Macquarie Group is almost certainly headed for a record profit for the 12 months ended March 31.Citi analyst Brendan Sproules has lifted his net profit forecast to $4.6 billion, about 5 per cent above market consensus, and 53 per cent higher than last year’s record $3 billion result.division, home to one of the biggest energy trading businesses in the world.
This started in the middle of calendar 2021, when gas storage levels fell at the same time that renewable power production was low, leading to aRussia’s invasion of Ukraine has since led to a fresh bout of volatility. But while the market has more than doubled estimates for full-year profits from the CGM division, Sproules says the market may still be underestimating how the volatility of recent weeks has further boosted trading.
Obviously, Macquarie couldn’t have planned the Ukraine war or 2021’s Texas storm, but the resultant CGM profit boost shows the group’sIts annuities businesses – Macquarie Asset Management and its banking and financial services units – grow regardless of external conditions. The CGM boom also underscores another area where Macquarie has yin and yan-like balance: the energy transition.