Glencore H1 EBITDA jumps 86% to $10.1B on energy market volatility

Glencore reported H1 adjusted EBITDA of $10.1 billion, up 86 percent from a year earlier, as Middle East conflict-driven energy volatility boosted its marketing business.

"Our assets performed in line with market guidance, which alongside substantially higher period-over-period average prices for our core commodities and a favourable marketing backdrop, underpinned a material increase in earnings," Chief Executive Officer Gary Nagle said.

Revenue climbed 49 percent to $174.4 billion. Net income attributable to equity holders swung to $4.4 billion from a $655 million loss a year earlier. Marketing Adjusted EBIT jumped 142 percent to $3.3 billion, while Industrial Adjusted EBITDA rose 72 percent to $6.5 billion. Funds from operations increased 158 percent to $8.1 billion. Net debt fell $1 billion to $10.2 billion, with leverage at 0.56x adjusted EBITDA.

Glencore announced additional shareholder returns of about $1.5 billion, including an $8.5c-per-share special distribution funded by its Bunge stake and a new $500 million buyback, lifting total 2026 returns to about $3.5 billion. The company also plans a secondary ASX listing targeting October 2026 admission, citing Australia's A$4.4 trillion pension pool and resources-focused investor base.

The Industrial segment's $6.5 billion EBITDA reflected average period-over-period price increases of 39 percent for copper and 22 percent for zinc, plus gains across energy and steelmaking coal portfolios. Copper EBITDA exceeded $3 billion, up from $1.1 billion in H1 2025, with the African copper business contributing more than $1 billion after production rose 66 percent to 138,000 tonnes. Industrial oil EBITDA increased to $432 million from $164 million, aided by refining operations including the Cape Town refinery.

Higher input costs partially offset commodity price gains. Industrial costs rose $1.1 billion, driven by diesel, sulfur and sulfuric-acid expenses, with Brent crude averaging $91.30 per barrel in Q2. Sulfuric-acid costs at DRC operations ran 40 percent above budget, while sulfur costs at Murrin were 67 percent above budget. Chief Financial Officer Steven Kalmin characterized much of the higher cost base as transitory.

Copper growth projects are advancing, with the Alumbrera restart in Argentina now expected to deliver first production in H2 2027, ahead of the prior H1 2028 guidance. The company maintained its targets of roughly 1 million tonnes annualized copper production by 2028 and 1.6 million tonnes by 2035. Average annual capex guidance for 2026-2028 was raised 5 percent to $6.8 billion, reflecting inflation in capital goods and energy costs.

Glencore raised its full-year 2026 illustrative adjusted EBITDA to about $19.7 billion, reflecting continued strong pricing and expected higher H2 volumes, particularly for steelmaking coal. The guidance raise indicates management expects the favorable commodity environment to persist. Investors will watch the ASX listing admission in October and H2 production data for confirmation.

This article is for informational purposes only and does not constitute investment advice.