For companies in the energy and natural resources (ENR) industry, regionally and globally centralized commodity trading companies offer tremendous competitive advantages. But sustaining these advantages is becoming increasingly difficult in the face of increasing regulation, changing market conditions and international tax reforms.
Commodity trading companies – Meeting the challenges of tax and regulatory change is a follow-up to the 2012 report, Commodity trading companies: Centralizing trade as a critical success factor, where ENR tax and management consulting professionals with KPMG International’s network of member firms explored the growing popularity of these models and outlined their benefits and risks, commercially and from a tax perspective.
Since 2012, the global landscape for the oil, gas, mining and agricultural industries and commodity traders has changed dramatically. Regulatory changes are taking hold, the direction of international tax reforms is becoming somewhat clearer, and the long-term impact of current pricing volatility, especially for crude oil is unknown - all of which make this an opportune time to take stock of the trends and developments that are transforming the commodity trading sector.
To this end, we sought the views of KPMG ENR professionals around the world to answer these questions:
In summary, we describe how global companies can continue to reap substantial benefits from their centralized commodity trading operations - but how their success depends on their ability to navigate and manage a dynamically changing global marketplace.
For more information, download the full report below.
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