Global commodities trader Glencore has retained its money-spinning coal business as well as the carbon steel-making operations despite growing pressure from environmentalists to demerge the two units.
Coal has been a major income earner for Glencore, with energy and steel-making coal accounting for $2.7 billion (R49.6bn) of the company’s total earnings before interest, tax, depreciation and amortisation (Ebitda) of $6.3bn for the half-year period to June, 2024.
Bruce Williamson, a resource analyst at Integral Asset Management, told Business Report “coal is the biggest contributor” to Glencore’s earnings.
However, low prices have been impacting the company’s earnings, with Glencore’s coal operations recording a $2.7bn lower contribution to its industrial category adjusted Ebitda of $4.5bn, which was 39% softer in the half year to June compared to the previous year.
The earnings…