Glencore profits soar on high oil, coal prices

Glencore profits soar on high oil, coal prices

The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar, Switzerland, July 18, 2017. — Reuters pic

Thursday, 04 Aug 2022 5:26 PM MYT

ZURICH, Aug 4 — Mining and commodities trading group Glencore posted today a ninefold increase in profit in a first half of the year, fuelled by soaring prices of oil, gas and coal.

The Switzerland-based firm reported a net profit of US$12.1 billion (RM53 billion) in the first six months of 2022 as commodity prices have surged since Russia invaded Ukraine in February.

The London-listed group said it would return US$4.5 billion to shareholders.

“Notwithstanding what has clearly been a very complex environment for our markets, our operations, and the world in general, we are pleased to report an exceptional financial performance for Glencore over the period,” chief executive Gary Nagle said in a statement.

Glencore’s trading business saw earnings double to US$3.7 billion while its industrial operations earned US$15 billion on the back of higher coal prices.

Looking at the second half of the year, Nagle warned that “tightening financial conditions and a deteriorating macroeconomic environment present some uncertainty for commodity markets”.

Decades-high inflation and central bank moves to tighten monetary policies have raised fears that economies could fall into recession. — AFP