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Investing.com -- Glencore PLC (LON:GLEN) posted a decline in first-half (H1) adjusted earnings on Wednesday, as weaker coal prices and reduced copper output weighed on results.
The company also reported a deeper net loss than expected due to a sizable impairment tied to its Colombian coal assets.
Glencore shares dipped 4.2% in London as of 10:05 GMT.
Adjusted EBITDA fell 14% year-on-year to $5.43 billion, slightly below the $5.56 billion consensus estimate from Visible Alpha. The company attributed the decline to lower coal prices and continued operational issues across its copper business.
Industrial unit earnings fell 17% to $3.8 billion as a result.
Despite expectations for a return to net profit of about $337 million, Glencore recorded a net loss of $655 million, driven by $900 million in impairment charges from its coal operations in Colombia. That marked a wider loss than the $233 million reported a year ago.
Glencore CEO Gary Nagle said the company expects a stronger second half, especially from its copper business, which faced temporary operational challenges including “mine sequencing, lower grades, water constraints and cobalt stockpiling.”
He added that affected operations “expect a substantial step-up in H2.”
Glencore also said it will maintain its primary listing in London, concluding that a move to New York would not deliver added value for shareholders at this stage.
The miner had previously disclosed in February that it was reviewing its listing location, with Nagle citing New York as a potential option.
Jefferies analysts said it was "a weak H1 for Glencore, but H2 should be better."
"We expect the somewhat aggressive guided 2H production increases and targeted $1bn of annualized cost savings to be the key topics of the earnings call."