Commodity trading Giant Trafigura reported record net profits of $5.5bn in the first half of its financial year . This is more than double the same period 12 months ago. It was one of a number of groups that have reaped from the energy crisis and it has paid out a record $3bn (£2.4bn) to its top traders
During the six months ending on March 31, 2023, the group, that relocated its global headquarters to Singapore in 2012 to save millions in tax, reported a net profit of $5.5bn, and earnings before interest, taxes, depreciation and amortisation of $8.1bn.
That period includes last winter, during the major supply issues caused by the Russia-Ukraine war. Fears of blackouts and gas shortages spurred big swings in energy prices and a race to secure gas supplies. One outcome of that was Trafigura’s $3bn, four-year deal to supply gas to Germany
Trafigura paid a record $3bn dividend to be shared among about 1,200 shareholders in the privately held company, which are almost all traders and executives at the firm. That was up from $1.7bn in the previous year.
Trafigura’s financial year runs from September, and its half-year results cover the period until the end of March.
During the first half of the financial year, Trafigura said that lower overall commodities prices led to lower overall revenue of $131.3bn, which is 23 per cent lower than the same period the previous year.
However, its margins rose, with net profit reaching 4.2 per cent of revenue during its first half, up from 1.6 per cent during the same period 12 months prior
“Any dislocation of the supply chain means that our [logistical] services are taking more value,” said Salmon. “Our services were very needed by the supply chain, and we were key to ensuring security of supply, notably to western Europe.”
Other large trading houses such as Vitol and Glencore have also benefited from the volatility and disruptions, with all the major traders reporting record earnings last year.
Trafigura’s chief executive, Jeremy Weir said “We continued to experience strong demand for our services from a global customer base that relies on us to help secure access to vital resources in an increasingly complex world. As we have highlighted in previous reports, our core business of moving commodities from where they are produced to where they are needed has become more complex but also more critical and more in demand than ever before.”
The company, which has been beset by a string of fraud and toxic waste dumping scandals, announced on Wednesday the staff dividend would share out a 107% jump in net profits as a result of the global instability.
