Net income of $780m (£498m), a sharp contrast to the $2bn it made in the same period last year
Why it's interesting
Crumbling global commodity prices have consistently pushed miners such as Glencore to the bottom of
In recent weeks, tumbling global commodity prices, have consistently pushed miners such as Glencore to the bottom of the FTSE 100.
Commodities are Glencore’s main profit drivers, have damaged the miner’s performance in addition to other factors such as maintenance stoppages at its Chile operations. A supply glut and waning demand has hammered global oil prices, while copper prices had suffered amid concerns over China's economy.
Chinese market troubles are also being blamed for its weak performance.
Last week, its revelation of asset sales and further spending cuts knocked back shares in the company by 15 per cent. The company has also revealed plans to slash its capital expenditure.
Read more: Glencore posts disappointing output figures
Glencore is expected to write down the value of its Chad-focused oil producer Caracal by $790m, it said.
The Chad expedition was a “risky” venture considering the country’s “unattractive” investment conditions and issues over labour and power, said independent economist John Robertson. The Swiss-based miner’s plunge in profits is “no surprise” considering the commodities markets have been “seriously bad news” for investors who may look to divert their cash to money markets such as interest rates and bonds, Robertson said.