Glencore PLC on Wednesday swung to an interim loss following a huge write-off, and the commodity trading and mining company said it had decided to retain its coal and carbon steel materials business.

The Barr, Switzerland based group posted a net loss of $233 million for the first six months of 2024, swung from a profit of $4.57 billion.

For the first half, revenue was up 9.0% to $117.09 billion from $107.42 billion.

Adjusted earnings before interest and tax plunged 55% to $2.85 billion from $6.31 billion.

Adjusted earnings before interest, taxes, depreciation and amortisation fell 33% to $6.34 billion from $9.39 billion, primarily reflecting the normalisation of energy markets from the severe disruptions and ‘volatilities’ seen over 2022-23.

The lower energy contribution, reflecting prior period elevated volatilities, was partially offset by a strong metals performance, Glencore said.

Impairments of non-current assets soared to $1.01 billion from $56 million.

Marketing adjusted Ebit dropped 16% to $1.5 billion, due to lower energy contribution, reflecting prior period elevated volatilities.

Loss per share was 0.02 US cents, swung from earnings per share of 0.36 cents.

Following ‘extensive’ consultation with shareholders, Glencore said it had decided to keep its coal and carbon steel materials business.

Glencore maintained its 2024 annual guidance.

It guides for copper production of between 950,000 and 1.01 million tonnes versus 1.01 million tonnes in 2023.

Full-year guidance for ferrochrome is between 1.1 million and 1.2 million tonnes, from 1.16 million tonnes. Cobalt output is expected at between 35,000 and 40,000 tonnes, compared to 41,300 tonnes.

Annual zinc production is likely to range between 900,000 and 950,000 tonnes versus 918,500 tonnes, while that of nickel is projected at between 80,000 and 90,000 tonnes, against 97,600 tonnes.

But steelmaking coal guidance was revised up to between 19 million tonnes and 21 million tonnes, from the 7 million tonnes and 9 million tonnes forecast previously. This follows its acquisition of a 77% interest in Elk Valley Resources last month.

Glencore warned that the macroeconomic environment remains uncertain, with a meaningful manufacturing recovery in the US, China, and Europe yet to emerge.

Shares in Glencore were up 0.9% to 396.75 pence each on Wednesday morning in London, while they eased 0.9% to R 91.55 each in Johannesburg.

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