{"id":35026,"date":"2023-05-05T01:06:54","date_gmt":"2023-05-05T01:06:54","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/macquaries-commodities-unit-strength\/"},"modified":"2023-05-05T01:08:47","modified_gmt":"2023-05-05T01:08:47","slug":"macquarie-posts-record-profits","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/macquarie-posts-record-profits\/","title":{"rendered":"Macquarie posts record profits on higher income from commodities arm"},"content":{"rendered":"

By Praveen Menon and Roushni Nair<\/p>\n

(Reuters) -Australia’s Macquarie Group on Friday forecast higher short-term income from its lucrative commodities trading business as price volatility and increased hedging boosted the company’s annual profit to a record high. <\/p>\n

The Ukraine war and unpredictable weather in North America have turned Macquarie’s oil, gas and power trading unit into a strong profit-making segment, even if prices fall, due to elevated risk management levels and improved trading. <\/p>\n

The Sydney-based firm’s Commodities and Global Markets (CGM) segment posted net profit of about A$6 billion ($4 billion), 54% higher than last year, as more customers hedged against volatile energy markets. <\/p>\n

In the short term, the company expects consistent contributions from client and trading activity in the financial markets platform.<\/p>\n

Shares of Macquarie were down 1.36%, compared to a broader market decline of about 0.2%.<\/p>\n

“Record result, CGM THE standout but question marks on its sustainability,” UBS analyst John Storey said in a note.<\/p>\n

Earnings at Macquarie Capital, which runs capital raisings for other businesses, tumbled 47% as the unit logged lower fees due to bleak market activity. <\/p>\n

Macquarie said in a statement that the earnings were primarily driven by a strong performance from its CGM\u2019s businesses.<\/p>\n

Chief Executive Shemara Wikramanayake said the company remained “cautious”, adding that Macquarie’s diversified global operation across annuity-style and markets-facing businesses set the stage for “superior performance” in the medium term. <\/p>\n

The company’s broader international business generated 71% of the group’s profit.<\/p>\n

The financial conglomerate’s profit attributable for the year ended March 31 came in at A$5.18 billion, up from A$4.71 billion a year ago, and beating a Visible Alpha consensus estimate of A$4.96 bln. <\/p>\n

It also bumped up its final dividend to A$4.50 per share from A$3.50 per share a year earlier.<\/p>\n

Speaking at an investor briefing, Wikramanayake said the company was “very comfortably capitalised” with a group capital surplus of $A12.6 billion, up from $A10.7 billion in the previous financial year. <\/p>\n

($1 = 1.4932 Australian dollars)<\/p>\n

(Reporting by Roushni Nair and Rishav Chatterjee in Bengaluru; Editing by Arun Koyyur and Stephen Coates)<\/p>\n

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By Praveen Menon and Roushni Nair (Reuters) -Australia’s Macquarie Group on Friday forecast higher short-term income from its lucrative commodities trading business as price volatility and increased hedging boosted the company’s annual profit to a record high. The Ukraine war and unpredictable weather in North America have turned Macquarie’s oil, gas and power trading unit […]<\/p>\n","protected":false},"author":8,"featured_media":35027,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-35026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430YN-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=35026"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35026\/revisions"}],"predecessor-version":[{"id":35130,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35026\/revisions\/35130"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/35027"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=35026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=35026"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=35026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}