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Trafigura posts sharp rise in H1 profit

Published : Wednesday, 12 June, 2019 at 12:00 AM  Count : 78

Trafigura posts sharp rise in H1 profit

Trafigura posts sharp rise in H1 profit

LONDON, June 11: Commodities trader Trafigura posted a net profit of $425.7 million for the first half of its financial year, up 92 per cent from $221.8 million in the same period the year before, the company said on Tuesday.
The Geneva-based firm said the result for the six months ended March 31 was principally due to the performance of its crude and oil products trading division, while its metals and minerals division was weaker.
The outcome marks a stark reversal from the year before, which was tough for oil traders across the board. Trafigura's oil division accounted for only 40 per cent of gross profit in its fiscal year to September 2018, down 10 per cent.
Trafigura's total earnings before interest, tax, depreciation and amortization (EBITDA) for the first half of this financial year was $1.1 billion, up from $658 million the year before.
Gross profit was $1.472 billion, up 50 per cent year on year, while revenues were flat at $86 billion.
The contribution of the metals and minerals book to gross profit was down by a third.
Total traded oil and refined products volumes fell 7 per cent versus the same period a year earlier to average 5.5 million barrels per day, while the volume of metals and minerals rose 3 per cent.
Last year, Trafigura restructured its oil trading operations and the move appeared to be paying off. Rob Gillon and Ben Luckock were made co-heads of oil trading, while former sole head of oil Jose Larocca remained an executive director.
In its interim report, Trafigura said it was better equipped to take advantage of price volatility in the period, led by geopolitical events.
"Our performance was also enhanced by our market-leading position in strategic commodity flows, notably the increase in exports of crude oil and liquefied natural gas from the US," the firm said.    -Reuters




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