Although markets around the world are seeing losses at record-setting paces, commodities are in high demand and UK based Glencore is one trader that is reaping the rewards. Newly listed on the London Stock Exchange, this trader has seen a rise of 58% attributed to the rising market prices around the globe.
Profits for Glencore are reported as being an amazing £1.6 billion in just the first six months of 2011. Market analysts indicate that this is largely due to the high global demand for natural resources. Glencore trades in such commodities as agriculture production, energy and metals.
Ivan Glasenberg, CEO of Glencore believes that the gains were in large part due market volatility caused by turmoil in the Middle East, the earthquake and subsequent tsunami in Japan and of course the debt crisis. However, Glasenberg goes on to note that this bearish volatility may have long term effects which is why Glencore is on the alert for market changes in order to minimise an adverse impact.
One area to watch is energy. Glencore saw profits double in this area despite the extreme volatility of this particular segment of the commodities market. Perhaps it is in response to the growing turmoil in the Middle East and perhaps it is because the market is losing ground in other areas. The end result is that the marketing division for energy played out well in the first half of 2011.
Being newly listed on the London Stock Exchange, Glencore is perhaps proud to be able to announce the first dividend since listing there, five cents per share. On a global level, Glencore is the largest commodities trader which showed a profit of £88.77 bn in 2010. The firm employs over 57,000 people in more than 40 countries around the world.