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Glencore Posts 6% Trading-Profit Gain as Oil Offsets Agriculture

22 Aug 2013
Glencore Xstrata Plc’s commodity trading operations had a 6% gain in first-half adjusted earnings before interest and taxes as higher profits from oil, coal and metals offset a slump in agricultural products.

Profit from commodity trading rose to $1.19 billion from Ebit of $1.12 billion a year earlier, Glencore said today in a statement. That contrasts with the 39 percent slump in the company’s overall adjusted net income to $2.04 billion.

Trading operations accounted for 37 percent of first-half Ebit at the Baar, Switzerland-based company, according to JPMorgan Cazenove analyst Dominic O’Kane. The world’s fourth-largest mining company was created in May, when Glencore International Plc completed the $29 billion all-share takeover of Xstrata Plc, adding coal, nickel, zinc and copper output to a global commodities trading network