April 23, 2013 / 10:11 AM / 6 years ago

Trafigura profit lifted by higher oil revenues

GENEVA (Reuters) - Trafigura TRAFGF.UL, the world’s third-biggest trader in raw materials, reported a 3.2 percent rise in first-quarter net profit thanks to higher oil revenue.

Trafigura, the third-largest oil trader after Swiss rivals Vitol and Glencore (GLEN.L), has previously not published its profit.

Trafigura, which trades approximately 2.1 million barrels per day of physical oil, reported a rise in its gross profit margin as a percentage of turnover to 2.4 percent from 2.0 percent in the same quarter last year.

Vitol has not published its profit for 2012, although its margin slipped to below 1 percent to a four year low, according to Reuters calculations.

The filing to the Singapore exchange follows Trafigura’s listing of a $500 million perpetual subordinated bond on the bourse earlier this month.

Trading houses have increasingly tapped bond markets to raise capital for investing in physical assets, such as oil refineries and aluminium smelters, to take more control of commodity supply chains.

First Reserve Corp. estimates that since 2002, 75 percent of the roughly $90 billion in capital raised by physical commodity traders has been via public debt offerings.

The Singapore filing showed that Trafigura’s net profit for the first quarter of the 2013 financial year ending September 30. 2013 was $216.1 million compared with $209.5 million the previous year.

Trafigura said its turnover increased by nearly 8 percent over the same period following a rise in oil volumes.

Reporting by Emma Farge; Editing by Alison Birrane and Louise Heavens

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