Some of the leading investment banks who worked on Glencore’s float began their coverage on the commodities giant yesterday.
Analysts at Credit Suisse said: “The company hopes to move from quarterly to half yearly reporting, which we would view as a positive development reducing the focus on short term earnings moves.”
Glencore missed forecasts despite posting a dramatic 45 per cent jump in first-quarter earnings, after its key metals trading arm was hit by a drop in Japanese demand and lower volatility.
Last month City A.M. reported that Glencore was reviewing its relationship with Xstrata, in which it holds a 34 per cent stake, after its results prompted a three per cent drop in Xstrata’s share price.
Glencore’s quarterly results included a net income figure of $554m from associates – nearly all of which relates to its Xstrata stake.
That figure suggests an Xstrata first-quarter net income about $1.6bn, which analysts said was much lower than they had been assuming.
Xstrata has until recently given its biggest shareholder a more detailed breakdown of its ongoing financials than it releases to the markets, which only receive a quarterly production update.