Tullett Prebon cashes in on volatile oil price with revenue riseComments Off on Tullett Prebon cashes in on volatile oil price with revenue rise
The roller-coaster oil price helped broker Tullett Prebon pull in more cash during the run up to Christmas as job cuts also put it back on an even keel.
The interdealer broker, which does well when markets are volatile and more people trade, said busy times at its PVM Oil division helped drive a 14% rise in revenues during November and December to £125 million against last year. Stripping out PVM, Tullett revenues were up by 4% at constant exchange rates.
Tullett is cutting 7.5% of front-office jobs — around 70 roles — in fixed income and Treasury products under previously announced plans. The layoffs will cost the group, led by boss John “Phiz” Phizackerley, £35 million, but are expected to pay dividends in the future as costs shrink.
Oil prices have bounced around since a glut of the black stuff drove prices down to under $30 a barrel.Prices for Brent fell to a 12-year low of $27.10 last week but raced back to a three-week high yesterday of nearly $34 a barrel.
Full-year revenue for Tullett as a whole was 13% up on last year at £796 million from £704 million. Stripping out PVM, revenues dropped 2%.
Tullett unveiled plans last year to acquire the voice-broking business of rival Icap.