Glencore (LSE:GLEN) expects its marketing division’s adjusted earnings before interest and tax (EBIT) to exceed US$5 billion ($7.19 billion) in 2026.
The commodities group’s 2 October update lifts its previous indication of about US$4.9 billion, following a near-record first-half performance driven by changes in oil, refined products, gas, and freight markets.
Its marketing business sources commodities from Glencore’s operations and third-party producers, then transports and supplies them to customers.
The division generated record adjusted operating earnings of US$6.4 billion in 2022, when Russia’s invasion of Ukraine disrupted commodity markets, according to Reuters.
Glencore is also revising how it calculates its long-term marketing earnings guidance from 2027, linking the range to inventory levels and the cost of financing them.
Using June inventory levels and current funding costs, the new methodology produces an indicative annual range of US$2.8–4.2 billion, compared with the existing US$2.3–3.5 billion range.
The company says its previous framework reflected lower inventories and interest rates.
Meanwhile, Glencore reiterates that trading under its Australian Securities Exchange (ASX) secondary listing is expected to begin on 14 October under the code GLC.
Australian investors will trade CHESS Depositary Interests, each representing a beneficial interest in one ordinary Glencore share. The listing date was previously announced on 24 September.
Write to France Pinzon at Mining.com.au
Main image: Glencore
