Singapore - 8 December 2021
Trafigura Group Pte. Ltd. ("Trafigura" or "the Group"), one of the world's leading independent commodity trading companies, today released its results for financial year ending 30 September 2021.
Profit, turnover and volumes handled were the highest in the Group's history, consolidating the strong performance in FY2020 and demonstrating a structural rebasing of the quality and consistency of the company's financial performance and service to suppliers and customers.
Revenues increased by 57 percent to USD231,308 million, reflecting higher commodity prices and increased trading volumes as the Group continued to grow its customer base and expand into new markets.
Underlying EBITDA rose 13 percent to USD6,867 million from USD6,072 million in 2020. Net profit of USD3,075 million was nearly double the prior year's result, despite including a one-off, non‑cash accounting adjustment which reduced net profit by USD716 million due to IFRS rules on the treatment of a foreign currency translation reserve following the consolidation of Puma Energy into the Trafigura Group.
Trafigura traded an average of seven million barrels of oil and petroleum products per day over the year, a significant 25 percent increase over the prior year. Non-ferrous metals traded volumes grew by nine percent to 22.8 million metric tonnes and bulk minerals by eight percent to a total of 82.7 million metric tonnes.
Thanks to the strong profitability of the year and a measured dividend pay-out policy, Group equity rose by 36 percent to USD10,560 million, the first time that the Group's equity value surpassed USD10 billion. This shows once again the strength and resilience of Trafigura's financing model in enabling business growth, supported by transparent financial communication and active environmental, social and governance (ESG) programme.
Jeremy Weir, Trafigura's Executive Chairman and Chief Executive Officer said: "Trafigura's performance in 2021 again set new records in terms of volumes handled and overall profitability. We also made excellent progress over the course of the year in further diversifying our business to play a meaningful role in the ongoing energy transition.
"It was a year that saw the global economy recovering from the shock of COVID-19, albeit unevenly in different regions, and one in which underlying fragilities in global supply chains were laid bare, as demand rebounded whilst logistics and supply struggled to keep pace. This environment once again demanded exceptional levels of customer service, risk and supply chain management from our teams, to provide security of supply to our customers despite ongoing disruptions and supply-demand imbalances."
Image by Trafigura Group Pte. Ltd.
Additional key points:
• A strong start for the new Power and Renewables division, which generated underlying EBITDA of USD80 million during the year.
• Signing of agreement for the successful sale of Trafigura's stake in the MATSA polymetallic mining operation in Spain, subject to receipt of regulatory approvals.
• Recapitalisation of Puma Energy and its consolidation into the Trafigura Group. Together with the appointment of new management, this has put Puma Energy on a firmer financial footing from which to build its business in key markets.
• New investments in resources that will be needed during the energy transition, including an interest in Vostok Oil, a low-cost, low carbon intensity oil and gas resource in Russia, and in nickel and cobalt producer, Prony Resources, in New Caledonia.
• Continued to strengthen approach to environmental, social and governance (ESG) across operations and value chains, including establishing a dedicated ESG Committee of the Board, chaired by the Executive Chairman and CEO. The ESG Committee provides direction for the Group's ESG policy, strategy and performance and ensures a consistent approach to risk management.
• Good progress towards achieving previously announced greenhouse gas emissions reduction target to reduce total Scope 1 and 2 emissions by 30 percent by 2023, compared to 2020. Together with targets to align the Group's leading Responsible Sourcing programme with ISO20400 and invest in a portfolio of renewable power generation assets, these commitments enabled Trafigura to secure sustainability-linked financing in 2021, including for its USD5.5 billion European revolving credit facility.
• New target announced to reduce the intensity of total shipping emissions by 25 percent by 2030, compared to IMO 2019 adjusted baseline. The target encompasses over 70 percent of Trafigura's reported Scope 3 emissions in 2020 and will see the emissions intensity profile of the Group's owned and third-party leased shipping fleet decline by 48 percent compared to the 2008 IMO industry baseline. This compares favourably to the IMO industry target of a 40 percent emissions intensity reduction over the same timeframe.
• As a founding member of the First Movers Coalition, launched by the US State Department and World Economic Forum at COP26, Trafigura has committed to convert six ammonia carrier vessels (18 percent of the current owned fleet) to use zero emissions fuels as the primary fuel source by 2030.
• Continuing Trafigura's investments in hydrogen, a AU$5 million Front End Engineering Design study for the Port Pirie Green Hydrogen Project, jointly funded by Trafigura and the South Australian State Government and located at the Nyrstar metals plant, will commence this month, with a final investment decision to be made by the end of 2022.
"The Group's activities form a broad and solid platform not only for strong profitability today but also for responsible future growth aligned with the needs of a rapidly changing world. I would like to thank all of our customers and suppliers for their ongoing co-operation, our financial stakeholders for enabling our continued growth and our employees for their hard work and commitment. We expect 2022 to be at least as challenging as 2021, and I believe our company is well positioned to deliver vital commodities and exceptional customer services to an even larger customer base in the months ahead," concluded Jeremy Weir.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals and Minerals, and Power and Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including a majority share of global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. With over 1,000 shareholders, Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.
Trafigura Group Pte. Ltd. press release