Singapore, 7 June 2017 - Trafigura Group Pte Ltd, ("Trafigura"), a market leader in the global commodities industry, has today announced profitable growth for the first half of its financial year ended 31 March 2017, with volume increases in both Oil and Petroleum Products and Metals and Minerals trading divisions matched by strong profits from the company’s trading activity.
Gross profit was USD 1,238 million, an increase of 6 percent on the gross profit of USD1,173 million recorded in the first half of 2016. Gross profit margin in the half-year was 1.8 percent compared to 2.7 percent in the first six months of 2016, illustrating the current highly competitive conditions in commodities markets. EBITDA, which the company sees as the most accurate measure of operating performance since it strips out investment gains and impairments, was 12 percent higher than the half-year 2016 at USD921.4 million.
Total volumes traded in Oil and Petroleum Products rose by 25 percent from the year-ago period to an average of 4.995 million barrels per day, while in Metals and Minerals total volume rose by 37 percent. This growth was reflected in a 53 percent increase in revenue to USD67,317 million from USD44,093 million in the first half of 2016.
Jeremy Weir, CEO of Trafigura commented: “The Group’s performance in the first half demonstrated the benefits of our diversified business model, as a fall in gross profit in our Oil and Petroleum Products trading division was more than offset by a sharp increase in gross profit from the Metals and Minerals trading division.
“We were also successful in enhancing our access to liquidity from our banks and to capital from the public markets at a time of strong demand for working capital. In addition we reduced capital expenditure and made significant progress in reducing our leverage, while continuing the ramp-up of our most important infrastructure assets,” he concluded.
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Notes to editors
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; 50 percent owned DT Group which specialises in logistics and trading; and Galena Asset Management. The Company is owned by around 600 of its 4,100 employees who work in 61 offices in 36 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD98.1 billion in 2016. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.