Global commodities traders are accelerating their acquisition of physical assets, leveraging historic energy crisis profits to tighten control over complex supply chains.
Trafigura, Vitol, Gunvor, and Mercuria have together raked in over $57 billion in net profits since Russia’s 2022 invasion of Ukraine.
Now, they are deploying that cash into strategic expansion, from refineries and fuel networks to metals trading and biofuels.
This surge in investments marks a shift beyond traditional oil trading. Gunvor recently acquired 800 petrol stations in Pakistan and a Spanish gas plant, while Vitol-backed Varo Energy made a $2bn biofuels acquisition in Scandinavia.
Mercuria’s chief Marco Dunand said the windfall enabled projects worth half a billion dollars or more — ambitions previously out of reach.
Mercuria, Gunvor, and Vitol are also building metals teams to capture rising demand for copper and aluminium amid the energy transition.
The trading houses are sharpening their edge amid rising competition from hedge funds such as Citadel and Millennium.
Industry experts say dominant players have lost about 10% market share since 2019 due to new entrants and in-house trading by producers and consumers.
In response, firms are reinforcing core businesses by acquiring ships, refineries, and power plants. These physical assets provide market intelligence and operational flexibility that enhance profit margins.
Gunvor, despite posting a lower 2024 net profit of $729 million, continues to invest in infrastructure. Its CEO said ownership of upstream gas production in the US is also under consideration.
Vitol, the world’s largest independent energy trader, earned $13.2bn in 2023 — more than BP. It has since acquired major assets, including Turkey’s BP fuel retail network, South Africa’s Engen, and oil projects in Ghana and Congo.
CEO Russell Hardy said Vitol’s increased asset base is now more closely integrated with trading, adding that the scale-up has “been good overall for the business.”
Trafigura, the top private metals trader, has taken a more cautious tone. New CEO Richard Holtum acknowledged a $10bn asset base and noted the flood of proposals from its 700 traders. But he warned against overextending fixed assets.
Half of Trafigura’s $20bn profit since 2021 has been reinvested. However, the firm has faced setbacks — including a $600mn nickel fraud in 2022 and a $1.1bn loss in Mongolia last year.
Still, Trafigura continues to expand, acquiring UK biofuels firm Greenergy, a French refinery from Esso, and a gas plant in Texas. Holtum has also initiated a strategic asset review, with struggling units like Nyrstar Australia under scrutiny.
