ExxonMobil creating global trade arm in reorg

ExxonMobil will create a global trading division later this year as part of the latest stage in a company-wide reorganization.

The new unit, to be called Global Trading, will incorporate "our expertise from across the company in global crude, products and feedstocks, natural gas, power, and freight trading," ExxonMobil said in a memo sent to employees today. The unit will be focused on "driving commercial intensity and ultimately delivering industry-leading trading results."

Trading has historically been part of specific business units at ExxonMobil, integrated with operations and logistics. The shift to all trading businesses under one roof may help it better compete with European rivals such as Shell and commodity houses like Trafigura.

As part of the shake-up, the company is also setting up a new unit that will include financial services, procurement and customer service starting 1 May. ExxonMobil is also creating a supply chain group to streamline operations, also effective from that date.

The company said the changes were not aimed at reducing headcount, but rather with "operating more efficiently, working more effectively."

Chief executive officer Darren Woods said last month that ExxonMobil was on track to trim structural costs by $9bn by the end of 2023 from 2019 levels.

Just over a year ago, the company announced plans to merge its chemicals and refining units and move its corporate headquarters to Houston.

ExxonMobil was forced to slash spending when the pandemic struck in 2020 and a series of aggressive cost-cutting efforts included widespread layoffs.

The company has since witnessed a turnaround in its fortunes as oil demand recovered from the pandemic. Spending has largely been kept in check and management has focused on boosting dividends and share buybacks to appease shareholders and win back favor on Wall Street.

Last month, ExxonMobil posted record annual profit of $55.7bn for 2022 after oil prices soared on the back of the Russian invasion of Ukraine.

By Stephen Cunningham