Tullet Prebon has just reported its operating metrics for the first half of 2015 with revenues gaining 15 percent to £415.7 million ($648.5 million), while profit jumped 20 percent to £60.6 million (94.5 million).
The company’s bottom line continued to be boosted by the recently acquired oil broker firm PVM Oil Associates. Alongside its half-year trading update, Tullet Prebon also reported today the acquisition of MOAB Oil, which will boost the company’s business in the U.S.
An expansion into the energy sector has been a timely bet for Tullet Prebon as volatility has been rampant, triggering a bout of trading activity and increased revenues in the sector. Tullet Prebon’s operating profit before tax was reported to be higher by 22.4 percent at £52.9 million ($82.5 million).
PVM Oil’s performance for the first six months of 2015 has surpassed its last year results by 35 percent. The company did not disclose the figure in its regulatory filing. This performance has been consistent with a trading update issued by Tullet Prebon in May.
On an additional note of strength, the Information Sales and Risk Management Services businesses have been strong, with revenues growing 17 percent to £27.2 million ($42.4 million).
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Stripping the outstanding performance of PVM Oil, the company’s broking revenue has contracted by 3 percent when compared to the same period last year to £336.5 million ($525.3 million). The continuing effort of Tullet Prebon into the U.S. energy sector with the acquisition of MOAB Oil with over 30 brokers based in Connecticut.
Profit margins following the cost optimization plan enacted in the aftermath of the expansion of the company’s business last year have increased slightly by 0.6 percent to 14.6 percent.
Commenting on the performance of the company in the first six months of 2015, the CEO of Tullet Prebon, John Phizackerley said, “The level of activity in the wholesale OTC financial markets has been more stable during the first half than in recent periods although activity has continued to be relatively subdued.”
“There has been higher volatility in some financial markets in 2015 compared with a year ago, but despite the economic and political dramas that have been playing during the first half of the year, volatility and trading volumes in many product areas have continued to be sporadic,” he explained.
According to the firm’s CEO, Tullet Prebon will continue diversifying its offering with further expansion into the energy market and scaling up of its business in the Americas and Asia-Pacific.