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Gunvor Statement
13 October 2021

Managing risk and liquidity is what Gunvor and other physical traders do. While there have been margin calls associated with the recent natural gas price rally, Gunvor has the processes and instruments in place to effectively manage this volatility. Every margin call associated with natural gas and liquefied natural gas (LNG) made during the last several months has been paid.

Moreover, steps taken by any trading house—whether it is Gunvor or its competitors—to cut positions and/or seek additional financing support are appropriate, responsible measures taken to respond to market conditions. The notion that these activities directly indicate losses is wrong.

Gunvor performs position monitoring and stress tests for extreme market movements on a daily basis and constantly assesses the size of its physical and hedge book and the associated liquidity. Gunvor further ensures that adequate liquidity is available to respond to margin calls related to the Group’s paper positions (hedging its physical business). This occurs through a variety of funding solutions that include bilateral funding facilities, syndicated trade finance facilities, and syndicated revolving credit facilities. Gunvor is in constant dialogue with its global financing partners to adjust available funding facilities to the needs of our business.

As a result, Gunvor and its natural gas and LNG businesses are substantially profitable, and have remained so during the last months and years. Gunvor further remains well capitalized.

In addition, to refute misinformation and erroneous speculation posted by “ZeroHedge” and elsewhere:

  • Gunvor’s co-head of LNG based in Singapore—who also sits on the Group’s executive committee—remains unchanged.
  • No LNG management has left the company, nor has the team changed.
  • Gunvor’s trading across all desks remains ongoing and has not ceased.
  • Gunvor has not been blocked by ICE (Intercontinental Exchange) at any point.
  • Descriptions of Gunvor’s LNG trading and hedging practices are clearly guessed at and false.
  • Figures claimed about Gunvor’s previous and possible exposure to future margin calls are wildly exaggerated and wrong.