Saturday, June 10, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

Vitol profits soar to record $15bn on back of energy crisis

2 months ago
in Market
Vitol profits soar to record $15bn on back of energy crisis
Share on FacebookShare on Twitter


Vitol, the world’s largest independent commodity trader, has emerged as one of the biggest winners of the energy crisis, reporting record profits far in excess of its rivals.

The privately owned group, whose top executives are largely based in London, made almost $15bn of net profit in 2022, according to people familiar with the matter.

The bumper profits matched the trading house’s combined earnings for the prior six years and were larger than some of the world’s biggest oil producers, including Italy’s Eni, illustrating how traders have benefited from the extreme volatility in energy markets triggered by Russia’s invasion of Ukraine.

The blockbuster year will mean a bumper payout for Vitol’s shareholders — approximately 450 senior partners spread across the trading hubs in London, Geneva, Singapore and Houston.

Vitol’s rival commodity houses, including Trafigura, Glencore and Mercuria, have also reported record results as the industry profited from the wild price surges and dislocations unleashed by the war. But the scale of Vitol’s returns has far surpassed its competitors.

The jump in Vitol’s profits was bolstered by windfalls in power markets, power generation, refining and the trading of liquefied natural gas. The company’s turnover nearly doubled last year to $505bn, it said last week.

In the UK, Vitol owns and operates five power plants through its partially owned subsidiary VPI, making it a bigger power generator than Centrica. VPI also has three further power facilities under construction in the region — two in the UK and one in Ireland.

The profits made by energy companies have attracted the ire of politicians in several countries, including the UK, which increased its energy profit levy this year. While commodity trading houses have escaped similar treatment, many analysts believe they could be next in line.

The leader of the Liberal Democrats, Ed Davey, responded to the news of Vitol’s profits by calling for the UK’s windfall tax to be extended to energy traders.

“It is simply not right for companies to make enormous profits out of the misery caused by Putin’s invasion of Ukraine,” he told the FT.

Vitol is a Dutch-registered company, with large offices in Geneva, London, Houston and Singapore.

The group is the world’s largest independent oil trader, though it traded slightly less crude last year than in 2021 after curbing the volumes of Russian oil it handled. Vitol stopped trading Russian crude in June.

It is also one of the largest petrol station owners in Africa, where it controls 3,900 petrol stations across 27 countries through its subsidiary Vivo Energy.

Chief executive Russell Hardy told the FT Commodities Global Summit last week that a lot of the profits were being re-invested in capex projects to strengthen energy supply, such as upgrading the efficiency of its power stations.

The year ahead is going to be “very different” to last year, in terms of profitability and margins, Hardy said, adding that “it’s a much more conservative market going forward, so our strategy and approach has to reflect that”.

Chief financial officer Jeff Dellapina told the summit that 2022 was a “cyclical high” in terms of profit.

“Last year, performance was strong,” he said. “Most things were working well in terms of our integrated investments across refining, production, power generation, so this was quite a positive year.”

In the past, Vitol has usually returned the majority of its profits to its shareholders through buybacks over time, though there is no formula for how to do so.

Vitol’s LNG trading operations also experienced a big increase in revenue, as the company shipped LNG to Europe to help replace lost Russian gas. The value of LNG cargoes soared last year, and Vitol’s total LNG shipments rose slightly to 17.6mn tonnes of oil equivalent.

Vitol declined to comment.

 



www.ft.com

Latest Oil News

Apache announces end to North Sea drilling hours after UK scales back windfall tax

Apache announces end to North Sea drilling hours after UK scales back windfall tax

June 10, 2023
UK set to introduce floor for oil and gas windfall tax

UK set to introduce floor for oil and gas windfall tax

June 9, 2023
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Tags: 15bncrisisEnergyprofitsrecordSoarVitol
Previous Post

US natural gas prices: déjà vu all over again

Next Post

Chickens are ‘coming home to roost’ in the shale patch

Related Posts

Apache announces end to North Sea drilling hours after UK scales back windfall tax

Apache announces end to North Sea drilling hours after UK scales back windfall tax

by Oil Market News
June 10, 2023
0

The UK government’s efforts to boost investment in the North Sea by scaling back the windfall tax on oil and...

UK set to introduce floor for oil and gas windfall tax

UK set to introduce floor for oil and gas windfall tax

by Oil Market News
June 9, 2023
0

Britain’s windfall tax on oil and gas producers is set to be scaled back as part of efforts to boost...

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

by Oil Market News
June 8, 2023
0

Irving Oil, the owner of Canada’s largest petroleum refinery, has launched a strategic review of the private company that could...

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

by Oil Market News
June 7, 2023
0

The UK’s advertising watchdog has banned a group of big oil and gas company advertisements for being misleading as part...

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

by Oil Market News
June 6, 2023
0

Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has claimed to be inspired by former Federal Reserve chair Alan Greenspan,...

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

by Oil Market News
June 5, 2023
0

Saudi Arabia will cut oil production by 1mn barrels a day in a bid to prop up oil prices, it...

Next Post
Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

The single event for investors to meet senior management from 85+ Oil and Gas

The single event for investors to meet senior management from 85+ Oil and Gas

12 months ago
Questions loom ahead of Wheeler’s Hill appearance

Questions loom ahead of Wheeler’s Hill appearance

1 year ago
The World Today | Oil Markets and Geopolitics of Energy

The World Today | Oil Markets and Geopolitics of Energy

7 months ago
Chesapeake exits bankruptcy as CEO Lawler sees ‘new era’ for shale

Chesapeake exits bankruptcy as CEO Lawler sees ‘new era’ for shale

1 year ago
Viking Line : Climate-smart Viking Glory is also a flagship for sustainability

Sector Update: Energy Stocks, Crude Oil Fade Slightly This Afternoon

5 months ago
ADVERTISEMENT
Apache announces end to North Sea drilling hours after UK scales back windfall tax

Apache announces end to North Sea drilling hours after UK scales back windfall tax

June 10, 2023

UK set to introduce floor for oil and gas windfall tax

June 9, 2023

Canadian refiner Irving Oil explores options including sale

June 8, 2023

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Apache announces end to North Sea drilling hours after UK scales back windfall tax

Apache announces end to North Sea drilling hours after UK scales back windfall tax

June 10, 2023
UK set to introduce floor for oil and gas windfall tax

UK set to introduce floor for oil and gas windfall tax

June 9, 2023
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.