Trafigura annual net profit rises to $1.1 billion

Trafigura logo is pictured in the company entrance in Geneva March 11, 2012.  REUTERS/Denis Balibouse

Commodities trading firm Trafigura reported on Monday an increase in annual net profit as it racked up record oil trading volumes, as well as an increase in metals.

The firm said it made a net profit of $1.1 billion, up 6.5 percent from the year before. Gross profit was $2.6 billion, an increase of 28 percent year-on-year, representing a gross margin of 2.7 percent compared with 1.6 percent the year before.

The company said the volume of commodities traded by its main divisions – oil and metals – increased by 17 percent to 198.4 million tonnes from 169.5 million.

“Trafigura is well positioned to cope with distressed markets and to seize new opportunities, thanks to our focus on both oil and metals and minerals trading, our sound finances, strong liquidity and careful risk management,” Jeremy Weir, Trafigura’s chief executive officer, said in a statement.

Revenue totaled $97.2 billion, a decrease of 23 percent from the year before, reflecting a sharp decline in commodity prices over the past year. Trafigura’s financial year runs from September to September.

Prices for major commodities, ranging from copper to corn and crude oil, witnessed one of their most rapid year-on-year falls since the depths of the 2008 financial crisis in the 12 months to Sept. 30, dropping by 30 percent. .TRJCRB

The company said it spent $775 million on share buybacks, down from $885 million the year before, but more than double the $357 million it spent back in 2011.

Trafigura said it planned to increase spending on buybacks in 2017 provided it generated enough profits.

The company said current liabilities, including short-term bank borrowings declined to $25.6 billion in 2015, compared with $26.23 billion the year before.

[reuters]

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