Singaporean commodity trading giant Trafigura saw profits slide in the first half of its financial year, with underlying earnings nearly halving as markets normalised following a period of record earnings over recent years.
Underlying EBITDA totalled $4.3bn in the six months to 31 March, down from $8.1bn in the first half last year, while net profit dropped to $1.5bn from $5.5bn previously.
Nevertheless, this was still the its fourth-highest ever net profit for a half, and demand for the group’s services “remained high” the company said.
“In a less stressed environment than the same period a year ago, demand for our services remained strong and we recorded a net profit that was one of our best first half year results on record,” said chairman and chief executive Jeremy Weir.
Previous year’s results have been supported by substantial disruption across global commodity markets, on the back of Russia’s invasion of Ukraine.
Revenues during the period was down 5% on the year before at $124.2bn as higher trading volumes were offset by lower commodity prices.
Total traded volumes of oil and petroleum products were up 15% year-on-year at 7.2m barrels per day, while non-ferrous metals volumes were steady at 10.4m tonnes, and bulk mineral volumes rose 25% to 54.7m tonnes.
“We are optimistic about the group’s future growth prospects and ability to deliver value for our stakeholders and more than 1,400 employee shareholders,” said chief financial officer Christophe Salmon. “This positive view reflects the ongoing strength of our financial position and the support we enjoy from a broad range of financial institutions globally.”
