Mining and commodities giant Glencore announced it would put $4.5 billion back into shareholders’ pockets today after reporting a record half-year profit of $18.9 billion due to higher metal prices and volatility of the market
Group adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose to $18.92 billion in the six months to June, compared with $8.7 billion a year earlier.
Part of the return to shareholders will be made up of a $3 billion buyback program as bosses tap into excess cash.
It comes as prices for much of Glencore’s metals, including thermal coal used in electricity production, have hit record highs due to wild swings in markets that have been exacerbated by the war in Ukraine.
Bosses said today that volatility is likely to continue in the period ahead.
“Global macroeconomic and geopolitical events during the middle created extraordinary energy market dislocation, volatility, risk and supply disruption, resulting in record prices for many coal and gas benchmarks and physical premiums, which supported a $10.3 billion increase in group adjusted EBITDA to $18.9 billion.” CEO Gary Nagle said today.
He added that with few short-term solutions to rebalancing global energy markets, coal and LNG prices look set to “remain elevated” for the period ahead.
By CityAM
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