Oil trader Vitol says 2020 revenue fell by 40%, reports suggest profits rose

London, (Quantum Commodity Intelligence) - Global energy trader Vitol posted 2020 revenues of $140 billion on Tuesday, down $85 billion in a year, as trading volumes dropped, but profits rose on increased market volatility after crude prices hit multi-decade lows.

The total traded volume for the year was 339.2 million mt, down from 382.8 million in 2019 - or 7.1 million barrels per day down from 8 million barrels - as Covid-19 lockdowns hit global demand for energy products, the company said in a statement.

The Geneva-based trader is a private company and does not release profitability figures, but media reports quoting industry sources say an all-time record net profit of around $3 billion was reached in 2020.

"Looking forward, whilst we expect a recovery in most sectors in the second half of this year, aviation demand is likely to remain below 2019 levels for some time," said Russell Hardy, chief executive officer.

"We see business opportunities in particular sectors, such as bunkering in growth markets, including Asia and the Middle East, and are expanding our offering to capture these," he added.

Volumes for crude oil and refined products were down across the board, apart from for naphtha, which actually saw volume rise 18% on the year on manufacturing demand, said the company.

Crude oil was down 14% at 174.6 million mt and gasoline and gasoil were 6.1% and 1.4% lower respectively, while jet volumes were hardest hit with a huge 39% year-on-year fall to 11.3 million mt.

The figures illustrate the widely varied fortunes of transport fuels as airline demand for fuel plummeted when international travel closed down, while road fuel consumption saw curtailed public transport usage and leisure travel offset by growth in home deliveries and journeys by personal vehicle.