Trafigura, one of the largest commodity trading companies in the world, has reported profits of 4 billion dollars in the first half of the last fiscal year, ending in March: this is the third-best half-year result in its history, surpassed only by the period following the Russian invasion of Ukraine. This time, however, the boom in profits is linked to the rise in commodities prices related to the war in the Persian Gulf and the closure of the Strait of Hormuz.
WHAT TRAFIGURA DOES
Trafigura is a Swiss-Singaporean commodity trading company, meaning it trades raw materials: crude oil and condensates, gasoline, fuel oil, biodiesel, minerals, refined metals, coal, and iron.
It is the largest private trader (i.e., not publicly listed) of metals in the world and the second largest in oil. It owns stakes in extraction sites, production plants, transportation facilities, and storage terminals spread across one hundred and fifty different countries. In Italy, it had a stake in Saras, the refining company that owns the large Sarroch refinery, before the family of Massimo Moratti sold it to Vitol, another leading commodity trading company worldwide.
FOUNDATION, INTERNATIONAL PRESENCE, AND SHAREHOLDERS
Trafigura was founded in 1993 and initially focused on only three markets: Africa (for oil), Eastern Europe (for metals), and South America (for both). Since then, it has branched out worldwide, operating through a dense network of subsidiaries. Its headquarters are in Singapore, but it is present in nearly fifty countries.
Trafigura is not publicly listed and therefore is not required to disclose the identity of its shareholders: in the 2025 annual report, it states that it is owned by about 1400 senior employees.
RECORD DIVIDENDS
In the half-year ending last March, Trafigura distributed over 3 billion dollars in dividends: this is the highest half-year figure ever recorded, as well as exceeding that of the entire previous year. Dividends are used for buybacks, that is, repurchasing shares.
ASSETS IN THE BALANCE SHEET GROW BY 40 PERCENT
The total assets on Trafigura’s balance sheet increased by 40 percent, reaching 111 billion dollars, because the rise in commodity prices and the lengthening of routes for oil and gas transportation (caused by the closure of the Strait of Hormuz) increased the value of the cargoes held by the company. Equity grew by 8 percent, to 17.5 billion.
VERY LOW TAXES
Trafigura’s profitability is favored by the very low taxes it is required to pay, a condition that applies to practically all commodity traders. Trafigura operates in jurisdictions very favorable from a tax perspective: its senior executives are located in Switzerland, while the company is based in Singapore. This is a typical structure among companies in the sector, whose headquarters are often located in places like the Bahamas, Luxembourg, or the British Virgin Islands.
