COMMODITIES
How probe in the US continues to stifle Glencore shares
Concerns over a potential investigation by US authorities continue to weigh on the Glencore share price, but the commodities giant says it hopes its growing cash flows will draw investors back and buoy the stock. For the first half of the year, Glencore reported net income had increased 13% to $2.5bn and revenue grew 8% to $108.5bn, compared with the same period last year. Funds from operations were up 8% to $5.6bn. Earnings per share also rose from $0.17 a share to $0.19. Net debt was down 16% to $9bn. The share price was, however, flat and closed at R56 on the day. It was a long way from the R64 it traded at before the company notified the market in early July that it had been subpoenaed to provide documents to the US department of justice. The probe was in relation to its business activity in the DRC and Venezuela, with respect to the US Foreign Corrupt Practices Act and money laundering statutes. Even at R64, the share was already trading at a 14% discount to its peers since Jan...
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