Glencore Raises Coal Guidance Amid Unprecedented Market Conditions

By Jaime Llinares Taboada

Glencore PLC on Friday raised price and cost guidance for its coal operations and said that the trading business is outperforming expectations.

The commodity mining and trading giant said that unprecedented dislocation in energy markets has resulted in record pricing differentials between coal benchmarks and quality categories. As a result of these larger differentials, Glencore has increased coal portfolio mix guidance for the first half to $82-$86 a metric ton relative to the Newcastle thermal coal pricing benchmark of $318 a ton. This compares with previous 2022 guidance of $32.8 a ton, based on a previous Newcastle price of $175 a ton.

In line with higher prices, Glencore is also increasing first half cost guidance for its thermal coal operations to $75-$78 a ton, up from previous 2022 guidance of $59.3 a ton.

In addition, the company said that its marketing segment--Glencore's trading business--is expected to deliver half-year adjusted earnings before interest and tax of more than $3.2 billion. This is the top end of the company's long-term annual guidance for the marketing arm.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

June 17, 2022 02:40 ET (06:40 GMT)

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