Glencore share price: Risk officer Giles Jones to become head of US oil trading

By: Anton Aleksandrov
Anton Aleksandrov
Anton is a freshly graduated economist from the States with passion for the world of finance. He is one… read more.
on Apr 9, 2014
Updated: Oct 21, 2019

iNVEZZ.com Wednesday, April 9: Glencore Xstrata (LON:GLEN) has appointed its chief risk officer Giles Jones as the new head of US oil trading, according to industry sources quoted by Reuters yesterday. As of 14:50 BST, Glencore’s shares were trading 0.95p or 0.30 percent lower at 315.05p.

Jones will be replacing Andy Kelleher, a former president of ConocoPhilip’s trading business who joined Glencore in 2012 from JPMorgan and led the commodity giant’s push into the thriving US energy sector.
The new head of US oil trading joined the group in 1990. Prior to becoming chief risk officer Jones was responsible for running the oil derivatives marketing unit. His new appointment signals that the FTSE 100 company might be looking to further ramp up its US operations. Glencore’s attempts at expansion in North America have so far been overshadowed by rivals Trafigura and Vitol, who have invested heavily in their pipeline, terminal and storage businesses.

**Moody’s warns keeping Las Bambas could pressure credit rating**
Moody’s Investors Services has said that a decision by Glencore not to sell its Peruvian copper mine Las Bambas would likely improve the group’s long-term growth, but could pressure its credit rating.
The commodity giant has been holdings talks for months with China Minmetals Corporation, a state-owned Chinese copper company, over the sale of Las Bambas. The company agreed to sell the asset to secure approval from China’s competition authorities for its $46 billion (₤27.5 billion) acquisition of Xstrata. According to sources quoted by Reuters, the lack of a deal is the result of failure between the parties to agree on a price.

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“Glencore Xstrata’s keeping the Las Bambas asset could enhance the company’s long-term growth prospects but is likely to leave limited headroom within the current Baa2 rating,” Moody’s senior analyst Gianmarco Migliavacca wrote in a report. However, the rating agency expects Glencore to proceed with the divestment, using the funds from the sale to pay down debt, return cash to shareholders and shore up its cash reserves. “(This) would boost its already solid liquidity and improve its metrics at a time when they remain weakly positioned for the Baa2 rating,” Migliavacca argued.

**Analysts on Glencore**
Sanford C. Bernstein reaffirmed its ‘outperform’ rating on Glencore’s shares in an investor note sent today. It gave the stock a price target of 450.00p.
Four equity analysts rate Glencore as a ‘sell’, seven give it a ‘hold’ rating and 14 are calling it a ‘buy’. The shares have a consensus rating of ‘hold’ and an average price target of 358.47p.
**As of 15:20 BST buy Glencore shares at 314.36p.**
**As of 15:20 BST sell Glencore shares at 314.34p.**

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