Key facts
- Glencore posted a net income of $4.405 billion for the first half of the year.
- This represents a $5 billion increase from a loss of $655 million in the same period last year.
- Adjusted core earnings (EBITDA) jumped 86% to $10.1 billion.
- Revenues surged 49% to $174 billion.
- Marketing adjusted EBIT more than doubled to $3.3 billion, driven by disrupted energy and freight markets.
Commodity trading giant Glencore reported a substantial turnaround in its financial performance, posting a $4.405 billion net income for the first half of the year, a significant improvement from a $655 million loss in the same period of the previous year. This surge was attributed to strong revenues and trading profits, bolstered by rallies in oil and copper prices and heightened market volatility.
Adjusted core earnings, or EBITDA, saw an 86% increase to $10.1 billion, while revenues climbed 49% to $174 billion. Glencore's marketing adjusted earnings before interest and tax (EBIT) more than doubled to $3.3 billion, marking a 142% year-on-year jump. The company cited materially disrupted energy, freight, and other markets as the primary drivers for this near-record first-half result.
Glencore had previously indicated expectations for a profit of around $3.3 billion in its marketing division due to extreme market volatility. The company's trading profit is on track for its best year ever if energy markets continue to experience significant fluctuations. Glencore's highest full-year marketing EBIT was recorded in 2022, when the invasion of Ukraine caused major energy market dislocations and sent oil prices soaring. In 2022, the marketing division's adjusted EBIT hit a record $6.4 billion.
Looking ahead, Glencore anticipates that market volatility will remain above historical norms for parts of the second half of the year, though at lower levels than the first half. CEO Gary Nagle highlighted the value of the Group's marketing, logistics, and risk management capabilities in navigating these conditions and efficiently delivering essential products to customers.