Glencore ups expectations for FY trading, lowers nickel, coal
Glencore on Friday raised expectations for its trading
division following improved market conditions and a surge in commodity prices,
but lowered full-year guidance for nickel and coal, citing output disruptions.
The figures are a foretaste of first-half financial results
set for Aug. 5. Peers Anglo American and Rio Tinto have dished out higher
shareholder payouts in 2021 after the commodity rally.
London-listed Glencore said it expects its full-year
earnings before interest and taxes (EBIT) for its marketing - or trading -
division to be at the top end of its annual range between $2.2 billion and $3.2
billion.
For output, it left its full-year guidance for copper and
cobalt output broadly unchanged, but lowered its expectations for zinc, nickel
and coal.
Coal production fell 16% to 48.7 million tonnes in the first
half, partly because of market-related cuts in Australia that started in the
second half of 2020, and reduced exports from South Africa.
Lead output fell by 9% to 117,000 tonnes and nickel was down
14% to 47,700 tonnes over the period. In the first half, zinc production rose
by 6% to 581,800 tonnes, as COVID-related suspensions started to be lifted, but
Glencore said the second half could be slower than previously thought.
Copper production rose by a modest 2% to 598,000 tonnes and
battery material cobalt by 3% to 14,800 tonnes in the first half.
Oil output of 2.56 million barrels of oil equivalent (boe)
was down 2% from the same year-ago period, as care and maintenance at its Chad
oilfields was offset by output at its Equatorial Guinea project.
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