Commods prices lift Glencore H1 as company looks to growth in battery market

Higher commodity prices boosted first half earnings at Glencore with adjusted earnings before interest, tax depreciation and amortisation up 70% to $6.7bn as the company said the growth in the electric car and battery storage market would unlock new demand for metals.

Earnings per share increased to 17 cents a share from a loss of 3 cents a share last year. Net debt fell $1.6bn to $13.9bn.

"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 now embedded across the portfolio,” chief executive Ivan Glasenberg said.

“Marketing similarly performed well, with Adjusted EBIT up 13% to $1.4bn, as improving fundamentals created a more supportive marketing environment for our core commodities.

“The potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling underlying commodities, including copper, cobalt, zinc and nickel,”

Glencore increased full year earnings guidance for its marketing or trading arm by $100m to $2.4bn to $2.7bn. The company added that it would generate free cash flow of $7.1bn this year if commodity prices stayed at current levels.