Trafigura Appoints Richard Holtum as New CEO, Reports Reuters

By Robert Harvey

Richard Holtum has been announced as the new chief executive of the global trading house Trafigura, effective January 1, 2024. He will take over leadership during a challenging period for trading firms, which are expected to experience reduced profits after a series of exceptionally lucrative years associated with the post-COVID-19 recovery. Additionally, recent significant equity growth is likely to result in substantial payouts to departing shareholders.

Holtum, who has been with Trafigura for nearly a decade, is the third individual to hold the CEO position within the company. He joined the firm in 2014 as part of the Liquefied Natural Gas (LNG) team and advanced to become the global head of gas and power in 2022, incorporating renewables into his responsibilities by 2023.

His ascent at Trafigura has paralleled a booming gas market, driven by soaring prices in the wake of Russia’s invasion of Ukraine. This situation has generated billions in profits for trading houses, pushing the earnings from the gas and LNG divisions to record levels.

Before his tenure at Trafigura, Holtum worked at rival trader Glencore and began his professional journey in the British army.

The outgoing CEO, Jeremy Weir, who has served for over a decade, will transition to the role of group chairman on January 1. Weir had been preparing Holtum for this leadership role, as reported earlier.

According to independent non-executive director Sipko Schat, "The Board of Directors unanimously selected Richard Holtum to lead the Trafigura Group."

This leadership change comes shortly after another organizational restructuring within Trafigura, which included the establishment of a new operational assets division directed by Jiri Zrust. Holtum’s previous responsibilities as the global head of gas, power, and renewables will be taken over by Igor Marin, the current head of power trading.

Profit Outlook

Holtum’s appointment comes at a time when profits for trading houses are predicted to decline after two years of booming earnings, largely due to volatility and increased energy prices following the geopolitical events in Ukraine.

Trafigura’s net profit for the first half of its financial year plummeted by over 74% compared to the same period last year, marking the lowest figures since 2020, after consistently high profits from 2020 to 2023. This profit decline occurred despite a 15% increase in traded oil volumes during the first half of the current year.

In recent years, Trafigura has seen its equity grow nearly 2.5 times to reach $16.5 billion. Consequently, the company will face significant expenses in terms of buyouts for departing shareholders over the next few years.

The firm has also seen the announced retirements of former CFO Christophe Salmon, executive director Jose Maria Larocca, and COO Mike Wainwright this year.