Louis Dreyfus Co (LDC) has seen full-year profit increase 12% as it took advantage of trading opportunities created by the US-Chinese trade dispute.
Group net profit reached $355m last year versus the $317m seen in 2017, while segment operating results increased 25.8% to $1.33bn.
“We delivered very good results for 2018, supported by a strong second half of the year, as expected,” chief executive Ian McIntosh said.
“Our results clearly demonstrate our capacity to rise to the challenge of managing differing trends among business platforms and the fallout of global trade tensions."
LDC posted record soybean export volumes from Brazil as the country increased flows to China during its trade row with Washington DC, the company said.
LDC, which has around 200 ships on charter at any one time, said its freight platform posted “solid results” in a market that saw the highest volatility since 2014.
“In a context of trade tensions and regulatory uncertainties, the platform relied on robust cargo demand from a range of industrial charterers and further diversified its sources of revenue,” it said.
“Global seaborne flows surged again in 2018, with a 45% increase in hire rates before a slowdown later in the year.
“Forward freight contract values experienced a particularly abrupt correction during the fourth quarter.
In the face of new regulatory requirements, LDC said it has begun feasibility studies on alternative propulsion technologies, notably using biofuel or wind.
It added that it continued to improve its predictive analytical capabilities through data science, to “optimise its voyage operations”.
LDC is the "D" of the so-called "ABCD" quartet of global agricultural merchants, alongside Archer Daniels Midland, Bunge and Cargill.
