Trafigura Profit Rises as Increased Oil Volumes Boost Revenue

Trafigura Beheer BV, a commodities trader that listed a $500 million bond earlier this month and is disclosing financial statements for the first time, said first-quarter profit rose 3.2 percent as oil revenue increased.

The closely held company, which listed its first perpetual subordinated bond on the Singapore stock exchange at a fixed rate of 7.625 percent this month, reported that profit in the first three months of the financial year ending Sept. 30, 2013 rose to $216.1 million from $209.5 million in the same period the previous year. Revenue climbed 7.9 percent to $31.2 billion.

“Oil and bulk both made significant contributions to the group’s results, with oil delivering higher volumes than in the previous quarter,” according to a company filing on the Singapore exchange website.

Trafigura, which plans to to use proceeds from the bond offer to boost infrastructure investments, will also seek to increase funds under management at its Galena Asset Management unit to $3 billion by the end of 2013 from $2.5 billion as of January, according to the filing. The trading of physical commodities such as crude and oil products forms Trafigura’s main business, while Galena operates independently and deals in derivatives and equities, according to the company’s website.

Galena, which is investment manager to 10 funds, including Galena Metals Fund and Galena Private Equity Resources Fund, will grow its funds through returns and “limited additional investment,” according to the filing by Trafigura.

Bond Tool

“The bond for us is a tool that is very useful,” Chief Financial Officer Pierre Lorinet said in an interview at the Financial Times Global Commodities Summit in Lausanne, Switzerland, on April 16. “We do see a lot of opportunities for organic growth and investments,” he said, without giving details of specific projects.

Trafigura owns oil terminals, mines and metal warehouses. Its Puma Energy unit bought 230 fuel stations in Australia this year to become the country’s largest independent retailer.

Full year profit fell to $991.9 million in the 12 months ended Sept. 30 from $1.12 billion a year earlier. Net sales dropped 1 percent to $120.42 billion. The company’s sales from oil and petroleum products trading, which made up about 70 percent of total revenue, slid 4.1 percent to $84 billion in the year ended Sept. 30, the filing showed.

Petroleum and oil trading sales from Latin America declined 34 percent in the year, while Africa recorded an 8.3 percent decrease, according to the filing. The company has trading offices in Singapore and Geneva and employs 8,445 people in 56 countries.

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