LONDON—A rebound in commodity prices and slashed costs weren’t enough to pull Glencore PLC’s earnings out of the red in the first half of the year.
The world’s third-largest diversified miner by market value reported a $369 million net loss in the six months to end-June compared with a $676 million net loss in the same period last year.
In Glencore’s first half-year report since it embarked on a sweeping plan to repair its balance sheet, the company said it is on track to continue reducing debt through a combination of asset sales, cost cuts and a bounce in commodity prices. “We have made considerable progress toward achieving our goals,” Glencore Chief Executive Ivan Glasenberg said on Wednesday.
Glencore launched the plan last year when investors were worried about the company’s then nearly $30 billion in net debt. The shares fell sharply, dropping almost 30% in one day. Glencore’s shares have since rebounded, more than doubling so far this year, driven by the rally in commodity prices and its progress in slashing debt. The stock fell 4.4% in morning trading in London.
The company is on track to reinstate its dividend, which it suspended last year as part of its debt-cutting plan, some time in 2017, Glencore’s CEO said. Mr. Glasenberg, once one of the mining industry’s most voracious deal-makers, said the company doesn’t have plans to acquire new assets soon.
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