Posted By Uma Rajagopal
Posted on August 18, 2022
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)
