Trafigura Beheer BV’s profit fell 33 percent in its fiscal first nine months on lower oil and metal-price swings and rising costs. The commodity trader cut a stake in Puma Energy, owner of oil storage and retail gas stations.
Net income declined to $606.8 million in the nine months to June 30 from $903.2 million in the same period a year earlier, Amsterdam-based Trafigura said in a prospectus for a 500 million euro ($677 million) bond offer. Net turnover rose 7.4 percent to $99.1 billion, the world’s second-largest metals trader said.
Trafigura and other commodities traders have been snapping up assets such as oil terminals, ports, mines and refineries to counter shrinking margins in the trading business. Glencore Xstrata Plc, the biggest listed commodities trader, was created in a $29 billion deal to acquire mining company Xstrata Plc.
Trafigura’s general and administrative costs rose to $1.23 billion from $975 million as depreciation and amortization costs linked to its growing stable of industrial assets increased.
The company reduced its stake in oil-services company Puma Energy to 49 percent from 65 percent by divesting part of its holding to minority shareholders, according to the prospectus.
Sonangol Holdings, Angola’s state oil company, paid $500 million to increase its stake in Puma to 30 percent from 20 percent as part of a capital raising for the services unit. The transaction values Puma, which owns operations in South America, Asia, Australia and Africa, at about $5 billion.
Trafigura’s interest in Puma was diluted by 12.5 percent by Sonangol’s $500 million capital increase. Trafigura also sold 1.9 percent to Cochan Holdings LLC, an Angola investment group, which maintained its 15 percent interest in Puma.
A new group of shareholders, made up of investors related to the company, purchased 6 percent of Puma from Trafigura.
“During the year Trafigura sold a 3-1/3 percent stake in Puma Energy to one of the members of the Board of Directors,” Trafigura said in the prospectus. A spokesman for the company wouldn’t identify the board member.