Following a year in which the global economy began its recovery from the Covid-19 pandemic, 2022 commenced with commodities markets in tight supply and inflation rising throughout the world. With the invasion of Ukraine by Russia at the end of February, commodities prices spiked to new levels in response to unprecedented market uncertainty and a series of economic sanctions put in place by Western governments.

These events served to radically transform global trade patterns. Commodities traders, including Gunvor, played a key role in managing the resulting volatility, while addressing market dislocations throughout the world. During the course of the year, progressively restrictive sanctions on the Russian energy sector kept market participants on edge. Gunvor ended relevant trading in Russia in strict adherence to corresponding sanctions. The company’s focus on risk management, financial discipline, and market analysis—derived from recent years’ extreme price volatility—ensured the Group was well prepared for the tumultuous market conditions.

Gunvor generated a historic gross profit of US $4.881 billion for the year and correspondingly posted a historic record net profit of US $2.359 billion. The performance was broad-based across all geographies and all desks, including refining and shipping. The net result includes legal provisions and an impairment related to a minority, non-controlling investment in the Ust-Luga Oil Products Terminal in Russia. Trading volumes were 165 million MT, compared with 240 million MT the year prior, due primarily to reduced trading in natural gas; this is expected to rebound in the coming year.

Gunvor’s revenue was US $150 billion, compared with US $106 billion the year prior. The Group maintains its restrictive dividend policy and share buyback program, which allowed Gunvor to continue to build its equity position to US $5.286 billion, its highest-ever level, up from US $3.079 billion, the year prior. The company continues to implement its Energy Transition strategy, and remains on track to cut Scope 1 and 2 emissions 40% by 2025, while committing to Scope 3 emission reductions.

Gunvor’s shareholding at year-end stood at 85.7% held by Torbjörn Törnqvist, the sole ultimate beneficial owner, with the remaining 14.3% held by the Gunvor Employee Shareplan. There are no outside shareholders or economic interests.