The crash in the price of oil has not been kind to very many big businesses in the last year or so.
Major commodity firms like Glencore and Anglo American are struggling right now, and oil giant Shell just announced that it will cut 10,000 jobs in the coming year.
But it hasn’t been bad for everyone, and some are enjoying a fantastic time thanks to oil’s seemingly endless fall towards zero. The commodity has lost more than 75% of its value in just 18 months.
Traders and brokers are benefitting from the crazy volatility of oil and other commodities, which is allowing them to trade big volumes, and make lots of money as a result.
On Friday, Tullett Prebon, one of the City’s biggest interdealer brokers, dropped a business update, and its all pretty good news for the firm, thanks to oil.
In November and December, Tullett pulled in revenues of £125 million ($179.5 million), up a massive 14% from the same period in 2014, and it was pretty much all down to the performance of PVM Oil Associates.
Tullett bought the oil trader in November 2014, and that move looks like its paid serious dividends. Without PVM’s performance, revenues grew by just 4% from the same period in 2014.
For the full year in 2015, Tullett Prebon’s revenues topped £796 million, up by 13% from 2014, once again pushed up massively by PVM. If PVM is excluded from the results, revenues actually fell by 2% at constant exchange rates.
In the update, Tullett Prebon said: “PVM’s main activities are in crude oil and petroleum products, and the business has continued to benefit from the pick-up in the level of activity in the oil and related products markets reflecting the significant changes in the oil price experienced since the start of the second half of 2014.”
As well as surging revenues, Tullett’s profit margins have also grown hugely in the last year, up to 13.5%. This has been helped by an expected 7.5% cut in front office staff from the company in coming months.
In November, it was announced that Tullett was undertaking a big merger with rival brokerage ICAP to create a “global hybrid voice broking and information business” which will “create the largest player in the industry,” the company said.
Tullett’s shares, which are listed on the FTSE250, have jumped more than 8% as of 8:50 a.m. GMT (3:50 a.m. ET)
The company will release its preliminary full year results on March 1st.
NOW WATCH: How to know if you’re a psychopath
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.