Mercuria CSR Report 2020 - Flipbook - Page 24
GOVERNANCE & ORGANIZATION
understanding of price formation drivers from the
present the current distribution of our investments
perspective of both suppliers and customers.
and assets. We can see from the pie chart below that
there is still a strong oil-based part in our portfolio.
Mercuria is owner and/or majority shareholder of
However this share is less than half of the total (49%).
around 28 strategic assets in production, transport
The chart also shows the renewable share (16%) of
and storage, focusing on oil, gas and dry bulk but
our portfolio. This is renewable part of our portfolio
also stretching into biofuels. By balance sheet value,
is increasing as we continue to make renewables
approximately 54% are in upstream oil & gas assets and
investments around the globe. Last years’ statement
19% in infrastructure & logistics assets. Dry bulk mining
“who better to transition the industry than the industry
assets are now less than 15%, with biofuels refinery
itself” is only one example of our mindset in changing
and other green/sustainable investments comprising
the energy commodity trading industry landscape.
the remaining balance of 13% but increasing faster
These investments are slightly riskier, since the market
than any other category. Geographically, the assets are
is still emerging, however new affordable technologies
also well diversified, with around 50% positioned either
are being developed all the time. We should also
side of the Atlantic.
consider that these types of investments require more
vision and knowledge, and many are still closely tied to
Mercuria
is
constantly
looking
for
investment
R&D. We then come to our “transition” portfolio, which
opportunities that can offer synergies with its trading
consists of investments in gas related structures. We
activities through the provision of recurrent supplies
are happy to have a strong part of our portfolio in this
and off-take contracts bringing optionality and flexibility
energy source which we already identified as being 2
to the trading activities.
times less carbon intensive than coal and 1.5 times
less carbon intensive than oil. Finally, the strategically
Regardless of ownership level, we classified our
dispersed logistics portfolio sums up to a bit less than
portfolio based on market value share in order to
a quarter (22%) of our overall book value.
INVESTMENTS PORTFOLIO
Transition
13%
Logistics
22%
Renewables
16%
Technology
0.5%
Upstream Gas
7%
24
Upstream Oil & Dry bulk
42%
