Higher commodity prices help boost Glencore earnings

 
Caitlin Morrison
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Higher commodity prices boosted Glencore (Source: Getty)

Glencore's earnings jumped in the first half of the year, due to higher commodity prices and cost cutting measures across the group.

The figures

Net income was $2.45bn (£1.89bn), compared with a loss of $369m last year. Earnings per share rose significantly to $0.17 per share, from a loss of $0.03.

The company reported capital expenditure of $1.68bn, compared with $1.57bn spent in the first half of 2016.

Net debt was reduced to $13.9bn from $15.5bn.

Shares in the mining firm were down 2.94 per cent to 331.15p in early trading.

What Glencore said

"Our extensive efforts to reposition our balance sheet and drive further industrial asset portfolio improvements over the last twenty-four months, are reflected in our strong first-half financial performance," said chief executive Ivan Glasenberg.

"Amid the best global economic growth momentum seen in recent years, our assets reported strong margins, generated by significantly better commodity prices and the favourable cost structures now embedded across the portfolio.

"As we look forward, the potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling underlying commodities, including copper, cobalt, zinc and nickel."

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