Glencore profits soar 47% on strong demand

14th June 2011, Comments 0 comments

Commodities giant Glencore said Tuesday its first quarter net profits soared 47 percent to $1.3 billion (900.5 million euros), boosted by strong demand for energy and metals.

Revenues reached $44.2 billion, up 39 percent compared to the same period last year.

The Swiss-based commodities giant, which was recently listed on the London and Hong Kong stock exchanges, said it "remains well positioned for 2011."

"Despite the recent commodity price volatility, the directors believe that underlying fundamentals across many of our key commodities are supportive and that economic activity and demand for commodities remains healthy," said Glencore.

Nevertheless, the group's chief executive Ivan Glasenberg acknowledged growth in the second quarter is likely to be weaker than in the first three months of the year.

"We see a pull back in China and it will continue, but underlying fundamentals remain," he said, adding that he hoped that the slight slowdown observed in the United States would be only temporary.

Glasenberg also dismissed rumours that Kazakhstan mining group ENRC was an acquisition target.

"Glencore monitors a wide range in the sector," said Glasenberg, adding that "we talk to a lot of people."

"We are not actively considering a bid for ENRC," he added.

Britain's Sunday Times reported over the weekend that Glasenberg has held takeover talks with three billionaires who control around 45 percent of the London-listed Eurasian Natural Resources Corporation.

Stocks in ENRC jumped 4.65 percent to close at 776.5 pence Monday on the back of the acquisition talk.

© 2011 AFP

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