Glencore may switch reporting

Kasmira Jefford
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GLENCORE, the newly-listed commodities group that released its maiden quarterly results two weeks ago, may switch to reporting half yearly, analysts have said.

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.