Glencore reported an adjusted EBITDA of $6.3 billion for the first half of the year, a one-third decrease from $9.4 billion during the same period last year. Revenue amounted to $117 billion, up from $107 billion the previous year.

According to the company, the lower profit is due to decreased commodity prices, particularly for thermal coal.

In-Depth Dialog

A notable development is Glencore's decision not to spin off its coal business. The company stated that it engaged in an in-depth dialog with its shareholders on this issue:

«Over 95 percent of shareholders who expressed a preference supported keeping the coal and carbon steel business», citing mainly that it enhances Glencore's cash generation ability. The company plans to invest these funds into its portfolio of energy-transition commodities, such as copper.

Coal Remains Significant

The board of directors decided to retain the coal and carbon steel business «considering both risk and opportunity scenarios», as this currently represents the optimal path for creating concrete and realistic value for Glencore shareholders.

A closer look at the numbers shows that Glencore’s business remains heavily coal-oriented. Coal mining contributed nearly a third of the adjusted EBITDA with $1.8 billion.

Long-Term Climate Neutrality

Earlier in the spring, the mining giant reaffirmed its goal to achieve climate neutrality by 2050, which would likely signal the end of its coal business, provided political support continues.

For companies like Glencore, heavily reliant on fossil fuels, securing external financing has become challenging, with many banks refusing to grant loans.

Debt Reduction

In light of this, Glencore’s decision to reduce debt also appears logical. Net debt fell from $4.9 billion to $3.6 billion over the past year. The company primarily borrows through bonds in the capital markets.