Trafigura to pay shareholders $5.9bn on record profits

Commodities trading giant Trafigura will pay out $5.9bn in dividends, it was confirmed on Friday, after annual profits surged on the back of volatility in the energy sector.

The privately-owned group, which is headquartered in Singapore, said net profits in the year to 30 September were $7.4bn, up from $7bn a year previously. It is Trafigura’s highest-ever profit.

In the energy division, operating profits before depreciation and amortisation jumped 10% to $11.1bn.

They fell in the metals, minerals and bulk commodities unit, however, to $1.6bn from $1.9bn a year previously, because of a $578m charge related to an alleged nickel fraud.

Group revenues dropped 23% to $244.3bn, reflecting lower average commodity prices.

Trafigura said it had seen "exceptional earnings" in the first half, as it provided services to customers in "disrupted energy markets and captured opportunities in a volatile environment".

However, it acknowledged that market volatility had eased in the second half, with more normalised conditions expected to continue into the 2024 financial year.

Dividends totalling $5.9bn will be paid to the firm’s 1,200 shareholders, most of whom are executives and traders. Last year it handed out $1.7bn.

This year's payout averages at around $5m per shareholder, although some staff will receive considerably more.

Trafigura’s effective corporate tax rate fell from 12% in 2022 to 8%, which it attributed to historic tax losses and higher earnings in lower tax jurisdictions.

Most of Trafigura’s staff, including the chief executive, are based in Switzerland, but it has assets ranging from mines to ports in 150 countries.

Jeremy Weir, chief executive, said: "As we look ahead we will continue to diversify our business with investments planned in renewable hydrogen, carbon removals and critical minerals.

"We approach 2024 with confidence in our prospects over the medium and long term."