Trafigura announces strong 2014 annual results alongside a confident future outlook
Amsterdam, 8th December, 2014 - Trafigura Beheer B.V., (“Trafigura”), a market leader in the global commodities industry, has today announced results for the year ended 30 September, 2014. They show profitable growth and increased profit margin, alongside significant long term investment in infrastructure, logistics and client relationships.
Revenue in 2014 totalled USD127.6 billion, a decrease of 0.4 percent on the 2013 figure of USD128.1 billion recorded on a like-for-like basisi. Gross profit rose on a like-for-like basis by 14 percent to USD2.045 billion, with a particularly strong increase in Oil and Petroleum Products more than offsetting a decline in Metals and Minerals. Gross profit margin reached 1.6 percent compared with a figure of 1.4 percent calculated on the same basis for 2013. Net profit for the year was USD1.080 billion, a decrease of 50 percent on 2013, due mainly to the deconsolidation of Puma Energy from the Group balance sheet that occurred at the end of the previous fiscal year.
Two significant divestments during the year generated a pre-tax gain of USD587 million. These were the sale to Buckeye Partners LP of an 80 percent interest in Trafigura AG’s oil storage terminal in Corpus Christi, South Texas, and the sale of Trafigura’s bitumen business to Puma Energy.
EBITDAii rose 13 percent to USD1.309 billion, compared to USD1.155 billion in 2013 on a like-for-like basis. EBITDA figures are presented as the most appropriate measure of the company’s operating profit given the growth of the fixed asset portfolio and the consequent increase in depreciation and amortisation.
Trading volumes rose in both trading divisions, with particularly strong performance in Oil and Petroleum Products, in Refined Metals and in Coal. Total volume of Oil and Petroleum Products traded increased by 2 percent to 120.4 million tonnes, with Trafigura now trading more than 2.5 million barrels a day. Metals and Minerals volumes overall were up by 49 percent from 32.9 to 49.1 million tonnes. This was due to strong growth in Coal where Trafigura is now a top three player in global trade. Metals volumes increased from 9.7 to 11.3 million tonnes, driven by sales of refined metals.
“This was a creditable performance in challenging trading conditions,” said Jeremy Weir, CEO of Trafigura. “We built further on our leading position in a number of key commodities and at the same time realised a significant gain from our investment in Corpus Christi and continued our programme of targeted investments in logistics and infrastructure in support of trade flows.”
Trafigura subsidiary Impala Terminals acquired, in partnership with Mubadala Development Company, a controlling stake in the Porto Sudeste iron ore port in Brazil. Impala Terminals also completed or continued an array of investment projects in Latin America and Africa. Capital investment during the year was USD1.7 billion, a decrease from USD2 billion in 2013. A significant expansion of capacity at the company’s MATSA mine in the southern Spanish province of Andalucia, including a doubling of processing capacity, is now nearly complete, and a new mine is being developed at the site, the first to be developed in Spain in many decades.
The company further strengthened its liquidity position during 2014, adding 22 new banks to its roster totalling 135 banks that provide total credit lines of USD46 billion, of which USD17 billion are unutilised, ensuring resilience and access to liquidity in all market conditions. The year also saw Trafigura significantly expand its provision of financial support to valued counterparties in the form of multi-year pre-paid offtake arrangements, with its short-term prepayment portfolio doubling to USD2.301 billion, and a further increase of more than USD200 million in long-term prepayment facilities.
“We believe access to capital is a competitive advantage for a commodities trading firm,” said Jeremy Weir. “We are focussed on ensuring we can fund our working capital requirements at all times, exercising tight discipline in allocating capital, and recycling funds from mature investment projects into new ones.
“We remain focused on creating a business diversified by geography, product, customers and financing that is resilient through the widest variety of economic and business circumstances. Our ongoing investments in IT and risk management capabilities help us to operate profitably and deliver reliable trade flows even in unpredictable and rapidly changing market conditions. We are continuing to make long-term decisions to invest in infrastructure, logistics and the important client relationships that we believe to be key to success. Despite challenging conditions in some commodity markets, we remain confident in the long-term outlook for growth in demand for commodities and for the reliable, efficient and responsible end-to-end services we provide,” concluded Jeremy.
To view a video interview with Jeremy Weir about the Annual Results and to download a copy of the Annual Report visit: www.trafigura.com/financials
For high resolution images visit: https://www.flickr.com/photos/trafigura_images/
For further information please contact: Trafigura’s Global Press Office: +41 22 592 4528 or firstname.lastname@example.org
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 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 5,600 employees who work in 36 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. www.trafigura.com
iThe like-for-like comparison excludes in both years significant divestments of previously consolidated subsidiaries and the related revaluation gains following their deconsolidation. Specifically, these divestments related to Puma Energy and the Condestable mine in 2013 and to two events in 2014: the sale of an 80 percent interest in our oil storage terminal in Corpus Christi, South Texas, and the sale of Trafigura’s bitumen business to Puma Energy Holdings in March, 2014.
iiEBITDA is operating profit excluding share in results of equity-accounted investees, depreciation and amortisation, gains/losses on divestments of subsidiaries, equity-accounted investees and other investments, impairment losses and other operating income and expense.