vitol warns oil demand to peak within 15 years Forecast comes after tripling of second-half profit at world’s biggest independent energy trader 3As at 30 September 2018. In the 12 months to December, Vitol reported a net profit after tax of $1.35bn, said people familiar with the privately owned company, the most since 2011 when net income reached $1.7bn. Additionally, we seek to ensure this risk is … Hin Leong posted net profit of $78 million against total liabilities and equity of $4.56 billion for the period ended October 31, 2019. Shell alone trades the equivalent of 13 million barrels a day of oil, dwarfing the nearly 7.5 million barrels a day at Vitol. The Geneva-based firm’s gross profit was $3 billion in 2019, up from $2.4 billion. Today the world is wrestling … The company earlier this year said that it benefited from higher trading volumes and relative tightness in the oil market in 2019. Vitol decides to increase financial holding in Hascol . Vitol has enjoyed strong profits in recent years, a trend that held in 2019 when net income matched the $2.3 billion record set in 2009, according to the accounts. Vitol 2019 volumes and review. While other commodity trading houses have become public companies, including Glencore, which floated in London in 2011, the partners at Vitol have resisted the temptation of selling out. By Monitoring Report ... Vitol currently holds 27.5pc in Hascol, having gradually increased its stake in the fuel retailer since first buying 15pc of Hascol in 2016. Highlights: Turnover US$225 billion; 8 million barrels a day of crude oil and products traded; Expansion of investment in solar and wind; Further consolidation of downstream portfolio ; Statement from Russell Hardy, Group CEO, Vitol: This statement refers to our business in 2019, which now seems a very long time ago. They also highlight the benefits of the many years’ experience of our management team and business leaders. In early 2019, the DOJ opened its own probe into the three company's dealings in Brazil. Vitol has invested in several start-ups, including firms that turn coal and plastic waste into fuel. In the process, all liquid fuels for power generation have been replaced by gas, saving over 1.6 million tons of carbon emissions, providing a lower carbon and cheaper fuel source for Ghana. In the past, Vitol has said none of its top partners owned more than 5% as the company bought back enough shares from older partners to limit their holdings. As well as serving growing demand for LNG in Asia, this will complement our established gas and power trading businesses in Europe and the US, enabling us to provide seamless solutions to customers across those continents. October 31, 2019. We look forward to working with our customers and partners in the coming months as we continue to fulfil this essential role. Shipping. Outside of the inherent risk of commodity prices on unmined reserves/resources, flat price exposure on extracted or trading related positions is usually hedged, when possible. Statement from Russell Hardy, Group CEO, Vitol: This statement refers to our business in 2019, which now seems a very long time ago. But in contrast to the titans of Wall Street, Vitol remains privately owned. VTTI’s strategic positioning in key locations and commitment to the highest operational standards should enable it to benefit from the shifting patterns of demand world-wide. It’s unclear whether there’s a connection between the unusually large buyback and the changing of the guard at the top of Vitol. Vitol Group paid a record $2.2 billion to its executives and staff through share buybacks last year, an unusually large payout that comes as the oil trader undergoes a generational transition in leadership. Mindful of the long-term shift in the energy mix, we are investing in renewables projects in Asia, Europe and the US, largely in solar and wind, and anticipate being invested in over a gigawatt of renewable power capacity in the next 36 months. The company valued its stockholders’ equity at $11 billion at the end of 2019, little changed from the end of 2018. Vitol neither admitted nor denied the findings in reaching settlement. 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