Glencore Upbeat on H1 Earnings on Lift from Strong Oil Trading

Glencore expects to report “very strong” trading earnings for the first half of the year, the mining and commodity trading giant said July 31, as trading activity benefits from the huge price swings in the wake of the COVID-19 pandemic. Trading earnings were boosted by a “sizeable increase” in carried inventory transactions while oil trades saw a “significant reduction” in net payables position due to the oil price collapse, Glencore said.

“Our marketing business has also risen to the challenge, delivering robust counter-cyclical earnings,” CEO Ivan Glasenberg said in a statement. As a result, Glencore said it now expects its pre-tax earnings to come in at the top end of its $2.2 billion to $3.2 billion guidance range for the full year. In 2019, Glencore’s energy trading unit reported an adjusted pre-tax profit of $1.32 billion. Last year the group sold 973 million barrels of crude and 779 million barrels of oil products…


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