Commodities trader Trafigura smashed its previous profit records to make around $3.5 billion in the first quarter of its current financial year, four sources with knowledge of the matter told Reuters, benefiting from volatile energy prices.
The Geneva-based company does not publish quarterly figures but provides half-year and full-year reports. A spokesperson for Trafigura declined to comment.
The exceptional returns were driven by global energy shortages, stemming in part from sweeping western sanctions on Russia for its invasion of Ukraine, plus underlying tightness in global energy markets due to under-investment in new developments and infrastructure.
Extreme market dislocations and soaring prices, particularly in natural gas and liquefied natural gas (LNG), have proved a boon for major commodity trading houses.
The company's result in the first quarter that started on Oct. 1 is already half of its net profit of $7 billion during its previous full financial year and is 30% more than in the first half of its fiscal 2022.
Trafigura, the second-biggest independent oil trader after Vitol, moved 6.6 million barrels per day (bpd) of crude and refined products last year and 13 million tonnes of LNG.
The sources said the net profit figure took into account an impairment on a major nickel deal last year. Trafigura suspected a quality issue with its cargoes in October last year and said it found that at least 156 containers out of the more than 1,000 it financed did not contain the metal.
Trafigura said on Feb. 9 it had booked a $577 million charge relating to what it alleges is "systematic fraud" by a group of companies connected to and controlled by Indian businessman Prateek Gupta.
Gupta's team were preparing "a robust response" to the allegations, a spokesperson has said.
Recommended Reading
Comstock, Aethon’s 17 Western Haynesville Wildcats Make 112 Bcf to Date
2024-08-01 - Comstock Resources and Aethon Energy each added one well to Texas state production data on the new western Haynesville play, dubbed ‘The Waynesville.’ The oldest has surfaced 2.1 Bcf per 1,000 lateral ft to date.
EOG Testing 700-ft Spacing in Ohio’s Utica Oil Window, Sees Success
2024-08-05 - EOG Resources’ test at the northern end of its 140-mile-long north-south leasehold produced IPs similar to those from a nearby pad.
Where, When and How to Refrac—Weighing All the Options
2024-07-12 - Experts weigh in on strategic considerations when deciding how to rejuvenate production from a tired well.
In Ohio’s Utica Shale, Oil Wildcatters Are at Home
2024-08-23 - The state was a fast-follower in launching the U.S. and world oil industry, and millions of barrels of economic oil are still being found there today.
Beetaloo Juice: US Shale Explores Down Under
2024-06-28 - Tamboran Resources has put together the largest shale-gas leasehold in Australia’s Beetaloo Basin, with plans for a 1.5+ Bcf/d play. Behind its move now to manufacturing mode are American geologists and E&P-builders, a longtime Australian wildcatter, a U.S. shale-rig operator and a U.S. shale pressure-pumper.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.