Glencore share price: Commodities giant delivers earnings rise

Company benefits from higher resource prices

Glencore share price: Commodities giant delivers earnings rise

Glencore (LON:GLEN) saw its earnings rise in the first half of the year, with the commodities giant having benefitted from stronger resource prices. The Switzerland-based group further lifted its full-year earnings guidance for its marketing arm.

Glencore’s share price, however, has fallen into the red this morning having lost 2.22 percent to 333.60p as of 08:24 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.64 percent lower at 7,450.07 points. The group’s shares have added more than 71 percent of their value over the past year, and are up by a fifth in the year-to-date.

Glencore announced in a statement this morning that its adjusted EBITDA had jumped 68 percent in the first half of the year to $6.7 billion, while the company’s earnings per share came in at $0.17, improving from a $0.03-loss a year ago.  The blue-chip miner noted that it had benefitted from the recovery in commodity prices through late 2016 and into 2017, which underpinned a 95-percent increase in Industrial Adjusted EBITDA to $5.3 billion.

“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,” Glencore’s chief executive Ivan Glasenberg commented in the statement.

Going forward, the commodities giant lifted the earnings guidance for its marketing arm by $100 million to between $2.4 billion and $2.7 billion. Glencore further noted that it had made progress in reducing its massive debt pile by $1.6 billion to $13.9 billion in the first half of the year.

“Glencore has the most attractive commodity mix within our wider coverage," Eugene King, a mining analyst at Goldman Sachs, told Bloomberg ahead of the results. 

As of 09:09 BST, Thursday, 10 August, Glencore Xstrata PLC share price is 335.60p.

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