A reliable trading partner will always perform – even in the toughest times. Trafigura’s diversified funding model allows it to operate effectively in all market conditions. Its scale and structure protects the business from market shocks. It provides flexibility and the ability to capitalise on opportunities as they arise.
Interview with Jeremy Weir, Executive Chairman and CEO on the Group's 2022 Annual Results
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Interview with Jeremy Weir, Trafigura Executive Chairman and CEO discusses the Group’s 2022 Annual Results
08 December 2022
Risk management
Trafigura’s prudent approach to risk management unlocks access in volatile markets. We systematically hedge flat price risk and have little exposure to underlying commodity prices. Trafigura’s globally diversified portfolio has reduced risk characteristics. Trafigura’s advanced global risk management methodology focuses on aggregate risk, paying particular attention to term structure and intra-commodity spreads. Risk concentrations are continuously reviewed in the context of changing market dynamics.
Balance sheet
The Group’s strong balance sheet generates economies of scale, supports infrastructure investment and allows us to finance production. We use collateralised short-term financing for trading with loans secured by the underlying physical commodities. Longer-term debt finances fixed assets and investments.
Diverse financing
Diverse financing strategies maximise scalability, flexibility and business resilience. Trafigura diversifies both the sources and the structure of its financing to minimise risk and maximise operational effectiveness. It raises funds in the US, Europe and Asia-Pacific, and has lending arrangements in place at over 120 banks.
Financial Reports
Trafigura publicly reports audited financial results in our half-year interim reports, covering the six months to 31 March, and in annual reports, covering our financial year to 30 September.
Note
The consolidated financial report for the year ending September 30, 2015 is the first to be prepared with Trafigura Group Pte. Ltd. (“TGPL”), a company registered in Singapore, as the consolidating entity. Prior to this date, Trafigura Beheer B.V. (“TBBV”), a Dutch registered company was the main consolidating entity for the Group. This change is the last stage in a process that commenced in 2012 when another Singaporean entity, Trafigura Pte Ltd., became the main corporate entity for the Group’s global trading activities. This final stage completes the process and fully establishes Singapore as the default legal jurisdiction for all of the Trafigura Group businesses. It is also an important step in creating greater consistency across the Group’s structure and in aligning reporting structures and business activities in Singapore, the regional hub for our business activities in the Asia-Pacific region.
