Glencore shares fell 2% in early trading following the announcement of results for the first half.
The miner and commodities trader saw adjusted EBITDA fall 13% to $4bn, with an overall net loss attributable to shareholders of $369m (H115: $676m). The group generated cash (funds from operations) of $2.8bn in the half, down 21% on a year previously. Full year free cash flow is expected to be upwards of $4.5bn based on current commodity prices.
The Marketing division, responsible for the group's trading activities, saw adjusted EBIT increase 14% to $1.2bn, supported by a strong contribution from Metals & Minerals. Full year guidance for the division remains unchanged at $2.4bn-$2.7bn.
The group has "largely achieved" its asset disposal target of $4-5bn this year, with $3.9bn of assets sold and further sales ongoing. Cost are also expected to fall, with estimates for full year unit costs reduced and capital expenditure for the half of $1.6bn, down 51%.
Net debt and net funding both fell by $2.3bn in the half (down 9% and 5% respectively). The Group has lowered its targets for both funding and debt, to $31-$32bn and $16.5bn-$17.5bn respectively, by the end of 2016.
CEO Ivan Glasenberg commented:
"After a difficult start to the year, the more constructive tone of markets in recent months has helped support the pricing of many of our key commodities. While we are highly cash generative at current spot prices, we remain mindful that underlying markets continue to be volatile. We are alert to and have a high degree of proven flexibility in adapting to changing market conditions."
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