Glencore reports rise in operating profit

The company said it was seeing healthy demand for commodities.

Glencore, the world’s largest diversified commodities trader said marketing activities were boosted by a strong performance from its oil and grain divisions that outweighed a lower contribution from its metals and minerals divisions.

“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,” it said.

Reporting its first set of results since it listed in a record initial public offering last month, the group said adjusted earnings before interest and tax (EBIT) rose to $1.8 billion (£1.1bn) from $1.2 billion in the year-earlier period.

Net profit rose 47 percent to $1.3 billion as revenues grew 39 percent.

Most of the top diversified mining companies have reported a tough start to 2011, as floods and heavy rains hampered output in Australia, South Africa, Zambia and Columbia.