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Bloomberg
Trafigura group earned a record $7 billion in its last financial year, more than the previous four years combined, as the commodities trader cashed in on wild price swings and arbitrage opportunities driven by Russia’s invasion of Ukraine.
Earnings more than doubled in the 12 months through September, Trafigura said, while revenue surged to $318.5 billion. The oil and petroleum products business had “an exceptionally strong year,†said Chief Financial Officer Christophe Salmon.
The volatility and disruptions sparked by the war have helped create the most profitable period in history for the companies that move energy, metals and crops around the world. Rivals including Glencore and Vitol group have also reported blockbuster results.
The trader paid dividends of $1.7 billion, which are mostly used to buy back preference shares through which Trafigura employees own the company. The value of preference shares in Trafigura soared by 247% over the year, Bloomberg reported last month. And Trafigura included more employees in its partnership during the year, increasing the number of shareholders from about 1,000 to more than 1,100.
The industry’s role in supplying key commodities has been thrown into the spotlight following the war in Ukraine as governments around the world increase their focus on resource security. Trafigura announced earlier this week it signed a $3 billion German government-backed loan for gas supply, which followed a similar but smaller deal to provide metals to customers in Germany.
Trafigura paid an effective tax rate of 12% on its profits, compared with 11% in them previous year.
“We are interfacing a lot more with governments and regulators on particular issues, just providing market intelligence — what we’re seeing, what we’re thinking — so they can formulate good policy,†CEO Jeremy Weir said.