Glencore Expects 2ndHalf Profit On Oil, Coal To Fall

Glencore expects second-half operating profit at its trading arm to fall sharply from the previous six months to $1.6 billion, it said on Friday, but it remains on track for a record 2022 performance on the back of high oil and coal prices, Clara Denina and Muhammed Husain reported for Reuters.

Photo Insert: Earnings before interest and tax (EBIT) in the first half reached $3.7 billion, with a long-term annual outlook range between $2.2 billion and $3.2 billion.

Earnings before interest and tax (EBIT) in the first half reached $3.7 billion, with a long-term annual outlook range between $2.2 billion and $3.2 billion.

"Glencore expects a significantly reduced, but still above average, H2 marketing result ... This will likely be taken as a slight disappointment by the market," said Tyler Broda at RBC Capital Markets. Glencore's share price fell 3.4% by 0749 GMT.

Jefferies analysts expect a large full-year capital return from Glencore between $5 billion and $10 billion, partly because thermal coal prices remain elevated by the world's scramble for energy supply even as the global economy slows.

Glencore both mines and trades the fossil fuel.

Supply chain issues in Kazakhstan as a result of the Ukraine war and extreme weather conditions that affected some mines in Australia led Glencore to cut its full-year production targets for coal, zinc, and nickel.

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