Vitol 2024 volumes and review

• Turnover $331bn in 2024 (2023: $403bn)
• 537mTOE delivered in 2024 (2023: 545mTOE)
• 7.2mbpd of crude oil and products delivered in 2024 (2023: 7.3mbpd)
• c10,000 service stations
• 850kbpd refining capacity
• c8GW gross generation capacity

At Vitol, our focus remains the efficient and safe delivery of energy and commodities. We are deploying our expertise, networks and capital to help this happen. Regardless of current policy objectives, there are near and long-term realities that shape energy and commodity demand. As a business we respond to the needs of today, whilst being mindful of the needs of tomorrow.

Looking back on 2024, our core business of trading performed solidly, volumes of physical energy traded remained broadly flat at 537mTOE (2023: 545mTOE) though turnover declined to $331bn (2023: $403bn) as energy prices moderated and volatility declined in a generally balanced market.

In oil, we delivered 7.2mbpd of crude oil and products (2023: 7.3mbpd) with slight declines in crude, gasoline and gasoil being offset by a strong growth in naphtha and jet as the petrochemical and aviation sectors continued to expand. Longer term, we anticipate this trend will continue with diminished demand for road fuels being coupled with increasing demand from aviation and petrochemicals.

LNG volumes grew 10% to 19.4mTOE as demand increased and prices moderated from the peaks of 2022 and 2023. LPG volumes were also up, with our Asian business seeing the largest increase and we expect demand for LPG, particularly among developing economies, to continue to grow strongly.

Globally, our power volumes remained flat, with an increase in volumes in the Americas offset by declines in European power volumes. In Asia, we are building a presence in key regional markets.

In order to diversify our revenues further in the medium-term, we began building a metals trading business with key hires in iron ore, aluminium and copper. This has been consolidated by the acquisition of Noble Resources, an Asian-focused commodity trading business with an established presence in metals and coking coal, as well as a footprint in some of Asia’s fastest-growing demand centres.

In line with our long-held strategy of investing in quality complementary assets, during 2024 we acquired the Italian energy company Saras, which included the 300kbpd Sarroch refinery on the island of Sardinia, taking the refining capacity of our asset investments to 850kbpd. We also expanded our service station footprint to almost 10,000 through Vivo Energy’s acquisition of Petronas’s 74% share in Engen and Petrol Ofisi’s acquisition of BP’s retail business in Türkiye.

Although our view is that oil demand will peak in the early 2030s at circa 110mbpd, we anticipate the decline in demand to be limited through to 2040 by when it will fall back to today’s level of 105mbpd. In this context, strategically situated refining assets should complement the core trading business for some time.

Alongside our traditional assets, we continue to invest in circular energy solutions. In early 2022 we invested in Danish company WPU (Waste Plastic Upcycling) one of a number of companies looking to develop scalable pyrolysis plastics recycling to facilitate the indefinite recycling of plastics. In December 2024 we acquired the majority of the share capital of WPU.

In 2024 we also added to our investments in waste bio-methane with the acquisition of Biomethane Partners in the US, which captures methane from waste landfill, injecting it into the gas grid. We see additional opportunities for the blending of waste biofuels into the bunker market and are actively exploring a number of bunker solutions, from bio-LNG to biodiesel.

More broadly across our asset portfolio, we continue to invest in assets which we believe will perform in the near and longer term, complementing the trading business. We have consistently recognised both the critical role to be played by hydrocarbons in the near and medium-term, and the need to ensure our businesses are positioned to capitalise on new energy opportunities.

This is reflected across the asset base and across all our business segments, from upstream oil to power. We recently (since year end) agreed with Eni to invest in a number of producing assets offshore West Africa. This will add 40kboepd of production to our portfolio, which will take our total production to 110kboepd, including almost 1mMT of equity LNG.

Across our infrastructure investments, our storage company VTTI is also growing its position in LNG, alongside traditional fuels, as well as ensuring it is well placed to serve a growing biofuels market. Similarly, our refining businesses all combine a focus on optimising production today and planning and investing in the energy needs of the future.

In power, our global portfolio of renewable generation is complemented by investments in thermal generation in Europe and storage in both Europe and the US.

As we approach our 60^th year, our management team is evolving. Chris Bake*, Gerard Delsad and Mike Muller are retiring. Jay Ng and Kieran Gallagher, both long-standing colleagues, have been appointed to the executive committee. The collective expertise of the leadership team is critical to our future and our ability to adapt to our customers’ changing needs.

Energy demand will continue to increase alongside economic growth. Coupled with ongoing decarbonisation initiatives, this will also drive demand for metals and other commodities. Notwithstanding current geopolitical complexities, our sector can work with stakeholders to help address the underlying need for capital and resources.

*Chris Bake retired during 2024