Glencore has posted record interim profit, more than doubling its earnings in the first six months of the year, as disruption to commodity markets driven by the Ukraine war led to soaring prices for its raw materials, particularly coal.
Adjusted earnings at the miner and commodity trader rose 119 per cent year on year from $8.7bn to $18.9bn, beating its previous half-year profit record and exceeding the $18.4bn expected by analysts.
The earnings were driven by Glencore’s coal division, which generated earnings of $8.9bn, more than total group profit in the first six months of last year.
Glencore’s trading business, which sets the company apart from its pure mining peers, also outperformed, generating earnings of $3.7bn, exceeding the $2.2bn-$3.2bn it had previously expected to make across the entire year.
In response, the FTSE 100 company boosted returns to shareholders, announcing a special dividend of $0.11 a share and a new $3bn share buyback programme, lifting total shareholder returns for the year to $8.5bn.