Warren Buffett’s Experimental Company Exits Global Oil Trading, Refocuses on US Operations: Report

Al Tayyar Companywholly owned by Warren Buffett‘s Berkshire Hathaway Company Pools Poolsis closing its international oil trading business to focus on its primary U.S. travel hub operations.

What happened: The Knoxville, Tennessee-based company has fired most of its international trading staff in recent months, including veteran distillate fuels traders Anthony Hicks and Ngiem NguyenReuters I mentionedciting sources.

A small team, including a fuel merchant Ajay HarryExisting contracts with clients such as those in Ecuador remain to be terminated Petro Ecuador.

“Our core capabilities focus on providing reliable fuel supplies to our travel hubs and customers throughout North America,” Pilot Energy President Gary Hoogeveen He said in a statement, although the company did not comment specifically on the closure of the trading unit.

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Why does it matter?: This strategic shift comes after Berkshire Hathaway acquired the remaining 20% ​​stake in Pilot from the Haslam family in January 2024, following a legal dispute over the company’s valuation. Pilot’s performance declined significantly, with pre-tax profits falling from $2.3 billion in 2022 to $1.06 billion in 2023.

The company began scaling back its business operations in 2023, laying off 15 employees including a vice president. Steven HollerbachThis is after Buffett increased his stake to 80%. The latest move represents a complete withdrawal from international trading, which Pilot expanded into after Berkshire’s initial 39% investment in 2017.

Al-Tayyar, founded in 1958 by Jim HaslamIt operates more than 650 travel centers and 75 fuel-only locations throughout North America. The company reported revenues of more than $36 billion in the first nine months of 2024, with pre-tax profits of about $486 million, both showing a year-over-year decline.

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Disclaimer: This content was produced in part with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.