Statement from Torbjörn Törnqvist, Chairman and CEO of Gunvor Group:

“Gunvor’s result during this period, driven by massive global market dislocations, was broad-based across all regions and activities, including crude oil, oil products, natural gas, and liquefied natural gas (LNG). Particularly encouraging is the return of substantial profitability in our refining operations and our shipping. This has resulted mainly from tight refining capacity worldwide and strong demand, specifically in Europe, for middle distillates, including diesel, heating oil, and jet fuel. As a leading global ship charterer, Gunvor benefitted from strong demand for spot charter capacity.

Overall, Gunvor continues to realize the benefits of the work we’ve done to overhaul our business in recent years, investing in new talent and trading systems, and expanding into new areas, such as in the United States and U.K.—locations which contributed significantly during the first half of the year. Our diversified business model, combined with a robust governance framework, has proven to be extremely successful over the past few years.

The vast majority of profits will be retained within the company to leverage further global growth and to position Gunvor as a relevant force in support of the Energy Transition and energy security. Investments in non-fossil fuels will continue as a part of this effort.”

Notes:

• Gunvor remains on track with its Energy Transition strategy and commitments, including its goal of cutting Scope 1 and 2 emissions 40% by 2025. The company will announce targets for the reduction of its scope 3 emissions later in the year. Recent investments include the areas of hydrogen, plastics waste recycling, and renewable natural gas, among others.
• As international economic sanctions have come into effect, Gunvor has ended trading with relevant Russian counterparties, while performing on remaining contracts which are not yet subject to sanctions but will expire in line with applicable wind-down provisions. None of Gunvor’s refineries process Russia-origin crude oil.
• Gunvor will continue to strictly adhere to all applicable sanctions regimes and remains in contact with relevant governments regarding its trading.
• Divestiture of the company’s non-controlling, minority stake in the Ust-Luga Oil Products Terminal has not been so far practical or legally feasible, and Gunvor continues to explore its options. Still closely monitoring the situation, the company conservatively adapted the valuation of the asset at the end of June. Gunvor continues to have no material exposure to Russia with respect to its activities.
• All H1 2021 and H1 2022 figures are based on unaudited financial information.
• * Revenue for 2021 has been restated from US $130 billion to US $106 billion as a result of a change of accounting standards.