Wed. Oct 4th, 2023
    Glencore Continues to Lose Head Oil Traders Amid Payout Controversy

    Commodity trader Glencore PLC has recently experienced another departure from its oil trading division as Guy Freshwater, the head of crude oil trading in the United States, has stepped down. This follows the resignation of Ricardo Gomez, another member of Glencore’s oil desk. Freshwater, who had been with Glencore for 20 years, left his position last week, according to anonymous sources cited by Bloomberg.

    These departures are part of a larger trend of resignations at Glencore following massive bonus payments made in March. Last year, Glencore reported record profits of $6.8 billion in its trading division, thanks in part to oil price volatility caused by the war in Ukraine. This success left the company with a substantial amount of cash, leading to significant bonus payments.

    However, Glencore is currently facing challenges not only due to these resignations but also from a lawsuit filed by 197 claimants. These claimants allege that Glencore’s prospectuses during its listing on the LSE and subsequent merger included “numerous untrue and misleading statements” related to bribery, corruption, and fraud within the company’s key operating subsidiaries. The claimants argue that they suffered financial losses as a result of these alleged misrepresentations.

    Furthermore, Glencore has faced criticism from a faction of shareholders who express discontent with the company’s climate progress report. These shareholders demand more information regarding how Glencore plans to achieve its emission goals, particularly with regards to its thermal coal business. They have backed a resolution that would require detailed information on Glencore’s progress in divesting from its thermal coal business.

    As a result of these issues, Glencore shares have declined by 12.23% year-to-date. The company continues to navigate these challenges and the ongoing turmoil within its oil trading division.

    – Bloomberg