Glencore PLC (LSE:GLEN) posted record interim profits and announced a $3bn buyback programme as the war in Ukraine left commodity prices surging.
The diversified natural resource company boosted turnover 43% year over year to US$134bn in the first half despite a drop in copper production.
Underlying earnings more than doubled to US$18.9bn in the first half and its basic earnings per share increased ninefold to US$0.92.
"Global macroeconomic and geopolitical events during the half created extraordinary energy market dislocation, volatility, risk, and supply disruption, resulting in record pricing for many coal and gas benchmarks," Chief Executive Officer, Gary Nagle, said.
The group unveiled the $3bn buyback programme, saying it may continue until the 2022 full year results are announced in February 2023.
The mining corporation, which faced US$1.5bn of penalties for bribery and corruption earlier this year, recently lowered its guidance for copper mining by 5% for the year.
Glencore estimates the price of copper will rise to 93¢/lb in 2022, up from 54¢/lb in the first half.
Nagle said: “Looking ahead, tightening financial conditions and a deteriorating macroeconomic environment present some uncertainty for commodity markets through the second half of the year.
“However, with few short-term solutions to rebalance global energy markets, coal and LNG prices look set to remain elevated during this period, particularly given the current challenge of securing sufficient and reliable energy supply for the Northern hemisphere winter ahead.
"For metals, the outlook is more complex, balancing supply risks, amid labour, water and energy shortages, supply chain disruptions, growing sovereign risk uncertainty and rising costs, against likely weakening end-use markets ex-China.”