By Giulia Petroni

Glencore reported a drop in first-half profit after the weakening of energy markets, inflationary pressures and limited global economic growth contributed to the material decline of commodity prices in the period.

The Anglo-Swiss commodity mining and trading company on Tuesday reported net profit of $4.57 billion for the six months ended June 30 compared with $12.09 billion a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization--a closely watched figure--decreased 50% on year to $9.40 billion, reflecting the normalization of energy market imbalances and volatility from 2022 levels.

Net debt stood at $1.54 billion at the end of June from $75 million at the end of last year.

Glencore said it has lifted the total 2023 shareholder returns to around $9.3 billion through a special cash distribution of around $1 billion and a $1.2-billion buyback program planned to run until the release of full-year results in February 2024.

Looking ahead, the company said that moderating inflation and supportive government policy in China across end-user sectors are bringing a more positive macroeconomic backdrop in the second half.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

August 08, 2023 02:42 ET (06:42 GMT)

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