Glencore has made a sharp turnaround in profit as the Middle East conflict has fuelled commodity trading gains.
The $4.4-billion (approximately R72-billion) gain in the first half of 2026, as compared to the $655-million loss in the same period the previous year, was driven by the repricing of energy and commodity markets following the escalation of the war.
The ongoing Middle East conflict has triggered historic disruptions to global energy markets primarily through the de facto closure and risk escalation around the Strait of Hormuz.
Gary Nagle, Glencore chief executive, said the turnaround came as the war disrupted oil, refined products, liquefied natural gas and freight markets. This resulted in higher prices and increased volatility.
“Against this backdrop, Group Adjusted EBITDA increased 86% to $10.1-billion, while Net income attributable to equity holders increased by more than $5-billion period on period to $4.-billion.
“The industrial segment contributed Adjusted EBITDA od $6.5-billion, up 72% compared with the prior period, reflecting the significantly stronger commodity price environment and solid operational performance across the portfolio.
Benefits offest by weaker US dollar
“These benefits were partially offset by a generally weaker US dollar and higher operating costs exacerbated by the ME conflict supply-chain disruptions materially impacting the availability and pricing of key inputs and consumables (e.g diesel, sulphur and sulphuric acid) beyond normal inflationary considerations,” said Nagle.
Revenue increased 49% to $174-billion from $117-billion, while funds from operations surged 158% to $8.1-billion from $3.15-billion.
The stronger earnings also improved Glencore’s balance sheet as net debt dropped by about $1-billion during the first half to $10-billion, despite $4-billion in net capital expenditure and $1.1 billion in shareholder distributions.
Glencore announced an additional $1.5-billion in shareholder returns, comprising a $1-billion special cash distribution and a $500-million share buyback, taking its announced shareholder returns for 2026 to about $3.5 billion.
The company said it expects continued strong cash generation in the second half, supported by current commodity prices and higher expected production volumes, particularly steelmaking coal.
“Based on the current commodity prices and an expected uplift in H2 volumes, particularly for steelmaking coal, we anticipate continued strong cash generation through the remainder of 2026. On this basis, and assuming no significant change, we have calculated a full year 206 illustrative Adjusted EBITDA of c.$19.7-billion.”
Read More: Glencore sees revenue rise to R3-trillion amid geopolitical tensions
- Glencore reported a $4.4-billion profit in H1 2026, reversing a $655-million loss the previous year, driven by Middle East conflict-induced commodity market repricing.
- Disruptions in oil, LNG, and freight markets around the Strait of Hormuz caused higher prices and increased volatility, boosting Group Adjusted EBITDA by 86% to $10.1 billion.
- Industrial segment EBITDA rose 72% to $6.5 billion, despite weaker US dollar and higher operating costs due to supply-chain disruptions affecting key inputs.
- Revenue increased 49% to $174 billion, funds from operations surged 158% to $8.1 billion, and net debt declined by $1 billion to $10 billion despite significant capital expenditure and distributions.
- Glencore announced $1.5 billion in additional shareholder returns, expects continued strong cash generation in H2 2026, and projects full-year Adjusted EBITDA around $19.7 billion.
Glencore has made a sharp turnaround in profit as the
Gary Nagle, Glencore chief executive, said the turnaround came as the war disrupted oil, refined products, liquefied natural gas and freight markets.
“Against this backdrop, Group Adjusted EBITDA increased 86% to $10.1-billion, while Net income attributable to equity holders increased by more than $5-billion period on period to $4.-billion.
“
“
Revenue increased 49% to $174-billion from $117-billion, while funds from operations surged 158% to $8.1-billion from $3.15-billion.
Glencore announced an additional $1.5-billion in shareholder returns, comprising a $1-billion special cash distribution and a $500-million share buyback, taking its announced shareholder returns for 2026 to about $3.5 billion.
"Based on the current commodity prices and an expected uplift in H2 volumes, particularly for steelmaking coal, we anticipate continued strong cash generation through the remainder of 2026. On this basis, and assuming no significant change, we have calculated a full year 206 illustrative Adjusted EBITDA of c.$19.7-billion."
Read More: Glencore sees revenue rise to R3-trillion amid geopolitical tensions
