UPDATE 2-Glencore raises trading guidance, sees electric vehicles boosting demand – by Barbara Lewis (Reuters U.S. – August 10, 2017)

https://www.reuters.com/

LONDON, Aug 10 (Reuters) – Mining group Glencore raised earnings guidance for its trading business, citing higher commodity prices, and said on Thursday increased take-up of electric vehicles and demand for energy storage would boost demand for its products.

Following the commodities downturn of 2015-16, big miners have repaired their balance sheets to help position themselves for growth. Glencore has cut debt and also has a mix of assets that could help it benefit from an upsurge in electric cars.

The company raised full-year guidance for adjusted earnings before interest and tax (EBIT) in its trading or marketing business by $100 million to a range of between $2.4 billion and $2.7 billion.

“With higher commodity prices, our marketing business does perform better, more arbitrage opportunities exist,” CEO Ivan Glasenberg said on a conference call, noting demand for commodities looked strong and new supplies limited.

First-half adjusted core earnings or EBITDA rose 68 percent, while EBIT rose 334 percent from a year before and net debt fell $1.6 billion from the end of 2016 to $13.9 billion. Its net debt to EBITDA ratio shrank to 1.07 at the end of June, down from 1.51 at the end of 2016. A ratio of around 1 is considered healthy in the capital-intensive mining industry.

For the rest of this article: https://www.reuters.com/article/glencore-results-idUSL5N1KM2XJ

Comments are closed.