Glencore’s profits from trading metals and oil and coal this year will be close to US$4 billion, the FTSE 100 group said today.
That’s ahead of its long-term guidance but lower than 2022, which was buoyed by the surge in oil and coal prices after the start of the Ukraine war.
Gary Nagle, chief executive added: “The particularly elevated commodity market imbalances and volatility levels that prevailed through much of 2022, have largely normalised, which, while clearly impacting profitability, has allowed for the release of some of the investment made in non-RMI marketing working capital in 2022.
“We continue to expect a full year 2023 Adjusted EBIT outcome above the top end of our $2.2-3.2 billion p.a. long-term guidance range, likely in the $3.5-4.0 billion range.”
Production of copper, zinc and nickel fell in the first half of 2023 it added, but a recovery is expected over the remainder of the year with guidance for copper unchanged at 1.04mln metric tons.
"Second-half volume weightings in copper, zinc and nickel reflect higher expected production volumes from Collahuasi, Kazzinc, Mount Isa and INO," added Nagle.
Glencore is trying to tie up a merger with Canadian group Teck but has been rebuffed so far.