Vitol Group has announced that its total traded volumes in 2010 rose 25% to around 394 million metric tonnes (mts) from 316 million mts in 2009, helped particularly by higher crude oil, electricity and natural gas volumes.
Revenues for 2010 totalled $195 billion, up 36% from $143 billion in 2009, bolstered by the increase in traded volumes and higher average oil prices of $79.50 a barrel versus $62 a barrel in 2009.
In addition to growth in Vitol’s core trading businesses, both the tank terminal business VTTI and the exploration and production business grew in 2010.
Significant recent developments from 2010 include the construction of a new oil products terminal in Cyprus, to act as a regional trading hub as well as to supply the domestic market.
This month an agreement was reached by Vitol, in partnership with Helios Investment Partners, to purchase Shell’s downstream businesses in 14 countries in Africa, which include Morocco, Kenya and Tunisia. Two new companies will be formed, one in the retail and commercial fuels market, with Vitol and Helios holding an 80% shareholding and Shell a 20% shareholding and a new Lubricants company, with Vitol and Helios holding a 50% shareholding and Shell a 50% shareholding. Both businesses will continue to operate under the Shell brand.
Vitol’s exploration and production businesses delivered strong production through its Arawak assets. On the exploration side, successful drilling took place in Cameroon where new oil and gas discoveries were made, supplementing the growing portfolio of undeveloped oil and gas in our core area around the Gulf of Guinea in West Africa
Ian Taylor, President and Chief Executive of the Vitol Group, commenting on 2010 performance, said:
“While trading conditions remained challenging through much of 2010, the Vitol Group delivered a solid performance. We saw a 25% increase in core trading volumes, with strong growth in our crude oil, natural gas and electricity businesses.”
He added: “We completed the sale of 50% of our storage and terminal business, VTTI, to MISC Berhad of Malaysia, giving us a solid foundation for future growth. Vitol Aviation and the recently announced acquisition of the downstream marketing businesses of Shell in 14 countries in Africa give us increased exposure to consumer markets as well as potential additional synergies with our core trading activity. We intend to invest and grow both these businesses.”
“Looking ahead, Vitol expects trading conditions to remain competitive in 2011. Despite some lingering uncertainty, the global economic outlook is strong and can be expected to underpin strong growth in energy demand, particularly in the fast growing economies of Asia, the Middle East and South America. In the oil market, growth in demand and reduced inventories mean that increased supply from OPEC producers will need to be brought to market, to limit further increases in energy prices and consequent potential damage to economic growth.”
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