Glencore Swung to 1st Half Loss on $3.2 Billion Impairments as Prices Fell
August 06 2020 - 2:50AM
Dow Jones News
By Jaime Llinares Taboada
Glencore PLC on Thursday posted a swing to a loss for the first
half of the year, as underlying performance worsened and it booked
significant impairments related to lower prices.
The FTSE 100 miner posted a net loss of $2.6 billion for the six
months ended June 30 compared with a $226 million profit a year
earlier. This was driven by impairments of $3.2 billion as a result
of lower commodity prices related to the uncertainty arising from
the coronavirus pandemic.
Adjusted earnings before interest, taxes, depreciation and
amortization fell to $4.83 billion from $5.58 billion. However,
this was above the market consensus of $4.29 billion--taken from
the company's website and based on 14 forecasts.
Chief Executive Ivan Glasenberg said the performance reflected
the countercyclical earnings power from Glencore's large-scale
marketing activities. "Marketing delivered a half-yearly record
adjusted EBI performance of $2.0 billion, allowing us to raise
full-year guidance to the top end of our long-term $2.2
[billion]-$3.2 billion range," he said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
August 06, 2020 02:35 ET (06:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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