Trafigura results show strong performance in shifting markets

(Posted on 13/12/23)

Trafigura Group Pte Ltd, a market leader in the global commodities industry, has released results for its financial year ending 30 September 2023, showing a strong performance across the three core divisions of the Group – Metals, Minerals and Bulk Commodities; Oil and Petroleum Products; and Gas, Power and Renewables.

Net profit for the period increased five percent to USD7,398 million, up from USD7,026 million a year earlier, with strong underlying contributions recorded across all the Group. Exceptional earnings were achieved during the first half of the year as teams provided valuable services to customers in disrupted energy markets and captured opportunities in a volatile environment.

In the second half of the year, we continued to benefit from high demand for services, despite the easing of supply chain disruptions and market volatility. These more normalised conditions have continued into th 2024 financial year.

Over the year, revenues dropped 23 percent to USD244,280 million, from USD318,476 million in 2022, reflecting lower average commodity prices.

Due to strong profitability, Group equity rose by nine percent to a record USD16,495 million, up from USD15,079 million, and has more than doubled since 2020, providing a solid base for further growth. This increase in equity was one of the drivers that maintained our financial leverage substantially below our medium-term target.

Metals, Minerals and Bulk Commodities had a strong year, generating an operating profit before depreciation and amortisation of USD1,601 million, down from USD1,877 million a year earlier. However, excluding the charge related to the nickel fraud, the division would have reported an operating profit of USD2,179 million, above its last three-year average level, supported by growing energy transition demand for copper, aluminium and other metals.

The performance of the Group in the second half of the 2023 financial year is more representative of the result that can be expected in 2024. However, markets and supply chains remain fragile and prone to turbulence linked to heightened geopolitical tensions, low stock levels and weak elasticity of supply that could change this outlook.

Jeremy Weir, Executive Chairman and Chief Executive Officer, said: “As we look ahead we will continue to diversify our business with investments planned in renewable hydrogen, carbon removals and critical minerals.

“I believe that we have the people, global network and vision to make the most of the opportunities that lie ahead as the world decarbonises but still needs to provide energy to a growing global population. As a result, we approach 2024 with confidence in our prospects over the medium and long term.”