Glencore (OTC:) announced on Tuesday that it anticipates profits from its trading division to hit the upper end of its long-term guidance range this year, fueled by high commodity prices and elevated interest rates.
Shares fell 0.2% in London trading.
The company projects its full-year marketing earnings before interest and tax (EBIT) to be between $3 billion and $3.5 billion, approaching the top of its usual forecast of $2.2 billion to $3.2 billion.
Still, Glencore’s full-year production forecast remained unchanged.
“Glencore maintained its production guidance for FY24 and has provided the usual 1H vs 2H weighting, implying a modest volume skew towards the second half of the year for cobalt, zinc and nickel,” analysts commented.
In the first quarter, the company reported a slight 2% decrease in production to approximately 239,700 metric tons compared to the previous year, though it noted a 2% production increase on a like-for-like basis.
Glencore also reported mixed results in the production of materials critical for electric vehicles.
Cobalt production saw a significant drop of 37%, while nickel production increased by 14%. Meanwhile, production levels for zinc and coal were in line with the prior year.
