London 07/06/2016 - Revenue and gross profit at Trafigura's metals and mining trading division fell year-on-year in the first half of its fiscal year because of "significant challenges" in the market, it said.
Revenue for its metals and minerals segment fell 1.4 percent year-on-year to $16.7 billion for the October 2015-March 2016 period, according to its interim annual results released on Tuesday.
Gross profit for the division fell 23.9 percent year-on-year to $385.6 million during its fiscal first half.
"The market for metals and minerals continues to present significant challenges, not least the uncertainties over the precise path of growth in China," Trafigura CEO Jeremy Weir said in the report.
But there are positive signs in some markets - a long-anticipated supply deficit has arrived for zinc concentrates, aluminium stocks are being drawn down as capacity shutdowns take place and a deficit has emerged for nickel on rising demand and falling supply, Weir noted.
Trafigura's metals and mining trading division was able to maintain volumes overall and increased its market share in some segments in concentrates and refined metals, he added.
Trafigura's overall net profit fell 10.5 percent year-on-year but rose 39 percent on the previous half to $601.8 million. The stronger performance comapred with the previous half was due to strong trading activity for its oil and petroleum and metals and minerals divisions, the company said.
Overall group revenue fell 8.6 percent year-on-year to $44.1 billion during the fiscal half, with revenue from the metals and mining segment accounting for 38 percent of the figure. Oil and petroleum products made up 62 percent of its revenue.
(Editing by Mark Shaw)