Trafigura’s profits have soared after the price of commodities surged following the Russian invasion of Ukraine.
In the six months ended 31 March, the group’s net earnings went up to £2.7bn – 22 per cent above 2021 levels – while revenue rose 73 per cent to around $171bn.
“The Ukraine crisis placed supply chains under unprecedented strain, especially in oil, gas and refined petroleum products, as buyers struggled to find alternative supply,” said chief financial officer Christophe Salmon.
Compared with 2021 levels, oil volumes have gone up by 14 per cent to 7.3 million barrels a day while non-ferrous metals increased by 16 per cent.
To cope with such a significant volume increase, Trafigura expanded its credit lines, reaching an all-time record of $73bn, of which $7bn were raised in the last six months.
Looking ahead, the company said “geopolitical turbulence” and “a more challenging macroeconomic outlook” will be its biggest challenges.
“Looking ahead, we see no let-up in the challenging market conditions. Global supply chains remain disrupted and the geopolitical situation will continue to be turbulent,” said chief executive Jeremy Weir.
“However, Trafigura has proved yet again that its business and global platform are resilient and agile to adapt rapidly to difficult market conditions. I am confident that this will continue to be the case for the full year.”
The results were published a month after the commodity giant announced it will open the UK’s first lithium factory for an undisclosed sum, City A.M. reported.