Trafigura Group has posted a huge rise in six-month profits to a record $2.1bn, partly spurred by structural changes related to the energy transition.
The earnings reported by the trading giant, which is also a shipowner and charterer, compare to $500m a year ago for the first half of its fiscal year ending 31 March.
Revenue rose to $98.4bn, up 19% from the same period of its 2020 fiscal year, as a result of increased traded volumes and higher commodity prices.
The company said profit also reflected "stabilisation" of the group's industrial assets, which had weaker results last year.
Ebitda was also at a record high of $3.7bn — a 53% jump from the same period of fiscal 2020.
The company said: "Our TFG Marine bunker fuel joint venture with shipowners Frontline and Golden Ocean Group continued to build market share."
Trafigura added that it is also working to better define and reduce its Scope 3 shipping and supply chain emissions
Markets changing
"This outstanding first-half performance reflects our continuing efforts to build customer business, expand our product footprint and adapt to structural changes across many commodity markets, driven by the energy transition," executive chairman and chief executive Jeremy Weir said.
The six-month period saw the company buy a 10% stake in Russian oil and gas company Vostok Oil, as well as investments in green hydrogen, battery storage and nickel production projects.
The company said this indicates the "key role" that the energy transition, together with the technologies and materials needed to support it, are now playing in the commodity trading business.
Both principal trading divisions, oil and petroleum products, and metals and minerals, showed increased trading volumes, higher margins and larger profit.
Increased bank liquidity has also allowed Trafigura to handle larger trade flows.
Weir said the group did not expect to match the first-half results in the second six months of the fiscal year.
Further strong performance forecast
But he added: "We do expect very strong performance for the full year and look with increasing confidence to 2022."
On 7 June, Trafigura paired with fertiliser and gas carrier company Yara International to develop and promote the use of ammonia as a clean fuel for shipping.
The two outfits said they have signed a memorandum of understanding to work together on both green and blue ammonia fuel infrastructure and market opportunities.
In January, the trader made its second investment in hydrogen energy in as many months as it sought to consolidate its position in the green fuel.
Trafigura acquired stock in private US firm OneH2, which provides hydrogen fuel supply and logistics solutions.
In December last year, the group teamed up with a Swiss technology company to develop hydrogen fuel cells.
The initial investment in H2 Energy Holdings was $62m, to allow it to move forward with decarbonisation solutions for sea and land.
