Buffett's Pilot Co. will shut down its international oil trading business, ending plans to enter the trillion-dollar global market and refocusing on its Pilot Flying J gas stations and truck stations in the United States, three sources said on Tuesday.
Pilot, a subsidiary of Buffett's Berkshire Hathaway, has laid off almost all of its employees responsible for international trade, according to two people familiar with the matter. They said the company will use resources to develop its own North American business instead of trade.
Pilot did not comment on whether the company would exit the international trading business. "Our core capabilities are focused on providing reliable fuel supply to our travel centers and North American customers," said Gary Hoogevenen, president of Pilot Energy, in a statement.
Hoogevenen said the company may explore international markets to meet its supply needs.
Pilot began cutting back on its energy trading business as early as 2023, firing 15 employees including Vice President Steven Holbach after Buffett raised his stake in the company to 80%.
Buffett took over Pilot's remaining 20% stake last January after a legal dispute with billionaire Jimmy Haslam over the company's valuation. The company's pre-tax profit halved to $1.06 billion in 2023 from more than $2.3 billion in 2022, according to regulatory filings.
Since then, Pilot's appetite for international oil trading risk has waned. The company has laid off most of its international oil and fuel traders in recent months, two sources said.