EXCLUSIVE Vitol made record net profit in 2021 – sources

ARCHIVE PHOTOS. Logo of the marketer of materias primas Vitol Group in Ginebra, October 4, 2011. Photo tomada October 4, 2011. REUTERS / Denis Balibous / File Photo

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LONDON, March 29 (Reuters) – Global energy trader Vitol Group made a record net profit of just over $4 billion last year, sources familiar with the matter said, as oil prices , natural gas and other raw materials were soaring.

Vitol declined to comment.

The result beats its previous record net profit in 2020, when oil markets were upended by the COVID-19 pandemic. Bloomberg reported that Vitol earned $3.2 billion in 2020. The company does not disclose its net income.

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Last week, Vitol said it traded 7.6 million barrels per day (bpd) of crude and refined products in 2021, compared to 7.1 million bpd in 2020. It also said revenue jumped to 279 billion in 2021 as oil prices recover from 2020 lows. Its revenue was $140 billion in 2020. read more

For traders, 2021 was a tougher year to make money than 2020, when the market structure was in contango – with futures prices higher than spot prices – making oil storage profitable.

For most of 2021, the market has been in reverse – the reverse situation – but the price of oil has become more volatile and is up more than 50% from the start of the year.

The sharp rise in gasoline prices in the second half of 2021 also boosted traders’ results.

“When you see the spread from the Henry Hub to the TTF (Dutch wholesale gas), it’s a multiple of what it was before, which increases profitability,” said one of the sources familiar with the results.

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Reporting by Julia Payne and Dmitry Zhdannikov Editing by Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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