(Refiles to add UPDATE 1 tag in headline, adjust slug. Update
adds context, staff cuts)
* Trader replacing CEO Peter Bosworth with Paul Adams
* Sources say staff being cut in UAE, Swiss offices
* Some oil trading houses suffer shrinking margins
* Arcadia once a top player in Nigerian oil exports
By Emma Farge
GENEVA/SINGAPORE, March 28 Energy trader Arcadia
Petroleum plans to replace its long-serving CEO, a well-informed
industry source said, and other sources said it would
restructure its trading desk in the latest sign that profit
margins in the sector are shrinking.
London-based Arcadia, which is one of the world's top oil
traders and is owned by a Norwegian shipping magnate, will part
company with its British CEO Peter Bosworth who joined as a
novice trader more than 20 years ago.
Bosworth will be replaced by Paul Adams, who is currently
with Arcadia and was formerly a senior executive in oil trading
The company did not respond to two requests for comment.
Arcadia owner John Fredriksen, one of the world's richest
men known in the shipping sector as "Big Wolf", also owns
shipping company Frontline 2012 which he plans to
list in New York.
Fredriksen has been expanding his network of tankers during
one of the worst slumps in shipping history with global demand
imploding due to prolonged economic turmoil.
Industry sources said that Arcadia had cut jobs in its UAE
office in recent weeks and one of the sources said the office
One of the sources added that staff cuts were being made in
the Swiss office, without giving details.
Arcadia is active in crude and products and in recent years
and its total annual turnover has been between $20 billion-$25
billion, according to one estimate.
It has also been strong on paper derivatives markets. Like
other privately-owned trading houses it does not disclose
Arcadia has faced U.S. scrutiny and the Commodity Futures
Trading Commission has accused Arcadia Petroleum and its
affiliates of attempting to manipulate oil prices in 2008.
Arcadia and Parnon Energy, which is also owned by
Fredriksen, have denied the charges and submitted a motion to
dismiss the case. A U.S. judge in April 2012 denied the motion.
Trading units at some oil companies and traders have
struggled in recent years due partly to low volatility.
The world's number one oil trader Vitol returned its
second-highest profits on record in 2011 on a steep increase in
revenue, but its profit margin and cash flow fell to their
lowest in four years, the private firm disclosed this
BP has said trading has disappointed in recent years and its
weak performance has been the main reason for its failure to
fully deliver on its pledge to improve performance in its
Arcadia was founded by Japan's Mitsui & Co Ltd in 1998 and
has trading desks in the United States, Britain, Switzerland,
UAE, Singapore and Australia, according to its website.
It was once one of the top buyers of Nigerian oil, which
were known collectively as the "magnificent seven", but it did
not appear on the official list of buyers of the OPEC member's
crude for 2011-2012.
(Reporting by Emma Farge; Additional reporting by Florence Tan;
Editing by Anthony Barker)