Look­ing at new sources of de­mand

The Star Early Edition - - COMPANIES -

GLOBAL di­ver­si­fied nat­u­ral re­source firm, Glen­core said yes­ter­day that it has set its eyes on new sources of de­mand to be un­locked by the po­ten­tial large-scale roll out of elec­tric ve­hi­cles and en­ergy stor­age sys­tems. Glen­core re­ported a 68 per­cent in­crease to $6.7 bil­lion (R90bn) in the ad­justed earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion, and a 334 per­cent in­crease to $3.8bn in earn­ings be­fore in­ter­est and taxes for the first half of 2017. Net debt fell a fur­ther $1.6bn to $13.9bn from end of 2016, strength­en­ing its bal­ance sheet. The net in­come at­trib­ut­able to eq­uity hold­ers in­creased to $2.5bn, up from a loss of $369 mil­lion last year. Glen­core at­trib­uted its turn of for­tunes to favourable fun­da­men­tals and ris­ing prices for key com­modi­ties amid ro­bust growth mo­men­tum in the global econ­omy though cop­per, nickel and oil pro­duc­tion was down. Chief ex­ec­u­tive, Ivan Glasen­berg, said that the miner’s ef­forts to re­po­si­tion its bal­ance sheet and drive fur­ther in­dus­trial as­set port­fo­lio im­prove­ments over the last two years were re­flected in strong first-half fi­nan­cial per­for­mance. “Amid the best global eco­nomic growth mo­men­tum seen in re­cent years, our as­sets re­ported strong mar­gins, gen­er­ated by sig­nif­i­cantly bet­ter com­mod­ity prices and the favourable cost struc­tures,” Glasen­berg said. – Siphelele Dludla

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