Richard Holtum set to take reins from Jeremy Weir as commodities trader deepened focus on renewables, sources say
11 April 2024 - 14:03
byJulia Payne, Dmitry Zhdannikov and Pratima Desai
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Lausanne — Jeremy Weir, the longtime CEO of Trafigura, is priming Richard Holtum to take over when he decides to step back into a chairing role, five sources familiar with the matter said.
The of commodities trader has yet to announce an official transition or a timeline for the change but management reshuffles and the retirements announced last week of two executives have paved the way for a new generation of leadership.
Holtum, the Trafigura’s global head of gas, power and renewables, has joined Weir in meetings with top clients and banks in recent weeks, sources said, a first step in preparing him for the top job. One of the sources said the transition could take place as soon as this year.
A spokesperson for Trafigura declined to comment.
A former British soldier, Holtum has had a meteoric rise at the firm. After joining the liquefied natural gas (LNG) team in 2014 from Glencore, he was promoted to the lead the new division of gas and power in 2019.
Trafigura consolidated division leadership last year and Holtum added renewables to his portfolio.
“Renewable energy is the future. Holtum will step up when Weir decides he wants a quieter life,” one of the sources said.
All of the sources requested anonymity because they aren’t authorised to speak publicly on the matter.
Record profit
Along with oil, Holtum’s division helped to deliver record profits for the company over the past two years during Europe’s energy crisis and extreme market dislocations created by Western sanctions against Russia.
Trading firms say they also see future growth in power markets as the world shifts towards increased electrification and greater use of renewable energy sources. Natural gas is regarded as a bridge fossil fuel due to its lower emissions than coal.
Trading houses reported bumper profits in 2022 and 2023 after Russia’s pipeline gas exports shrank to a small fraction of their former volume and gas prices hit record highs in Europe.
Trafigura made $7.4bn in profit last year and its group equity has more than doubled since 2020. It’s the world’s second-biggest biggest oil and LNG trader behind Vitol, and its copper book rivals that of mining giant Glencore.
The firm is trying to move on from bribery scandals that have also dogged its rivals Vitol, Glencore and Gunvor, and precipitated management changes at the four companies in recent years.
Trafigura resolved a bribery investigation into its oil dealings in Brazil with the US Department of Justice (DOJ) last month and will pay a fine of about $127m.
The company still needs to resolve charges regarding its Angolan business. Switzerland’s attorney-general filed an indictment against it last year for failing to prevent alleged unlawful payments via a third party to a former employee of Angola’s state oil company Sonangol between 2009 and 2011 and its former COO Mike Wainwright has been charged with bribery.
Trafigura said it would defend itself in court and that Wainwright rejected the charges and would also defend himself.
A spokesperson for Trafigura denied any connection between the recent retirements of its veteran oil head Jose Larocca and CFO Christope Salmon and “any legal issue, including the former parent company’s recent resolution with the DOJ”.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Trafigura CEO prepares handover to successor
Richard Holtum set to take reins from Jeremy Weir as commodities trader deepened focus on renewables, sources say
Lausanne — Jeremy Weir, the longtime CEO of Trafigura, is priming Richard Holtum to take over when he decides to step back into a chairing role, five sources familiar with the matter said.
The of commodities trader has yet to announce an official transition or a timeline for the change but management reshuffles and the retirements announced last week of two executives have paved the way for a new generation of leadership.
Holtum, the Trafigura’s global head of gas, power and renewables, has joined Weir in meetings with top clients and banks in recent weeks, sources said, a first step in preparing him for the top job. One of the sources said the transition could take place as soon as this year.
A spokesperson for Trafigura declined to comment.
A former British soldier, Holtum has had a meteoric rise at the firm. After joining the liquefied natural gas (LNG) team in 2014 from Glencore, he was promoted to the lead the new division of gas and power in 2019.
Trafigura consolidated division leadership last year and Holtum added renewables to his portfolio.
“Renewable energy is the future. Holtum will step up when Weir decides he wants a quieter life,” one of the sources said.
All of the sources requested anonymity because they aren’t authorised to speak publicly on the matter.
Record profit
Along with oil, Holtum’s division helped to deliver record profits for the company over the past two years during Europe’s energy crisis and extreme market dislocations created by Western sanctions against Russia.
Trading firms say they also see future growth in power markets as the world shifts towards increased electrification and greater use of renewable energy sources. Natural gas is regarded as a bridge fossil fuel due to its lower emissions than coal.
Trading houses reported bumper profits in 2022 and 2023 after Russia’s pipeline gas exports shrank to a small fraction of their former volume and gas prices hit record highs in Europe.
Trafigura made $7.4bn in profit last year and its group equity has more than doubled since 2020. It’s the world’s second-biggest biggest oil and LNG trader behind Vitol, and its copper book rivals that of mining giant Glencore.
The firm is trying to move on from bribery scandals that have also dogged its rivals Vitol, Glencore and Gunvor, and precipitated management changes at the four companies in recent years.
Trafigura resolved a bribery investigation into its oil dealings in Brazil with the US Department of Justice (DOJ) last month and will pay a fine of about $127m.
The company still needs to resolve charges regarding its Angolan business. Switzerland’s attorney-general filed an indictment against it last year for failing to prevent alleged unlawful payments via a third party to a former employee of Angola’s state oil company Sonangol between 2009 and 2011 and its former COO Mike Wainwright has been charged with bribery.
Trafigura said it would defend itself in court and that Wainwright rejected the charges and would also defend himself.
A spokesperson for Trafigura denied any connection between the recent retirements of its veteran oil head Jose Larocca and CFO Christope Salmon and “any legal issue, including the former parent company’s recent resolution with the DOJ”.
Reuters
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