Trafigura announces half year results
Amsterdam, 16 June 2014 - Trafigura Beheer B.V., ("Trafigura"), a market leader in the global commodities industry, has today announced strong financial results for the first half of its financial year ended 31 March 2014. A net profit of USD470 million for the six-month period was an increase of 24 per cent over the same period a year ago, on the back of strong volume growth and healthy trading margins.
The overall gross margin in the period was 1.5 percent, unchanged from a year ago on a like-for-like basis.* Net turnover in the first half amounted to USD63,814 million, an increase of 3 percent on the like-for-like figure a year ago. Oil and Non-Ferrous and Bulk both made significant contributions to the Group's revenue, with Oil volumes rising by 7 percent year-on-year and with the division now regularly trading more than 2.5 million barrels per day, and Non-Ferrous and Bulk volumes growing by 67 percent due to an increase in bulk business including a pronounced rise in coal. Results from operating activities were USD635 million, an increase of 29 percent on the like-for-like figure of USD493 million a year ago.
"We see a world of opportunities for growth, driven by offering clients solutions that combine our trading and logistical expertise with investments in infrastructure where it is needed and with strong financial resources", said Claude Dauphin who became Executive Chairman of Trafigura during the half year. Jeremy Weir was appointed as CEO and Mariano Marcondes Ferraz was nominated to the Management Board to create a new management structure that is well suited to the current complexity and size of the company.
A number of the company's investments reached or neared completion during the half year, including Impala's Porto Sudeste iron ore project in Brazil, jointly controlled with Mubadala Development Company. When the port opens later this year the new supply will engender a more competitive global iron ore market and consolidate Trafigura's position as a major player in this market.
At Callao, the main port in Peru, Impala has just completed a USD174 million expansion project to boost capacity to blend and export the growing flows of non-ferrous concentrates from Peru's central mining belt. In Colombia, work is well advanced on Impala's USD 850 million investment in a multimodal transport system linking the country's main ports with its economic heartland by road, rail and a major barging operation along the Magdalena River to a purpose-built inland port at Barrancabermeja. When this starts full commercial operations over the next year, it will have a transformative effect on Colombia's international trade and competitiveness.
"In all of these cases, the investment in infrastructure assets adds value to our core trading business and improves the service we can offer our clients. It is also the clearest possible demonstration of our commitment to running a business that is successful and resilient through the business cycle and sustainable for the long term", said Jeremy Weir, CEO, Trafigura.
For further information and a copy of the Interim Report visit: www.trafigura.com/financials
*Like-for-like comparison uses figures for the first half of 2013 in which Puma Energy is not consolidated but is treated as an equity-accounted investee. This reflects the deconsolidation of Puma Energy from the Trafigura Group balance sheet in September 2013.
Further Information
For further information please contact:
Trafigura's Global Press Office: +41 22 592 4528 or media@trafigura.com
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. Primary trading activities are the supply and transport of oil and petroleum products and non-ferrous and bulk commodities. 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 over 700 of its almost 9,000 employees who work in 58 countries. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.