First-half adjusted EBITDA rose 86% to $10.115 billion
Glencore said Wednesday it intends to apply for a secondary listing on the Australian Securities Exchange, targeting admission in October. The company said listing on the ASX would broaden its shareholder base, improve trading liquidity and enhance its corporate financial flexibility.
The listing follows failed tie-up talks this year with rival Rio Tinto about a potential combination that could have turned Glencore into the world’s biggest mining company and copper producer. Rio Tinto is dual-listed in London and Sydney.
The decision also comes nearly a year after Glencore pulled plans to switch its main listing to New York from London. At the time, the company said that despite the scale and depth of U.S. capital markets, switching its listing or having a sponsored American depositary receipts program would not offer better value for shareholders. It promised to keep its listing under review.
The announcement accompanied first-half results. Group adjusted earnings before interest, taxes, depreciation and amortization rose 86% to $10.115 billion, a near-record first-half result. The trading unit reported a more than doubling of adjusted earnings before interest and taxes, to $3.3 billion.
The trading arm capitalized on volatile energy markets triggered by conflict in the Middle East. Closure of the Strait of Hormuz chokepoint on the Persian Gulf left countries scrambling for replacement oil and gas supplies. Jet fuel and diesel were particularly affected and commanded high premiums.
Glencore’s energy traders are among the world’s largest buyers and sellers of crude oil and its products. They source commodities and sell them to customers around the world and buy from third parties with the goal of selling for a higher price. Benefiting from price differences — or arbitrage — across locations is central to how traders make money.