Vitol Group reports Q1 profit of around $2B despite war losses

Global energy trading firm Vitol Group has informally told its banks that its first-quarter profit is around $2 billion, a move intended to ease concerns about losses from the conflict in the Middle East. The figure is for informal guidance and could change during the final accounting process. The conflict has disrupted global energy markets, causing oil prices to surge and creating shipping disruptions, with some of Vitol's cargo reportedly stuck in the Persian Gulf. The firm's derivatives team suffered significant losses early in the war after misjudging market direction, and some of those positions have since been liquidated or hedged. However, other business units are maintaining high profitability and strong liquidity. Price volatility remains extreme as the war continues, creating the potential for significant future gains or losses. Turmoil in commodity markets typically benefits trading firms. During the Russia-Ukraine conflict from 2022 to 2024, Vitol earned $37 billion over three years, making it the world's most profitable trading company. Vitol's daily crude oil processing volume is comparable to the combined total of Germany, France, Spain, Italy, and the UK.