Commodity trader Trafigura almost doubles profits to hit record in fiscal 2021

The Trafigura logo is pictured at the entrance to the company in Geneva, Switzerland on March 11, 2012. REUTERS / Denis Balibouse / File Photo

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  • Oil traded volumes jumped 25% to record 7 million bpd
  • Record dividend to employees of $ 1.1 billion
  • Puma Energy’s Foreign Currency Loss of $ 716 million
  • Impairments totaled $ 709 million on Nyrstar, Corpus Christi, Puma

LONDON, Dec. 8 (Reuters) – Global commodities trader Trafigura Group posted record net profit for the second year in a row in its 2021 fiscal year after strong performance across all of its divisions and significant market disruptions in the market. ‘energy.

The Geneva-based company made a net profit of $ 3.1 billion for its fiscal year ended September 30, nearly double the previous year.

“Above all, the scale and resilience of our business has benefited from a flight to quality, both in terms of customer relationships and financial liquidity,” said Jeremy Weir, Managing Director of Trafigura, in the report. annual.

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The COVID-19 pandemic shocked markets last year and saw a number of smaller competitors pull out or downsize, allowing larger players to step in and expand bank credit lines.

Trafigura’s total profit before interest, taxes, depreciation and amortization (EBITDA) increased 13% to $ 6.9 billion. Its energy segment – primarily petroleum, refined products and natural gas – contributed 64% to EBITDA.

Its metals and minerals division contributed 36% with an “exceptional year” for its copper team due to significant growth in demand and a supply shortfall.

The group’s revenue was $ 231 billion in 2021, up from $ 147 billion in 2020 when commodity prices collapsed due to the COVID-19 pandemic.

The company recorded write-downs of $ 709 million, down from $ 1.57 billion in 2020. The largest concerned the loss-making Nyrstar smelter with $ 125 million, and the port of Corpus Christi in Texas with 158 million additional dollars related to right-of-use assets.

In addition, Trafigura’s revenue was reduced by an additional $ 716 million after absorbing foreign exchange losses from Puma Energy, which resulted in an increase in group equity.

Trafigura has agreed to buy Angolan state-owned oil company Sonangol 31.78% stake in Puma Energy, an intermediary and loyal company, with Trafigura’s stake increasing to 93%. Read more

Trafigura said the number of employee shareholders has increased since the buyout of family members from founder and former CEO Claude Dauphin in 2020. This year employee shareholders have reached around 1,000 compared to 850 in 2020.

Payments to employees hit a record $ 1.1 billion, nearly double dividends in 2020 to $ 586 million. The group’s equity rose 36% to more than $ 10 billion.

Its traded oil volume rose 25% year-on-year to 7 million barrels per day (bpd), increasing in all regions as global demand rebounded with easing lockdowns while its non-metals Ferrous traded increased 9% to 22.8 million tonnes and bulk minerals were up 8% to 82.7 million tonnes.

Crude oil volumes rose 22%, partly driven by new offtake deals in Canada, Latin America and West Africa and an agreement to supply the UK oil refinery at Lindsey. He added that the Midland shale oil basin in Texas remained at the heart of the activity.

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Reporting by Julia Payne Editing by Marguerita Choy

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