Warren Buffett's Pilot Co Exits Global Oil Trading, Refocuses On US Operations: Report

Pilot Co., fully owned by Warren Buffett‘s Berkshire Hathaway Inc. BRK BRK, is shuttering its international oil trading business to concentrate on its core U.S. travel center operations.

What Happened: The Knoxville, Tennessee-based company has dismissed most of its international trading staff in recent months, including veteran distillate fuel traders Anthony Hicks and Nghiem Nguyen, Reuters reported, citing sources.

A small team, including fuel trader Ajai Hari, remains to wind down existing contracts with customers like Ecuador’s PetroEcuador.

“Our core capabilities are focused on delivering reliable fuel supply to our travel centers and customers across North America,” Pilot Energy President Gary Hoogeveen said in a statement, though the company didn’t specifically comment on the trading unit closure.

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Why It Matters: The 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 has declined significantly, with pre-tax profit falling from $2.3 billion in 2022 to $1.06 billion in 2023.

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

Pilot, founded in 1958 by Jim Haslam, operates more than 650 travel centers and 75 fuel-only locations across North America. The company reported revenue of over $36 billion in the first nine months of 2024, with pre-tax earnings of approximately $486 million, both showing year-over-year declines.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.