Glencore shows profitability despite of difficulties

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Glencore shows profitability despite of difficulties

August 07, 2018 - 10:47
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Although this year brought multiple problems to Glencore Plc, so far it has not infuenced profitability of the world largest commodity trader, Bloomberg reports.

Photo © Gerd Altmann, CC0 1.0

Although this year brought multiple problems to Glencore Plc, so far it has not infuenced profitability of the world largest commodity trader, Bloomberg reports.

Besides other difficulties, the company faced corruption probe in the US, dispute in Congo and US sanctions against Russia. However, it is expected that Glencore will report about most profitable half of year ever on Wednesday.

Despite of the fact that some of the problems are already solved, shares of the company dropped by 20% this year, while rivals, including BHP Billiton Ltd. and Anglo American Plc, demonstrate rise in stocks. Difference in prices between Glencore's stocks and main rivals is explained by high level of risks that trader faced recently.

EBIDTA in the first half will be about $8,5 billion. Such earnings are result of high profitability of coal business, where Glencore is a leading shipper in the world, as well as increase in copper and cobalt production. Glencore prefers investing into new deals and projects instead of returning money to shareholders and buying back shares.