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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
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.