Moving Energy
Forward
Finance
Managing risk and liquidityLiquidity refers to the ease with which an asset or security can be bought or sold in the market without affecting its price. In the context of energy commodities trading,... Read more is at the core of Gunvor’s business. From the company’s inception, Gunvor has been successful in building long-term relationships in the financial sector and diversifying its banking partnerships. Today, we work with more than 75 leading global financial institutions.
As a growing business with interests throughout the world, Gunvor has always sought to establish local partnerships for its investments, such as establishing an independent revolving credit facility specifically for Asia, and creating borrowing basesBorrowing bases are a key aspect of financial analysis and risk management in the energy commodities trading sector. In this context, borrowing bases refer to the calculation and determination of... Read more in the Middle East and the Americas to finance trading operations in those regions.
Such an approach has benefited our year-on-year profitability and enabled us to increase credit lines even through the global financial crisis**Global Financial Crisis** The Global Financial Crisis, often abbreviated as the GFC and also known as the financial crisis of 2007-2008, was a severe worldwide economic meltdown that is considered... Read more. Our culture is one of financial prudence. We maintain a strong liquidity position and our assets are optimally financed.
Managing Volatility
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**Margin Calls** In the arena of energy commodities trading, margin calls are demands for additional capital or securities made by a brokerage firm to an investor when the assets in... Read more related to the Group’s paper positions**Paper Positions** In the world of energy commodities trading, "paper positions" refer to trades that deal with contracts rather than the physical delivery of the actual commodity. These contracts, which... Read more (hedging**Hedging** In the context of energy commodities trading, hedging is a risk management strategy used to offset potential losses from price fluctuations in the market. It is akin to taking... Read more its physical business). This occurs through a variety of funding solutions that include bilateral funding facilities, syndicated trade finance facilitiesSyndicated trade finance facilities are arrangements where a group of financial institutions jointly provide financing for trade transactions. These syndications are typically organized by one or more banks, known as... Read more, 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 growing business with interests throughout the world, Gunvor has always sought to establish local partnerships for its investments
Financing Types
Short-term transactional, self-liquidating, and secured credit facilities:
Bilateral transactional credit lines and borrowing base financings to finance daily trade activities and meet its liquidity requirements. Such facilities are self-liquidatingSelf-liquidating is a term used in finance to describe a process where an asset or financial instrument is converted into cash over time, typically to repay a debt or fund... Read more and are therefore directly repaid by the financed transaction.
Short-term and long-term unsecured revolving facilities:
Primarily the company’s Asian and European revolving credit facilities, which are used to fund general corporate needs, bridge financing for new investments, as well as certain asset classes.
Secured term debt facilities:
Project finance, acquisition loans and hybrid financing to meet specific long-term financing needs for fixed assets.
Investor Contact
In September 2021, Gunvor Group Ltd issued US $300 million Senior Unsecured RegS Notes, priced at 6.250 percent, with a 5-year tenor and maturity date of 2026. For more information:
Latest Financial News
Gunvor secures US $1.885 billion sustainability-linked, multi-currency revolving credit facility
GENEVA (21 November 2023) – Gunvor Group Ltd (“Gunvor” or the “Group”) has signed a US $1.885 billion sustainability-linked, multi-currency revolving credit facility (“RCF” or “Facility”) in favour of Gunvor International B.V. and Gunvor SA. The Facility received strong support from Gunvor’s banking partners and attracted new banks, increasing the total amount of the facility […]
Gunvor USA successfully increases borrowing base facility to US $1.6 billion
HOUSTON (8 November 2023) – Gunvor USA LLC (“Gunvor USA” or “the Company”), an indirect, wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or “the Group”), has successfully closed the syndication of its US $1.60 billion uncommitted borrowing base credit facility (“the Facility”). The Facility includes a US $1.28 billion one-year tranche, a US $320 million […]
Gunvor successfully increases OBSI facility to US $1.37 billion
Four new banks join existing lending group Gunvor Group Ltd (“Gunvor” or the “Group”) has refinanced and increased its Off Balance Sheet Instruments Revolving Credit Facility (“Facility”) to US $1.37 billion, up from US $990 million in 2022, in favour of Gunvor SA and Gunvor International B.V. The Facility received strong support from Gunvor’s existing […]
Gunvor secures US $1.125 billion sustainability-linked syndicated revolving credit facility
Gunvor Singapore Pte. Ltd. (the “Borrower”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US $1.035 billion sustainability-linked, syndicated revolving credit facility (the “Facility”) on 16 June 2023. The Facility, which was launched initially at US $550 million in April 2023, benefited from strong support from a total of […]
Gunvor Singapore successfully closes new us $600 million borrowing base
Gunvor Singapore Pte. Ltd. (“Gunvor Singapore”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US $600 million borrowing base facility (“Facility”) to support the working capital needs of its Asian fuel oil business.
Gunvor Group Results 2022
Following a year in which the global economy began its recovery from the Covid-19 pandemic, 2022 commenced with commodities markets in tight supply and inflation rising throughout the world. With the invasion of Ukraine by Russia at the end of February, commodities prices spiked to new levels in response to unprecedented market uncertainty and a series of economic sanctions put in place by Western governments.
Gunvor Group Results H1 2022
Gunvor’s result during this period, driven by massive global market dislocations, was broad-based across all regions and activities, including crude oil, oil products, natural gas, and liquefied natural gas (LNG). Particularly encouraging is the return of substantial profitability in our refining operations and our shipping.
Gunvor Group Results 2021
The Group had gross profit of US $1.544 billion for the year, posting after tax net profit of US $726 million, more than double the 2020 earnings of US $320 million. Trading volumes increased to 240 million MT of commodities, up from 191 million MT the year prior. Gunvor generated revenue of US $135 billion, compared with US $50 billion the year prior, reflecting increases in the traded volumes and the price of commodities.
Gunvor Group Results 2020
Gunvor recorded its highest-ever trading profit during 2020, with strong performances across all desks, including crude oil, oil products, LNG and natural gas. Thanks to robust earnings, the company continued to strengthen its balance sheet and enhance its liquidity position.
Gunvor Group Results 2019
Gunvor’s performance in 2019 was broad-based across all geographies and trading desks, and as a result the company realized strong trading gross profit. The overhaul Gunvor undertook in 2017/2018 to improve risk management and corporate governance enabled the company to effectively take advantage of favorable market conditions throughout the year