Glencore Plans A $1 Billion Share Buy Back After Returning To Profit

A mountain of coal. Luke Sharrett/Getty Images)

Diversified natural resources group Glencore posted a $1.72 billion profit in the six months to the end of June, overturning the big losses of the previous year.

The result is a stark contrast to the $9.386 billion loss in the first half of 2013 partly due to write downs after the purchase of the miner Xstrata.

Adjusted earnings were up 8% to $6.5 billion.

CEO Ivan Glasenberg says the company made decisive progress in delivering on the potential created by the Xstrata acquisition over the first half of 2014.

“We remain the most diversified natural resources company by activity, commodity and geography, providing us with a stable operating platform as well as a high degree of optionality to underlying prices and bolt-on or brownfield development opportunities,” he says.

“We look to the future with optimism based on our strong starting point and our culture of entrepreneurialism and hard work to leverage tightening commodity fundamentals.”

The company declared an interim distribution of $0.06 a share, an 11% increase.

Glencore also announced plans for a share buy-back of up to $1 billion.

This slide shows where Glencore sits against competitors in the world with its minerals:

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