Glencore: not created equal

For now, a rising tide, in the shape of robust global manufacturing demand and another leg of Chinese growth, lifts all boats. Prices of copper, zinc and cobalt – three of the metals Glencore thinks will underpin the coming electric vehicle and energy storage revolution – jumped 22, 49 and 115 per cent respectively. And zinc, where Glencore can lay claim to the title of global swing producer, continues to grow its proportion of group profitability. That buttressed the industrial division’s swing to adjusted operating profits of $2.43bn (£1.87bn), versus a loss of $335m last time round.

First-half thermal coal prices also increased between 50 per cent and 70 per cent compared with 2016, contributing $823m to the above profit figure, after hedging. We still need convincing that coal has a place in Glencore’s 'mid and late cycle' commodity universe, though.

A more constant source of reliability was found in the marketing arm, whose somewhat opaque activities were 13 per cent more profitable at the adjusted operating profit level. Consequently, Glencore has raised its 2017 forecasts for the division by $100m to $2.4-2.7bn.

Investec’s forecasts full-year pre-tax profit of $5.03bn and EPS of 28.6¢, compared with $1.6bn and 13.8¢ in 2016.