Commodity trading group Trafigura has reported a 9% slump in earnings as margins came under pressure in its oil segment.
The Singapore-based company reported earnings of $887m for the year to September versus $975m last year.
Trafigura´s latest results underscore the challenges for companies trading in oil over the past year.
Intense competition and subdued price volatility saw gross margins slump from 2.3% to just 1.6%.
Against higher commodity prices and trading volumes, the lower profits came despite a 39% jump in revenue to $136bn from $98.bn.
In contrast to the oil trading division, Trafigura´s metals trading segment was one of the bright spots amid higher volatility in the prices of metals such as zinc and copper.