June 13, 2018 / 7:08 AM / in 7 days

Trafigura reports higher oil volumes, 53 pct net profit drop

LONDON, June 13 (Reuters) - * Trading house Trafigura reports 29 percent rise in revenue to $86.9 billion in September 2017 to March 2018, traded oil volumes up 16 percent to 5.8 million barrels per day.

* Profit down 53 percent to $222 million due to change in oil market conditions, the one-off impact of the remeasurement of deferred tax assets as a result of the U.S. corporate tax reform.

* Gross profit falls 21 percent to $979 million. The gross profit margin was 1.13 percent versus 1.84 percent a year ago.

* Earnings before interest, tax, amortisation and depreciation (EBITDA) was $658 million, down 29 percent. The adjusted debt-to-equity ratio was 1.33 times, up from 1.24 times on Sept. 30, 2017.

* The fall in profitability was the result of a market shift from a contango structure to backwardation, which discourages storing oil.

* Says “undertook a substantial restructuring of trading books, reducing costs by shrinking inventories and radically adjusting our storage commitments”.

* Metals and minerals total volumes increased by 48 percent - driven mostly by minerals. Metals and minerals gross profit rose 16 percent to $680 million. Gross profit in oil more than halved to $299 million from $652 million.

* Says the restructuring of oil trading positions should have a positive impact on second-half 2018 financials. (Reporting by Dmitry Zhdannikov, editing by Louise Heavens)

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