Global commodities trading giant and sometime bête-noire of the BBC, Trafigura Group Pte Ltd has boosted revenues for the year to September to US£315bn, up considerably from the US$213bn generated in the corresponding period a year ago.
Profit came in at US$7bn, more than double the previous year, as volatility as a result of the Ukraine war combined with the beginnings of a global recovery to boost demand.
However, the total volume of commodities traded in 2022 was lower year-on-year, due to a reduction in oil and petroleum products volumes relating to Russian trade.
“The past year saw our people work hard to solve the disruptions created by unprecedented market volatility and the big structural shifts that are shaping our industry,” said Jeremy Weir, Trafigura’s chief executive in the results statement.
“It has shown that what we do – connecting vital resources to help power and build the world – has not only become more complex but also more critical and in demand than ever before," he added.
Trafigura responded to new rules and regulations that came into force across multiple jurisdictions following Russia’s invasion of Ukraine. Long-term contracts with Russian state-owned entities were terminated ahead of sanctions taking effect in May and its sole investment in Russia - a 10% minority stake in Vostok Oil – was exited in a transaction that completed in July.
Nala Renewables, a 50:50 joint venture between Trafigura and fund management group IFM Investors, continued to develop a number of solar power, onshore wind and battery storage investments to progress towards its 4GW renewable energy target by 2025. Trafigura has also made a string of early-stage investments in companies involved in new energy technologies and continues to see hydrogen‑derived fuels as one of the key commodities of the future.
In its first full year of operation, the group’s Carbon Trading team continued to build its capabilities and investments across regulatory and voluntary carbon markets, including becoming an anchor buyer of nature-based carbon removals from the Delta Blue Carbon mangroves restoration project in Pakistan.
Longer-term sustainability targets will be announced in the group’s 2022 Sustainability Report, to be published in January.