By Ron Bousso
LONDON, May 3 (Reuters) - The world's top 11 energy
traders made around $77 billion in earnings last year, more than
double the previous year, amid huge price volatility, according
to Bernstein analysts.
Shell and BP , the world's two energy largest
traders in volume, delivered around $16.6 billion and $11.5
billion in earnings before interest, taxes, depreciation, and
amortization (EBITDA) last year from buying and selling oil,
natural gas and power, according to Bernstein estimates.
That equates to 20% and 16% of group earnings.
France's TotalEngeries' trading operations contributed $8.4
billion of EBITDA, or 14% of group earnings, Bernstein
calculated.
The three largest private commodity traders Vitol, Gunvor
and Trafigura made around $28 billion in earnings.
The group of 11 top traders made around $37 billion in 2021
and 2020, Bernstein estimates.
Trading operations help companies weather volatility in oil,
gas and power prices by buying and selling commodities and at
the same time using financial instruments to hedge trades and
bet on price changes.
Companies like Shell and BP do not report trading earnings
and typically keep details on their trading division opaque,
often offering investors only guidance in general terms.
BP reported on Tuesday profits of $5 billion in the first
three months of the year on the back of "an exceptional gas
marketing and trading result... and a very strong oil trading
result."
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(Reporting by Ron Bousso
Editing by Bernadette Baum)
Messaging: ron.bousso.reuters.com@reuters.net))
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