Commodity trading giant Trafigura saw its profits tumble 70% in the six months to March though this was still one of its best half-years ever.
Net profit in the six months to the end of March was $1.5bn, against US$5.5bn in the first half of 2023 and US $2.7bn in 2022, as the huge gains it saw in commodities sparked by the Ukraine war started to unwind.
Privately owned, Trafigura said revenue fell 5% to US$124 billion in the half year to March 2024, underlying profits were down by 47% to US$4.3 billion and net profits by 70% to US$1.5 billion.
Performances were nonetheless said to be robust in all divisions: Oil and Petroleum Products, Metals and Minerals, Gas Power and Renewables, as well as shipping.
“Demand for the Group’s services remained high as customers continued to rely on Trafigura to navigate complex markets,” said the statement.
Total traded volumes of oil and petroleum products, including natural gas and LNG, were 7.2 million barrels per day, up 15%, with higher trading volumes in crude oil, driven by supply and marketing agreements with refineries in Europe.
Nyrstar’s metals processing operations were weak and faced lower commodity prices, high energy costs and significant global competition.
Trafigura also confirmed it had settled a case with billionaire property magnates the Reuben brothers, which was linked to an alleged US$600 million nickel fraud.
Jeremy Weir, Trafigura’s executive chairman and chief executive, 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."