JF Lambert

From a business perspective, a $2.7 billion result is very solid given the current market environment. In a few months, the 2024 results from other trading houses will provide further context and validation. However, it is evident that the historic window of heightened volatility has now closed—for the time being. From a reputational perspective, this year has been far more challenging, with issues ranging from Mongolia to the trial in Switzerland. - The $1.1 billion impairment and loss is significant and painful. Accounting-wise, this amount has not fully impacted this year’s results, as accounting standards required portions of the loss to be reallocated to prior years. The Mongolian mess appears to have been managed effectively, with the issue addressed, and contained, ensuring no further losses beyond the $1.1 billion. Crucially, the $16.3 billion equity level has been preserved, albeit at the cost of a substantial dividend cut for shareholders. The priority remains clear: safeguarding Trafigura’s financial strength. - The trial in Switzerland, albeit painful, epitomises market behaviour of the past. It is unconceivable that such 15-years ago market practices could be replicated nowadays with the current zero-tolerance level. The implications would be massive for any trading house and their traders individually.

From a business perspective, a $2.7 billion result is very solid given the current market environment. In a few months, the 2024 results from other trading houses will provide further context and validation. However, it is evident that the historic window of heightened volatility has now closed—for the time being. From a reputational perspective, this year has been far more challenging, with issues ranging from Mongolia to the trial in Switzerland. - The $1.1 billion impairment and loss is significant and painful. Accounting-wise, this amount has not fully impacted this year’s results, as accounting standards required portions of the loss to be reallocated to prior years. The Mongolian mess appears to have been managed effectively, with the issue addressed, and contained, ensuring no further losses beyond the $1.1 billion. Crucially, the $16.3 billion equity level has been preserved, albeit at the cost of a substantial dividend cut for shareholders. The priority remains clear: safeguarding Trafigura’s financial strength. - The trial in Switzerland, albeit painful, epitomises market behaviour of the past. It is unconceivable that such 15-years ago market practices could be replicated nowadays with the current zero-tolerance level. The implications would be massive for any trading house and their traders individually.

This is first class investigation journalism!

Tough on the CFO. Let’s see how the principals will be sentenced then

So eventually German banks are getting the message from their government. Commodities are strategic and financing them is a must do. How long for other European banks to acknowledge this and get back to business?

Claude Dauphin in his wildest dreams would not have dared dreaming about such an achievement!

Very dell don me to the major trading house (s) which helped G7 devising a smart cap mechanism. This might actually work !

How times have changed! Industrial countries are eager to lock in supply come rain or come shine. Or sanctions or war… What an acknowledgement of the key role of commodity trading-houses! So criticised and yet so relevant in the world today.

Even proxy wars create pain. How much Europe is willing to endure will define the outcome for Russia. A great paper from The Economist.

Singapore doing the right thing, eventually. Or does it? This comes much too late and too little to reflect the magnitude of the accounting shenanigans. Merely a slap on the hand compared to investors’ losses. Not quite what to expect from a major financial centre.

Will ‘He’ turn off the gas spigot?

USD liquidity management for a European bank which has decided to focus its (now limited) commodity finance business in Europe. Timely when commodity prices are inflating lines utilisation. MUFG however confirms that large Japanese banks cannot disregard this strategic activity.

2/2 In half a year, revenues equal the whole 2019 Trafigura revenues. With over 3 times the profits generated during that year. Just in 6 months though! This allows Trafigura to easily absorb the Russian exit costs and keep investing in the energy transition. Not bad...

1/2 Commodity trading is definitely a big boy game... Trafigura is counting in $73bn worth of credit line to absorb the oil and gas price increases.

Maybe: “how come Glencore gets away with 1.5bn fine only?"