Glencore PLC (LSE:GLEN) shares tumbled almost 3% in morning trade after it reported interim earnings had halved, wiping £1.4 billion off the value of the business.
While a sharp tumble in profitability was widely anticipated – the year-earlier comparisons benefited from a bumper contribution from the coal business in early part of 2022 – it seems the numbers undershot consensus.
The miner and commodities trader reported adjusted core earnings, or earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.39 billion in the six months ended 30 June 2023, down from $18.92 billion previously.
Faltering global economic growth has put the brakes on Glencore along with mining majors Rio Tinto PLC (LSE:RIO) and Anglo American PLC (LSE:AAL).
According to Reuters, the company remains in the market for acquisitions, including a possible partial or full takeover of Canada's Teck Resources.
At 8.44 am, the shares were down 12p at 444.7p.