HOTTER ON METALS: Trafigura not about to 'do a Glencore'

Trafigura has released its first publicly-available financial results, but do not expect the company to follow Swiss peer Glencore down the IPO path.

For perhaps the best insight into the strategic route planned by the international trading, marketing and logistics firm, take a look at Puma Energy. Puma Energy, a vertically-integrated midstream and downstream oil company, has been part of the Trafigura fold since 2000. The firm focuses mainly on emerging markets, and as a result has seen turnover explode over the past decade to reach $8.7 billion last year. It was at this stage that Trafigura deconsolidated Puma Energy from its accounts, reducing its stake to 49% for $500 million. In other words, Puma Energy is backed by Trafigura as the largest shareholder but is able to raise capital from the capital markets in its own right. In theory, it’s a win-win for both Puma Energy and Trafigura, in that they can each continue to grow while maintaining a balanced financial strategy. More importantly, however, and at the core of Trafigura’s strategy...


Andrea Hotter

December 17, 2013

02:48 GMT

New York