Glencore sees shiny future from electric vehicles

Paterniano Del Favero
Agosto 10, 2017

Glencore plc (GLCNF.PK, GLNCY.PK, GLEN.L) reported that its income before income taxes for the first half of 2017 was $2.87 billion, compared to loss of $698 million in the prior-year period. It posted a net gain of $1.4 billion for all of 2016.

Chief executive Ivan Glasenberg, seen as a maverick in the mining world, acted boldly to get debt under control.

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 S&P GSCI Industrial Metals Index, a global benchmark, has risen around 25% from the first half of 2016 to the six months ending in June, with LME copper prices rising 22% and zinc prices surging almost 50%.

Mr. Glasenberg highlighted the rise of electric vehicles as a growing trend that is driving demand for several of the firm's most important commodities.

Adjusted EBITDA for the period rose 68 percent to $6.74 billion from $4.02 billion previous year.

The Marketing division is now expected to report annual adjusted Ebit of between USD2.40 billion to USD2.70 billion, after the range was lifted by USD100.0 million on Thursday. "As we look forward, the potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling underlying commodities, including copper, cobalt, zinc and nickel".

Net debt at the end of June was reduced to USD13.87 billion from USD15.52 billion only six months earlier, with funds from operations in the period soaring 88% to USD5.20 billion.

Altre relazioni OverNewsmagazine

Discuti questo articolo

SEGUI I NOSTRI GIORNALE