Trafigura profits down $4.5bn in 2024 amid ‘serious misconduct’ investigation in Mongolia
Traded volumes of oil and petroleum products were up 8% on last year’s figures
The trading house said it has recorded a provision of $1.1bn after an external investigation confirmed ‘significant exposure’ for the group
TRADING giant Trafigura announced a sharp fall in profits for 2024 amid an investigation into misconduct by employees in its Mongolian petroleum products supply business.
The group recorded net profits of $2.8bn, down from the $7.3bn it posted last year.
Traded volumes of oil and petroleum products were up 8% on last year, largely because of increases in crude oil, LPG and gasoil. Trafigura traded an average of 6.8m barrels per day in 2024, it said.
Its bulk division recorded “one of its best years on record”, chief executive Jeremy Weir said.
Iron ore volumes remained “relatively robust”, the company said, despite the much-discussed struggles of China’s real estate market.
The increase in steelmaking in India and Southeast Asia continues to be “pivotal for bulk commodity markets”, Trafigura said in its annual report.
Trafigura handled 5,501 voyages in 2024, up nearly 200 on 2023’s figure. It had between 210-220 wet freight vessels chartered on average in 2024 and 61 dry.
But global head of shipping Andrea Olivi said: “A weaker demand environment and the start of a new wave of newbuilding tanker deliveries suggest there will be a correction in asset values.
“However, with many geopolitical uncertainties still in play and a fundamentally tight supply picture, the outlook for earnings could shift quickly as further disruptions cannot be ruled out.”
Trafigura also announced it had recorded a total loss of $1.1bn as a result of wrongdoing by individuals in its Mongolian oil business, $358m has been reflected in this year’s results.
“The misconduct included manipulation of data and documents, resulting in inflated sums being paid by Trafigura, and deliberate concealment of overdue receivables,” Trafigura said in a statement in October.
“It involved a complex chain of transactions with a small number of local counterparties.”
Chief executive Jeremy Weir said his company had “reviewed other higher-risk offices and lines of business, and we are confident that these issues are isolated to a self-contained operation in Mongolia”.
