Singapore-based oil and commodities trading powerhouse Trafigura Group has posted the smallest profit since the 2020 oil crisis as volatility in energy markets hit new lows. Trafigura’s net profit dropped to $1.47 billion in the six months through March, good for a 73% decline from a record $5.5 billion posted a year earlier. The company’s revenue fell 5.4% to $124.2 billion, while group equity increased to $17.3 billion.
“In the near term, supply chain disruptions continue to persist, including due to ongoing threats in the Red Sea and commodity markets remain vulnerable to sudden shocks and price spikes.” The latest set of results signal that a period of record profitability for the commodities trading industry fueled by Covid-19 and Russia’s war in Ukraine is coming to an end. The past three years have seen dramatic price swings that tend to favor top commodities traders.