Glencore sees shiny future from electric vehicles

AFP, ZURICH: Mining and commodities giant Glencore said yesterday it had bounced back into profit in the first half of the year and the long-term outlook was good as the widespread adoption of electric vehicles would boost demand for raw materials.

Net profit at the Switzerland-based company came in at $2.4 billion (two billion euros) compared to a loss of $369 million in the first half of last year on the back of a rebound in commodity prices and efforts by the firm to clean up its balance sheet.

When commodity prices nosedived in 2015, investors turned on Glencore amid concerns that the company’s towering debt, which had hit $30 billion, could prove unsustainable with the value of its assets in decline.

The company’s losses hit a staggering $5 billion that year.

Chief executive Ivan Glasenberg, seen as a maverick in the mining world, acted boldly to get debt under control.

He scrapped dividends, sold assets and reined in production in a campaign that has now trimmed debt to $13.9 billion.

Glencore sees shiny future from electric vehicles

AFP, ZURICH: Mining and commodities giant Glencore said yesterday it had bounced back into profit in the first half of the year and the long-term outlook was good as the widespread adoption of electric vehicles would boost demand for raw materials. Net profit at the Switzerland-based company came in at $2.4 billion (two billion euros) compared to a loss of $369 million in the first half of last year on the back of a rebound in commodity prices and efforts by the firm to clean up its balance sheet. When commodity prices nosedived in 2015, investors turned on Glencore amid concerns that the companys towering debt, which had hit $30 billion, could prove unsustainable with the value of its assets in decline. The companys losses hit a staggering $5 billion that year. Chief executive Ivan Glasenberg, seen as a maverick in the mining world, acted boldly to get debt under control. He scrapped dividends, sold assets and reined in production in a campaign that has now trimmed debt to $13.9 billion.