Physical traders like Gunvor are inherently resilient, with a historical track record of rapid innovation and effective risk management. They are built to confront changing business environments by making adjustments in location, structure, funding, operating regime and strategy. Size matters, up to a point, but so too does the ability to remain nimble as new investment and trading opportunities arise. Over the last decade, Gunvor has evolved from its pure merchant heritage to being increasingly embedded all along the energy supply chain.
Since 2008, Gunvor has been investing in downstream, midstream and upstream assets that strategically complement the company’s daily trading activity. These assets enable Gunvor to enhance our management of the sourcing and distribution components of our trading platform, diversify its income streams and strengthen our competitive position. But it’s not just what the investments bring to Gunvor. As a global trading house, Gunvor brings a lot to the assets in which it invests:
Gunvor maintains a short chain of command to facilitate efficient decision-making, which ensures the company is able to act decisively to secure advantages in the interest of its partners and clients.
Gunvor has established a superior track record for undertaking massive greenfield infrastructure development projects, delivering on-time and under-budget, even in the most remote and difficult environments.
Gunvor employs a decentralized management approach to its assets, empowering talented professionals and experts to manage day-to-day operations, while reducing overhead and bureaucracy.
Gunvor has effectively turned under-valued and distressed assets into profitable operations that preserve and grow jobs, while contributing positively to the local markets in which they operate.
With operations, offices and activities on every continent, Gunvor is able to add economies of scale to local operations, whether that is in the area of supply, marketing or financing.
Terminals are a highly complementary asset investment for our trading activities. They secure access to physical import and/or export flows and so enhance our trading positions.
Gunvor has made select investments in exploration, appraisal, development and production assets as a part of its strategy of diversifying along the energy supply chain.
Investments in pipeline assets provide us with the logistical flexibility to efficiently place different crude oil grades into various markets, enabling us to quickly take advantage of arbitrage opportunities.
Investments in storage facilities for crude oil and products are an important logistical aspect of generating value around various arbitrage opportunities relating time, distance and specifications.
Investments in biofuel plants complement Gunvor’s growing physical trading in the sector, as well as the company’s expansion into energy transition technologies.
Gunvor has commenced taking ownership stakes in the vessels it charters, entering into joint ventures for refined products tankers.