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Commodity trader Trafigura reports half-year net profit of $5.5 billion, up 108% y-o-y

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(Kitco News) - Commodity trading, metals and mining group Trafigura reported today that for the six-month period ended 31 March 2023 (HY23), the company generated net profit of USD5,544 million, more than double the figure of USD2,659 million registered at the same time a year earlier.

The company’s underlying earnings before interest, tax, depreciation and amortization (EBITDA) rose 73% y-o-y to USD8,136 million in HY23, up from USD4,713 million in HY22.

However, Trafigura said that revenues were 23% lower at USD131,335 million in HY23, down from USD170,609 million in HY22, adding that this decline was a result of lower average commodity prices and trading volumes.

According to a press release, the company’s non-ferrous metals and bulk minerals division delivered a robust performance overall in challenging market conditions.

Trafigura also noted that its oil and petroleum products division delivered another robust performance, quickly adapting to changing market conditions and trade flows, while the natural gas and LNG team had a strong half year providing security of supply to customers in a stressed market environment.

Moreover, the company’s power trading activities continued to gain momentum and recorded a significantly higher profit during the period.

Looking ahead, CFO Christophe Salmon said, “While we expect our supply chain management services to remain in demand during the second half of the year, we are seeing a return to more normal and calmer market conditions. Therefore, we expect the pace of our growth to slow compared to the previous 12 months.

“We are also conscious that there are a growing number of headwinds, including inflationary pressures, higher interest rates and ongoing geopolitical tensions, which could impact global economic growth.”

Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura also owns and operates a number of industrial assets. Trafigura is owned by its employees and employs over 12,000 people working in 61 countries.

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