As investors we should ignore trading revenue IMO.Having a...

As investors we should ignore trading revenue IMO.

Having a trading business ensures WPL is on top of where the highest margin spot cargoes are, and the ability to optimise deliveries to customers in particular around travel time etc.

Let's not pretend though that WPL is uniquely positioned for taking advantage of buy low sell high in the spot market. From larger O&G players, traditional buyers to investment banks, there is competition and enough open information in traded cargoes that no company's buys / sells are secret. Expect trading opportunity to be volatile.

Trading margins are slim, but the full market picture from a trading business helps optimise own spot sales and possibly keep owned LNG tankers busy. Last thing we want is traders making profits off WPL spot sales.


If you buy a cargo for 100 million and sell it for 102 million, it's a 2 million profit in trading, but a 102 million increase in sales revenue. A spot cargo from WPL sold at 102 million on the otherhand would have 80+ million profit, (both profits are pre tax and serve as an example only at a significantly lower spot price than today...).