• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 17 mins Cpt Lauren Dowsett
  • 23 mins Charts of COVID-19 Fatality Rate by Age and Sex
  • 45 mins Wouldn't fall in demand balance it out?
  • 3 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 19 mins Why Trump Is Right to Re-Open the Economy
  • 2 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 11 hours Death Match: Climate Change vs. Coronavirus
  • 9 hours Free market or Freeloading off the work of others?
  • 4 hours Its going to be an oil bloodbath
  • 14 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 9 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 10 hours ‘If it saves a life’: Power cut to 1.5 million Californians

Trafigura Sees 92% Increase In Profit On Booming Oil & Gas Trading Business

oil storage

Trafigura’s six-month profit rose to 92 percent as its oil and gas trading desks offset weakness in other divisions, according to Reuters.

The hefty increase in profits for the six-month period ending March 31 were the direct result of the major volatility this year in oil prices, as well as its heavy presence in US oil exports, which have seen a marked increase.

Trafigura profits, as high as they were, would have been even higher were it not for some of its other segments that did more poorly, such as metals and subsidiaries Puma Energy and Tendril Ventures.

While the profit is remarkable compared to first-half 2018—it should be noted that H1 2018 profit was the lowest in years, at $221.8 million. The reporting period represented a 50% decrease in profits from the previous period.

By comparison, Trafigura’s net profit for the six months ending March 31 was $425.7 million. Gross profit for that six-month period rose 50% to $1.47 billion.

Trafigura is the second largest oil trader behind Vitol, and was the largest exporter of US crude oil and condensate in 2017. Since then, Trafigura has focused on the United States to avoid the tighter commodity derivative trading regulations in Europe that come with the MiFID II.

Trafigura handles more than 5.5 million barrels per day of oil and other petroleum profits.

 Trafigura’s US export dealings is set to increase with its latest project in the Gulf of Mexico in Kleberg County. The terminal, if successfully built, will load oil onto VLCCs 12 miles away from shore, in federal waters, which would make it exempt from state regulations, which require companies to eliminate VOCs. The project is still awaiting approval, according to Caller Times.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News