GLNCY Glencore Plc (PK)

By Alex MacDonald 

LONDON--Commodities and mining group Glencore PLC (GLEN.LN) reported a narrower first-half net loss and signaled that it's on track to significantly reduce its net debt by selling unwanted assets to weather the recent commodities turmoil.

The world's third largest diversified miner by market value reported a $369 million net loss for the six months ended June 30, 2016, helped by cost reductions, compared with a $676 million net loss in the same period a year before.

Revenue fell 6% on year to $69.4 billion due to broadly lower commodity prices as well as lower copper, zinc, coal and oil production in the first half compared with the same period a year before.

Glencore's shares have more than doubled so far this year, buoyed by a surge in commodity prices that caught analysts off guard. Production cutbacks, particularly in zinc, and sturdy demand in China, the world's largest consumer of many commodities, after Beijing's recent economic stimulus, have contributed to improved prices.

The Switzerland-based company said it has largely achieved its assets disposal target of between $4 billion and $5 billion, having agreed to $3.9 billion in asset sales so far. The proceeds will be used to pay down net debt, which is now on track to fall to a revised $16.5 billion to $17.5 billion by year end, down from a previous target of between $17 billion to $18 billion.

Net debt was $23.6 billion as of June end, down from $25.9 billion at December-end.

Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

August 24, 2016 03:06 ET (07:06 GMT)

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