Mining company Glencore reported a record profit of $34.1bn (£28.2bn) last year, largely driven by its coal and trading divisions.
Over half of the profits, $17.9bn (£14.8bn), came from coal production, while the commodity trading unit earned $6.4bn (£5.3bn) in core profit, also its highest ever. Glencore will return more than $7bn (£5.8bn) to shareholders in dividends and buybacks.
The company’s decision to continue coal mining while its rivals left the industry paid off, as the demand for the fossil fuel surged to a record high last year. Additionally, Glencore’s trading business benefited from the volatility in energy markets across the globe.
Glencore, a mining company, plans to return over $7bn (£5.8bn) to shareholders through dividends and buybacks after reporting a record profit largely driven by its coal and trading divisions.
While many mining companies, including Glencore’s competitors, have positioned themselves to benefit from the rising demand for metals associated with the energy transition, Glencore’s profits have been heavily driven by mining and trading fossil fuels.
Glencore has been one of the biggest beneficiaries of the turmoil in commodity markets following Russia’s invasion of Ukraine.
The company’s decision to continue coal mining while others exited the industry paid off, as the demand for the fossil fuel surged to a record high last year.
Glencore’s trading business also profited from the volatility in energy markets globally.
The company’s CEO, Gary Nagle, noted that the unusual conditions in the global energy markets had been significant factors for both its marketing and industrial businesses and that the demand for many of its commodities was expected to remain healthy while supply constraints persisted and inventories remained low.
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