EXCLUSIVE-Exxon’s head of global trading operations to retire, sources say

((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) () by Stephanie Kelly, Arathy Somasekhar and Sheila Dang

Tracey Gunnlaugsson, head of global trading at Exxon Mobil XOM.N, is retiring, two sources familiar with the matter said. Ms. Gunnlaugsson, based in Houston according to her LinkedIn profile, was appointed head of the trading division in 2023 after having held the position of vice-president of human resources within the company for almost five years. Exxon declined to comment. Reuters could not immediately reach Gunnlaugsson for comment. The oil giant’s results were affected by what Exxon describes as “timing losses” linked to trading, despite rising oil prices due to the ongoing conflict in the Middle East. The company reported a $3.9 billion derivatives accounting loss in the first quarter, sending net profit to its lowest level in five years.

The losses contrasted with first-quarter trading profits for Europe’s oil giants, which raked in billions of dollars from this year’s energy supply crisis, triggered by the US-led war. United States and Israel against Iran. European majors have spent decades setting up trading floors, employing hundreds of people who buy and sell crude, fuels and gas to take advantage of price differentials between regions and time periods, and also take positions in markets derivatives. However, traders at Exxon and its US rival Chevron CVX.N are focused on optimizing flows within their own production networks, refineries and fuel outlets. This approach favors predictability but can limit opportunities to profit from extreme market fluctuations. Exxon uses financial derivatives to mitigate the risk of price changes during the time it takes to deliver cargoes to customers. The value of the physical shipment is not reflected in the results until the transaction is finalized, which had a material adverse impact on timing, the company said.

These calendar effects should fade in subsequent quarters and translate into profitability, Neil Hansen, Exxon’s chief financial officer, said in an interview last month.

On the earnings conference call with analysts, Exxon Chief Executive Darren Woods said the company was convinced the losses were a simple timing problem “that will resolve itself over time.” himself.”

“The timing impact is mainly due to the commercial division taking advantage of market opportunities and securing profits,†he said.