Singapore, 7 June 2016 - Trafigura Group Pte. Ltd., ("Trafigura"), a market leader in the global commodities industry, has today announced robust commercial and financial results for the first half of its financial year ended 31 March 2016, with healthy profit for the period, gross margin and record trading volumes.
Profit for the period was USD602 million, a decrease of 10 percent from the figure for the same period last year but 40 percent higher than in the second half of 2015. Gross profit was USD 1.17 billion, down 23 percent year-on-year (October-March) but 8 percent higher than in the previous half-year (April-September 2015).
Gross trading margin was 2.7 percent, signifying a continuation of Trafigura’s recent run of strong profit performance. EBITDA, which the company sees as an accurate measure of operating performance since it strips out investment gains and impairments, was 11 per cent higher than the second half of 2015 at USD821 million. Group revenue in the first half was 9 percent lower than in the first half of 2015 as higher volume was more than offset by the effect of lower commodity prices.
Trading was especially strong in the Oil and Petroleum Products division, where volume handled daily topped 4 million barrels for the first time in Trafigura’s history. The division’s traded volume of just over 4 million barrels per day was 46 per cent higher than the first half of 2015, having grown consistently for the past four years and doubled since 2012.
Jeremy Weir, CEO of Trafigura, commented: “This is another highly satisfactory result, showing a continuation of the strong performance delivered in 2015 even if we did not match the numbers achieved in the exceptional trading conditions in the first half of 2015. We developed significant new business in oil and improved profitability while maintaining volumes and market share in metals and minerals.
“We were able to reduce capital expenditure as some of our major infrastructure projects moved from construction into commercial operation, and we navigated a management transition after the death of our founder Claude Dauphin last year. A new leadership has been installed and a number of improvements made to our corporate governance, giving us confidence that the company is set to continue to perform well over the months and years to come.”
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Notes to editors
Founded in 1993, the Trafigura Group has become one of the world’s leading independent commodity traders, specialising in the oil, minerals and metals markets. The company has achieved substantial growth in recent years, growing revenue to USD97.2 billion in 2015. Primary trading activities are the supply and transport of oil and petroleum products and metals and minerals. The trading business is supported by industrial and financial assets including global oil products distribution company Puma Energy; joint venture company DT Group; global terminals operator Impala; Trafigura’s Mining Group and Galena Asset Management. The Trafigura Group is owned by 600 of its 5,300 employees who work in 37 countries around the world. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.