Glencore Profit Jumps 86% on Coal and Copper Price Surge
Commodity trader Glencore saw its profits soar in the first half of the year due to higher coal and copper prices. The company's trading division performed exceptionally well, thanks to disruptions in Middle Eastern energy markets following the war with Iran.
The conflict led to a shortage of petroleum products, which drove refining margins to record levels. Buyers turned to alternative oil supplies from the U.S., creating opportunities for commodity traders like Glencore. The company's coal business also benefited from favorable conditions.
Glencore's core earnings reached $10.1 billion, up 86% from the same period last year. The company announced a $1.5 billion return to shareholders, with an additional $500 million allocated for a share buyback. Glencore plans to list its shares in Australia, following the abandonment of a potential merger with Rio Tinto Group.