• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 13 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 1 day China To Promote Using Wind Energy To Power Heating
  • 3 hours How many drilling sites are left in the Permian?
  • 13 hours "Undeniable" Shale Slowdown?
  • 24 hours Climate Change Protests
  • 22 hours Gas Flaring
  • 16 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 14 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 4 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 2 days Oil at $40
  • 5 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 12 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 2 days Negative Gas Prices in the Permian
  • 2 days Japan’s Deflation Mindset Could Be Contagious

Breaking News:

Guaido Takes Strides To Topple Maduro

U.S. Energy Consumption Hits All-Time Record

U.S. Energy Consumption Hits All-Time Record

The United States consumed 101.2…

The Firm Floor Under Oil Prices

The Firm Floor Under Oil Prices

The continued slowdown of US…

Trafigura’s Profit Dips, Oil Trade Volumes Jump

Pipeline

Commodities trader Trafigura said on Wednesday that its profit for the year ending 30 September 2016 dropped by 12 percent to US$975 million on the back of low commodity prices, but oil trade volumes increased.

Trafigura’s revenues came in at US$98.098 billion, compared to US$97.237 billion in the same period of 2015. EBITDA, however, dropped by 13 percent to US$1.628 billion, amid intense competition and challenging commodities market.

In addition, Trafigura wrote down the balance-sheet value of certain assets as the depressed price environment affected its industrial assets. Trafigura booked impairments of US$365 million in the fiscal year to September.

In the Oil and Petroleum Products Trading Division, volumes of trade grew to a daily average of 4.3 million barrels, up by 42 percent from the 3 million barrels handled in the 2015 fiscal year.

Tanker rates dropping to historic lows led to increased global arbitrage business, Trafigura said in its annual report today.

“Russian crude remained an important component of the book, thanks to our developing commercial relationship with Rosneft,” the group said.

Trafigura also increased its business with Chinese state-owned oil corporations and a saw a surge in purchases by private-sector Chinese refineries newly licensed to import crude. One of the group’s priorities for the immediate future is to extend its business in arbitrage flows from the US and Latin America into Asia.

Related: How OPEC Have Papered The Oil Market Cracks

Commenting on the 2016 fiscal year volumes trading performance, chief executive Jeremy Weir said in the statement:

“Conditions remained broadly favorable for trading in the oil market, featuring sustained price volatility and over-supply.”

Looking ahead, Trafigura expects challenging conditions in commodities markets to persist in 2017. The group will continue to focus on physical trading, logistics, and risk management, CFO Christophe Salmon said.

In October, Trafigura sold five medium-range oil tankers to a Chinese bank, which marked the group’s exit from owning product tankers —at least for now.

By Tsvetana Paraskova 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