Glencore profits surge as it cashes in on energy chaos

GlencoRe’s profits hit record levels as it cashed in on the chaos in the global energy markets.

The FTse 100 mining and commodities giant capitalised on record high coal prices and its trading arm was boosted by highly volatile energy prices.

Profit hit £9.9bn in the first half of the year, more than nine times higher than the same period last year.

It prompted Glencore to promise a £3.7bn ‘top up’ of its returns to shareholders, including a share buyback and special dividend. shares jumped 3.1pc, or 13.7p, to 459.75p.

Glencore, based in switzerland, has one of the world’s biggest broking businesses, which trades everything from oil and gas to cobalt, nickel and copper.

commodity traders are the middlemen of the global economy, linking the suppliers of the raw materials – often in developing countries – with consumers in wealthy nations.

Glencore, led by chief executive Gary nagle, said its trading arm made more in the first half of the year than it had previously expected to in the whole year. The traders took advantage of huge ‘dislocations’ in the energy market, which created opportunities to profit from buying and selling.

Glencore is also one of the world’s biggest miners and, crucially, is one of the only remaining firms to have a coal business. The price of coal has soared to record levels since the invasion of Ukraine. earnings from Glencore’s coal mines were almost ten times higher than a year earlier because of the jump.

Boss nagle said Glencore did not ‘take advantage’ of Russia’s invasion of Ukraine.

AJ Bell financial analyst Danni Hewson said Glencore’s decision ‘to stick with coal despite climate concerns has reaped dividends with that part of its business accounting for nearly half of its bumper earnings’.

city Index market analyst Joshua Warner said Glencore had ‘reaped the rewards’ from soaring gas and coal prices.