KPMG’s Commodity trading companies - Centralizing trade as a critical success factor report highlights the benefits of centralized commodity trading operations as many of the world’s biggest oil and gas and mining majors set up international trading structures to win competitive advantage. It is aimed at helping energy and natural resources companies understand the substantial benefits and risk management issues involved in these complex operations.
The report was developed based on the views of professionals from KPMG’s member firms worldwide who specialize in a range of global tax and advisory disciplines.
The combined insights show, the trend to greater centralization of commodity trading is likely to continue, and companies that take up this model with a sound structure that addresses tax and business risk stand to reap substantial benefits.
In reviewing the potential benefits of establishing specialized commodity trading entities and in assessing existing structures, companies face a range of complex questions: