LONDON (Reuters) - Glencore (GLEN.L) reported a 23 percent rise in first-half core earnings on Wednesday, just below analyst forecasts, as higher costs and lower prices for cobalt and other products ate into profits.
FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, November 20, 2012. REUTERS/Arnd Wiegmann/File Photo
The miner and commodities trader said its profits for January-June were a record, following full-year 2017 results that it said were its best yet, but CEO Ivan Glasenberg said market conditions were likely to remain volatile.
Many mining stocks have pared gains this year as metals markets weakened in response to trade tensions and uncertainty about Chinese demand .FTNMX1770.
While other producers have also warned of cost inflation, Glencore’s share price has come under additional pressure from its exposure to political risk in Democratic Republic of Congo and a U.S. Department of Justice (DoJ) investigation.
Glencore’s first-half adjusted EBITDA (earnings before interest tax, depreciation and amortization) of $8.3 billion missed a consensus forecast of $8.5 billion.
Adjusted earnings before interest and tax (EBIT) from its marketing division of $1.5 billion, up 12 percent, were in line.
Glencore’s shares, down around 17 percent this year, fell by 1.6 percent by 0900 GMT.
Despite the muted reception, Glencore said full-year marketing EBIT for 2018 was expected to be within the top half of its $2.2 billion to $3.2 billion long-term guidance range.
As Glencore this year ramped up copper operations in Democratic Republic of Congo, it said copper costs were higher than expected as by-products, such as cobalt CBD0 lost value.
Cobalt’s use as a battery metal drove it to a peak of $98,000 per ton in April, but it has since
