Trafigura publishes 2024 Annual Results

Singapore, 13 December 2024 – Trafigura Group Pte Ltd (“Trafigura” or “the Group”), a market leader in the global commodities industry, today released results for its financial year ending 30 September 2024.

Performance

Net profit for the period of USD2,759 million reflected strong contributions from Trafigura’s core divisions - Oil and Petroleum Products; Metals, Minerals and Bulk Commodities; and Gas, Power and Renewables - as well as Shipping and Chartering.

Group equity stood at USD16.3 billion, providing a solid foundation for future growth and resilience against market fluctuations.

Revenue was flat versus a year earlier at USD243,202 million, as lower commodity prices were offset by higher trading volumes. The Group’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 36 percent to USD8,089 million from USD12,686 million in the prior year period, as we saw a return to more normalised market conditions. 

At an average of 6.8 million barrels per day, total traded volumes of oil and petroleum products, including natural gas and LNG, were around eight percent above the previous year’s level. The increase was mainly driven by higher crude oil, gasoil and LPG volumes.

In non-ferrous metals, volumes rose four percent year-on-year to 21.9 million tonnes, while bulk minerals volumes increased by 14 percent to 102.2 million tonnes. The growth in bulk commodity volumes was driven primarily by iron ore.

Shipping and Chartering had another high-performing year, supporting our commercial teams to deliver oil, gas and metals while also serving a growing portfolio of third-party customers. The Carbon Trading business continued to grow with the first credits produced from our investments in nature-based removal projects.

These achievements and the strong underlying performance of the business were, however, marred by the extremely disappointing discovery of serious misconduct by individuals in our Mongolian oil business, involving deliberate manipulation of data and documents and concealment of overdue receivables.

As disclosed in October 2024, the Group has recorded a total loss of USD1.1 billion, USD358 million of which is reflected in the FY2024 results, with the balance recorded as prior period adjustments. An external investigation remains ongoing. Other higher-risk offices and lines of business have been reviewed and the Group is confident that these issues are isolated to our Mongolian office.

The wrongdoing in Mongolia was uncovered as a result of increased scrutiny in recent years. This work is being significantly built on and extended as a matter of urgency, to review, test and improve end-to-end control framework, systems, risk and governance structures. Remedial actions will be subject to external assurance, reporting to the Audit Committee. 

Acquisitions and Investments

In July 2024, the Group acquired Greenergy, a leading supplier of transport fuels in the UK and a major European biodiesel producer. After the financial year end, in November 2024, the purchase was also completed of a strategic minority interest in the Fos-sur-Mer refinery in southern France from Esso. The Group maintains a prudent approach to acquisitions and investments, focusing on those that are complementary to core trading activities. 

Management Changes

As part of the Trafigura Board’s focus on succession planning, FY2024 started with a new Executive Committee that included the appointment of Stephan Jansma as Chief Financial Officer, Emma Stroud as Chief Operating Officer and Ignacio Moyano as Chief Risk Officer. A new Operating Assets division was created, led by Jiri Zrust; Andrew Starkey was appointed Chief Financial Officer, Asia Pacific; and other external talent were brought in for a number of senior positions in Credit, Risk and Risk Technology.

Towards the end of FY2024, the Board announced the appointment of Richard Holtum as Chief Executive, effective 1 January 2025.

“I would like to extend my congratulations to Richard on his appointment. I am confident that he is the right leader to drive Trafigura forward and further build on the Group’s success. These changes mark the transition to a new generation of leaders at the helm of the business,” said Jeremy Weir, Executive Chairman and Chief Executive Officer of Trafigura, who will become Chairman of Trafigura’s Board from 1 January 2025. 

Outlook

The Group’s strong balance sheet and access to financing positions us well to capitalise on the trading opportunities arising from geopolitical and economic shifts in global commodity markets. Customers are increasingly seeking supply chain managers who can guarantee a reliable supply while upholding strong sustainability standards.

The new financial year has started positively. However, the coming period may present unexpected geopolitical and macroeconomic challenges, alongside new opportunities.

ENDS

To watch a video interview with Jeremy Weir and Stephan Jansma, Group CFO about the annual results and to download a copy of the Annual Report click here.

For further information please contact:

Trafigura’s Press Office: +41 (0) 22 592 4528 or media@trafigura.com

About Trafigura

Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through MorGen Energy and joint venture Nala Renewables.

The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, the Impala Terminals joint venture and Greenergy, supplier and distributor of transportation fuels and biofuels. The Group employs over 13,000 people, of which over 1,400 are shareholders and is active in over 150 countries.

Visit: www.trafigura.com