Miner and commodities trader giant Glencore (LON: GLEN) posted a $2.6 billion loss for the first half of the year and scrapped its dividend, as the coronavirus pandemic dented global demand and lowered prices and production at its mining division.
Despite the virus impact, the Swiss firm managed to remain profitable on an operating basis. Glencore posted $1.5 billion in adjusted earnings before interest and taxes, but booked $3.2 million in impairment charges.
The company said it was putting balance sheet strength ahead of shareholder returns, as net debt climbed 12% to $19.7 billion at the end of June.
The increase in borrowings came as Glencore tapped its credit lines to take advantage of falling oil prices in March and April — it bought cheap crude and sold it on the futures market for a profit.
As a result, its marketing business performed especially well, with full-year earnings expected to come in at the top end of its $2.2-$3.2 billion range, after hitting $2 billion in the first half.
For the rest of this article: https://www.mining.com/glencore-post-2-6bn-loss-scraps-dividend/