Glencore commodities trading on track for record profits

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The mining giant said it now expects profits in the first six months of 2022 to top $3.2bn (£2.6bn), above the upper end out of its $2.2-3.2 billion guidance range and roughly the same amount of profit it makes in a full year.

In a business update, the company said: “Our marketing business successfully met the extraordinary global challenges encountered during the period, being a continuous and reliable source of raw materials for our vast customer base.”

“Financial performance continued to be supported by periods of heightened to extreme market volatility, supply disruptions and tight physical market conditions, particularly with respect to global energy markets.”

The company said it expects normal market conditions to resume in the second half of 2022.

Glencore shares rose 4% to 480p in early trading. The stock has soared 60% over the past year, making it one of the biggest beneficiaries of commodity price volatility in the fallout from Russia’s invasion of Ukraine, along with rival mining and its FTSE 100 counterpart, Anglo American, which is up 21% over the same period.

It comes after Glencore announced it planned to pay around $1.5 billion to settle years-long investigations by US, UK and Brazilian authorities into allegations of bribery, corruption and price manipulation.

Glencore boss Gary Nagle said: “There have been pockets of misconduct that have occurred in this business historically.

“We will not tolerate this… we will never see this again in this sector.”

The company continues to be the subject of ongoing investigations in the Netherlands and Switzerland.

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