Throughout 2023, Gunvor’s focus on advanced analytics and trading systems, and an infusion of new talent and business lines, enabled the Group to effectively navigate normalizing market conditions to deliver the second strongest trading result in the Group’s history, with a net income of $1.252 billion.

Market conditions were broadly less favorable for commodities trading than the previous year. While sanctions-related market dislocations resulting from the war in Ukraine continued, commodities markets struggled with numerous new headwinds, including: a weaker than expected Chinese economy, monetary tightening, a stronger US dollar, and an oil supply cut by OPEC+. The very high price volatility across energy commodities in 2022 gradually decreased over 2023, and prices normalized, particularly in natural gas. By year end, they achieved a level consistent with long-term trends.  

Nevertheless, the investments Gunvor has made within the Group in recent years contributed to a strong performance. Gross profit for the year was US $3.248 billion, with after-tax net profit of US $1.252 billion. The result includes US $467 million in provisions taken related to the settlement of the Ecuador case, along with other non-recurring expenses.

Gunvor’s trading performance was broad based, once again across all desks and geographies, with meaningful contributions from the Group’s assets, including refining and shipping, as well as many of the new trading activities Gunvor is developing. The Group’s revenue fell to US $127 billion from US $150 billion the previous year, reflecting the decline in commodities prices; whereas total trading volumes increased to 177 million MT, up from 165 million MT, driven by the growth in new talent and business lines.

With its commitment to retain the majority of its profits in the company, the Group further continued to build its equity position. By year end, it reached a historic high of US $6.157 billion, representing a more than three-fold increase over the last five years. The Group’s strengthened equity allows for greater access to liquidity and the ability to move quickly on trading and investment opportunities as they arise.

Gunvor continued its sustainability journey by further defining targets addressing areas such as carbon footprint, reduction of CO2 emissions in all activities, waste and wastewater management, human rights and improvements to safety. Notably in 2023, Gunvor calculated for the first time the total Scope 3 emissions of the Group’s traded products from production to combustion, with the aim of defining clear carbon intensity for each flow and defining targeted approaches to reduce it. The data will be available in Gunvor’s 2023 Sustainability & Ethics report to be published mid-2024.

Gunvor’s shareholding at year-end stood at 84.21% held by Torbjörn Törnqvist, the majority beneficial owner, with the remaining 15.79% held by the Gunvor Employee Shareplan. There are no outside shareholders or economic interests.