• Home
  • News
  • Trafigura releases half year results showing an exceptional performance in volatile markets
  • 2020 June 14 13:47

    Trafigura releases half year results showing an exceptional performance in volatile markets

    Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry, released its half year results. They show a strong performance by both trading divisions driven by significant volatility and dislocations in the global market, which make the physical trading and risk management activities of specialist companies such as Trafigura more relevant than ever.

    Trafigura delivered a healthy profit for the first half of its 2020 financial year, 1 October 2019 to 31 March 2020, led by an exceptionally strong performance in physical oil trading.  Net profit for the period rose 27 percent to USD542 million from USD426 million a year earlier.*

    Group revenue for the period was slightly down from the same period of the previous year, at USD82,960 million, reflecting lower average commodity prices. Gross profit was USD3,126 million, compared to USD1,472 million, while gross profit margin for the period was 3.8 percent compared to 1.7 percent a year ago.  EBITDA for the period was a record USD2,411 million which, excluding the impact of IFRS 16 on the first half of this financial year, equated to USD1,926 million, compared to USD1,112 million in the first half of 2019.

    Both core trading divisions performed well. The Metals and Minerals division maintained a robust profitability, trading higher volumes in refined metals and bulk minerals, while the Oil and Petroleum Products division delivered its strongest first-half profit performance on record.  The Shipping and Chartering business also delivered a very strong performance having positioned itself strategically with an increased fleet and a sizeable equity position to benefit from the expected IMO 2020 market disruption, which did materialize. Disruptions caused by OFAC sanctions that removed available VLCC tonnage and the deep contango market arising from COVID-19 oil demand drop supported freight rates and further enhanced the performance.

    “At times like these, the physical trading and risk management activities of specialist companies such as Trafigura become more relevant than ever,” said Christophe Salmon, Trafigura’s Group CFO.  “Our core competence lies in understanding the global supply chain in great detail, in having highly skilled trading teams and in managing infrastructure such as oil storage facilities, pipelines and freight capacity.  During this period, our market intelligence on the impact of COVID-19 and of the decisions by OPEC and other oil producers on demand and supply, enabled us to act efficiently and effectively. This superior market understanding combined with our physical infrastructure and our capacity to manage the supply chain were key in balancing the oil market during these unprecedented times.”

    Beyond the trading performance, other highlights in this half year included:

    • The successful integration of zinc and lead refining company Nyrstar, following the company’s financial restructuring and absorption into the Trafigura financial statements in 2019. Nyrstar made a positive contribution of USD370 million to Trafigura’s gross profit and USD72 million on the Group’s EBITDA for the first time, showing the benefits of the turnaround plan being implemented since its consolidation within the Group last year. However, as expected as part of the company’s recovery plan, Nyrstar recorded a loss of USD137 million which is fully reflected in Trafigura’s profit for the period.
    • A continuation of the Company’s disciplined approach to valuation of fixed assets. An assessment of the negative impact of the COVID-19 pandemic on global energy demand and increased global crude oil supplies causing refinery margins to reach record lows, led to an impairment of USD287 million in the value of the Company’s stake in the Nayara Energy oil refining operation. At the same time, the value of the holding in downstream company Puma Energy, having reported a loss for its 2019 financial year, was USD1,452 million on 31 March 2020, USD293 million lower than as at 30 September 2019.
    • A strong start to operations of TFG Marine, the new joint venture with ship-owners Frontline Ltd. and Golden Ocean Group Ltd., which aims to build a significant share in a consolidating global bunker fuel market.
    • A smooth transition of large parts of Trafigura’s operations to home-based working as the pandemic forced the reduction in use of office facilities. This underlined the benefits of the significant investment the Group has made in IT infrastructure around the world in recent years.
    • Ample access to liquidity and rigorous financial control, including the simultaneous refinancing of two core credit facilities and the issue of notes with long-dated maturities in March 2020 at the height of the COVID-19 pandemic. As at 31 March 2020, Trafigura had access to bank credit lines totalling USD61 billion with significant available headroom.

    In terms of the outlook for the second half of the financial year, the turbulent and uncertain market conditions described in the Interim Report continue to prevail, as governments work to bring the COVID-19 pandemic under control and to restart the global economy.

    “We've been very thankful for the dedication, for the focus and for the commitment of all our staff as has been demonstrated during the first half year,” said Christophe Salmon.  “Trafigura is a highly resilient company that is providing reliable and valuable services to producers and consumers of vital commodities. Those services were the wellspring of our revenues and profits in this reporting period, and we see every reason to be confident that this will continue to be the case for the second half of our financial year,” concluded Christophe Salmon.




2022 December 9

18:21 IAA PortNews’ summary of past week news
18:06 Temasek's PSA considers multi-billion dollar exit from Hutchison - Reuters
17:44 Throughput of Russian seaports in 11M’2022 climbed by 0.6% YoY to 768.2 million tonnes
17:26 Port of Vancouver tests biofuel bunkers - Ship & Bunker
17:06 DSME unionists vote for wage and collective bargaining agreement - BusinessKorea
16:48 Onezhsky Shipyard launches crab catching ship Kapitan Yegorov
16:31 Fincantieri delivers the third of four ships which Virgin Voyages
16:09 Twenty oil tankers halted near Istanbul in insurance dispute - Reuters
15:45 China eases anti-covid measures for seafarers and port workers - Seatrade Maritime News
15:24 More LNG carrier orders anticipated next year - BusinessKorea
15:24 Shipyards of Russia’s North-West region note continued demand for construction of civil ships — Bank of Russia
15:02 IG P&I Clubs warns of the risks of using multiple ship to ship transfers to mix the origin of the cargo under “the price cap”
14:42 TotalEnergies withdraws the representatives of the company from the board of PAO Novatek
14:41 Russian Prosecutor General's Office files new lawsuit regarding FESCO shares — media
14:35 MAN Energy Solutions enters innovation partnership with Anglo-Eastern
14:13 Solstad awarded five-year contracts for two PSVs
13:02 Spot rates out of Far East almost 2000 USD cheaper per FEU than long-term rates - Xeneta
12:45 FuelEU Maritime can do more to accelerate early action for shipping decarbonisation - World Shipping Council
12:44 Norebo to have Arctic krill vessel built abroad
12:19 MacGregor receives two large orders for heavy-duty cranes and electric transloading cranes
11:35 ZIM starts new feeder service between Poti Port and Istanbul
11:30 Port of HaminaKotka cargo turnover in January-November 2022 rose by 10% YoY
10:58 DP World and Puntland Government sign construction agreement to upgrade Port of Bosaso
10:21 Transocean announces $1.04 bln in contract awards for two ultra-deepwater drillships
10:06 Programme for construction of ships under Baimsky GOK project to be approved in mid-2023
10:01 Maersk Tankers’ Intermediate pool attracts new partner
09:45 Prosafe signs contract with Petrobras for the provision of the Safe Zephyrus semi-submersible vessel
09:28 RF Government allocates RUB 37.7 billion for the comprehensive development of Murmansk Transport Hub

2022 December 8

18:37 Port of Melbourne reaches next stage in remediation of Swanson Dock West
18:07 APM Terminals in Nigeria announces management changes
18:00 Contracts for construction of 5th and 6th icebreakers of Project 22220 may be signed in December 2022 – Vyacheslav Ruksha
17:44 Hyundai Heavy Industries to develop ammonia FSRU - BusinessKorea
17:39 Academy of Industry Markets welcomes to LNG Market online course
17:34 CMA CGM may double methanol-fuelled boxship order - Ship & Bunker
17:22 Stockholm Norvik Port starts new train service
17:16 Freeport of Ventspils cargo turnover in 11M'2022 increased by 32% YoY to 13.3 million tonnes
16:50 NSR fleet of icebreakers to number 17 units by 2030 and 22 units by 2035 – Vyacheslav Ruksha
16:47 Terminal operators upgrade rail-shortsea connection at Rotterdam
16:27 Plan for NSR development until 2035 foresees creation of container shipping fleet numbering 9 containerships of Russian transit operator
16:05 OOCL presents 2023 OCEAN Alliance products
15:28 Oil tankers with P&I club insurance piled up at The Bosphorus Strait
15:25 Oboronlogistics to continue acting as cargo agent for two ferries operating on Ust-Luga-Baltiysk line
14:46 Total dividends paid by CPC-R this year to exceed RUB 66 billion
14:23 TAQA, ADNOC, and Mubadala complete transaction for stake in Masdar Clean Energy Powerhouse
14:03 BCG and ABS combine expertise to support marine and offshore decarbonization
13:43 Tallink takes delivery of ferry MyStar
13:28 SCZONE signs 7 MoUs for green fuel production
13:02 Shekou Container Terminals implements Portchain Connect
12:43 Equinor wins commercial-scale offshore wind lease in California
12:31 MABUX: Bunker Weekly Outlook, Week 49, 2022
11:58 Sevmorput is about to complete its second subsidized voyage from the Far East to Saint-Petersburg with 46-pct loading
10:55 Eurochem is ready to transfer its ammonia shipment terminal from Estonia to Russia
10:09 INTERCARGO issues statement on IMO decarbonisation measures
09:42 ADNOC creates Low Carbon Solutions & International Growth vertical
09:30 New anchorage in Ust-Luga seaport is intended for ship-to-ship transshipment of fuel
09:22 AD Ports signs collaboration agreement with Africa Finance Corporation
08:27 CMA CGM to upgrade its Zanzibar Feeder service

2022 December 7

18:27 SBTi launches world-first roadmap for net-zero shipping by 2040
18:09 IPEM expects Russian Railways' network loading to fall by 4% this year
17:44 NYK conducts successful demonstration of new cargo hold monitoring system featuring IoT sensors