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Commodity broker Marex confident on full year after strong first half
Global Banking & Finance Review®
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LONDON (Reuters) – Commodities broker Marex posted record profit in the first half amid turbulent markets and rising interest rates and said on Thursday it was confident on the outlook for the full year.
LONDON (Reuters) – Commodities broker Marex posted record profit in the first half amid turbulent markets and rising interest rates and said on Thursday it was confident on the outlook for the full year.
London-based Marex, one of the world’s largest privately-owned commodities brokers, said in a statement adjusted pretax operating profit for the six months through June surged 70% to $59 million, on net revenue up 29% to $334.1 million.
“I am proud of how our business has successfully navigated the recent market volatility, which at times has been extremely challenging,” said Chief Executive Ian Lowitt.
Marex agreed earlier this month to buy rival ED&F Man Capital Markets to boost its metals business and expand in fixed income and equities.
Marex, which withdrew a planned initial public offering last year, said in April it was still keen to list on the stock market and was awaiting calmer conditions before a possible relaunch.
Commodities markets have fluctuated wildly this year as Russia’s invasion of Ukraine sent many prices surging on fears of shortages, but in recent months they have fallen back on worries that a global recession would curb demand.
A campaign by central banks across the world to stamp out inflation by boosting interest rates has added to Marex’s profits, since the broker holds billions of dollars in client cash that generates interest income.
Marex is majority owned by private equity firm JRJ Group and its partners Trilantic Europe and BXR Group, which bought stakes in the broker in 2010.
(Reporting by Eric Onstad; Editing by David Holmes)
A commodities broker is a professional who facilitates the buying and selling of commodity contracts on behalf of clients, providing access to various markets and helping manage trading strategies.
Fixed income refers to investment securities that pay investors fixed interest or dividend payments until maturity, providing a predictable income stream, typically associated with bonds.
An initial public offering (IPO) is the process through which a private company offers its shares to the public for the first time, allowing it to raise capital from public investors.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount, influencing economic activity and investment decisions.
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns, indicating the level of risk and uncertainty in the market.
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