Singapore-based commodities company Trafigura Group Pte Ltd. on Thursday (11 June) posted a profit for the first half of its 2020 financial year from 1 October 2019 to 31 March 2020 (H1 2020).
It reported a 27% increase in net profit of USD 426 million in H1 2020 when compared to USD 542 million in H1 2019.
Group revenue at USD 82.96 billion in H1 2020 was slightly down from USD 86.30 billion H1 2019 due to lower average commodity prices.
The Oil and Petroleum Products division delivered its strongest first-half profit performance, it said.
The Shipping and Chartering business also delivered a very strong performance having positioned itself strategically with an increased fleet and a sizable equity position to benefit from the expected IMO 2020 market disruption, which did materialize, noted the company.
Opportunities for geographical arbitrage were amplified by the uneven impact of the pandemic in regions, while the introduction of IMO 2020 regulation on marine fuel created additional volatility in the markets for fuel oil and condensates.
All these factors subsequently increased the need for our services and significantly boosted profit margins in oil trading as well as in our Shipping and Chartering operations, it explained.
The company also reported a strong start to operations of TFG Marine, the new joint venture with ship-owners Frontline Ltd. and Golden Ocean Group Ltd., which aims to build a significant share in a consolidating global bunker fuel market.
“At times like these, the physical trading and risk management activities of specialist companies such as Trafigura become more relevant than ever,” said Christophe Salmon, Trafigura’s Group CFO.
“Our core competence lies in understanding the global supply chain in great detail, in having highly skilled trading teams and in managing infrastructure such as oil storage facilities, pipelines and freight capacity.
During this period, our market intelligence on the impact of COVID-19 and of the decisions by OPEC and other oil producers on demand and supply, enabled us to act efficiently and effectively.”
Photo credit: Trafigura Group Pte Ltd
Published: 12 June, 2020
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.