Glencore profit fell by 62% in the first half of the year – Kommersant

One of the world’s largest commodity suppliers, Glencore, ended the first half of 2023 with a net income of $4.57 billion, or $0.36 per share.

Glencore’s profit decline was expected. Like all commodity traders, the Swiss trader benefited last year from the surge in oil, gas and other energy prices triggered by the outbreak of hostilities in Ukraine. Last year, Glencore’s commodities trading profit hit a record $6.4 billion, up 73% from 2021. Company-wide net income reached $17.3 billion, three times higher than in 2021.

Formerly Glencore stated, which expects higher profits from its sales arm in 2023 than was projected in long-term forecasts. In the first half of the year, the division’s profit was $ 1.8 billion, which is 52% lower than last year. However, initially the company expected that the division’s profit would be $ 2.2-3.2 billion for the entire year. Considering the result of the first half of the year, it is obvious that this indicator will be surpassed. And now the profit of the trading division is projected in the region of $ 3.5-4 billion.

Kirill Sarkhanyants