
Commodity trader Gunvor Group posted a 42% drop in profit in 2024, as the energy-market volatility that drove mega earnings in previous years declined.
Net profit fell to $729 million last year, while revenues grew due to higher volumes of physically traded crude and refined oil products, the trading house said in a statement on Tuesday. Though full-year earnings were the fourth best in Gunvor’s history, second-half profit was the lowest since 2020.
After banking billions of dollars in windfall profits as markets whipsawed following Russia’s full scale invasion of Ukraine, commodity trading giants are adapting to a new normal. Prices for gas and coal have declined from multi-year highs, while crude oil futures are trading in a tight range.
In an interview with Bloomberg last week, Gunvor’s co-founder and Chief Executive Officer Torbjörn Törnqvist acknowledged that the firm had lost money on some oil trades. The CEO has overhauled Gunvor’s top leadership team in recent months.
“Some areas have really performed well; some areas did not perform well. I’m open with that,” he said.
On Tuesday, the trading house said it was also impacted by impairments last year, including one for its oil refinery in Rotterdam.
Like its trading peers, Gunvor has been investing in assets to help stabilize long-term profits. That includes buying into a gas power station in Spain, a fuel distribution network in Pakistan and upstream natural gas production in the US.
Gunvor said its equity was $6.5 billion at the end of the year. Billionaire Törnqvist owns 84.79% of the company, with the remaining shares held by employees.
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