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)

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