Switzerland-based mining and trading company Glencore has announced its operational and financial results for the first half of 2026, reporting lower steelmaking coal production, while higher commodity prices supported a significant improvement in earnings.
In the given period, Glencore's steelmaking coal production decreased by 14 percent year on year to 13.5 million mt. Canadian steelmaking coal production fell by 19 percent to 10.3 million mt due to lower throughput and yields at EVR amid pit sequencing and weather-related challenges. The company expects yields to normalize in the second half.
Meanwhile, Australian steelmaking coal production increased by 7 percent year on year to 3.2 million mt, reflecting the recovery of Oaky Creek from the water inflow recorded in the comparison period. Australian production rose by 67 percent quarter on quarter following the completion of a longwall move at Oaky Creek and more favorable weather conditions.
Glencore has narrowed its steelmaking coal production guidance for 2026 from 30-34 million mt to 30-32 million mt, reducing the midpoint by one million mt. The company expects 56 percent of its full-year output to be produced in the second half, supported by higher Canadian yields and the completion of the Oaky Creek longwall move.
The company's average realized steelmaking coal price increased by 24 percent year on year to $206.90/mt, while the average prime hard coking coal settlement price rose by 28 percent to $236.80/mt. However, its steelmaking coal unit cash cost increased by 17 percent to $127/mt.
In the first half, Glencore's Canadian steelmaking coal operations generated adjusted EBITDA of $843 million, up by 7 percent year on year, with the corresponding margin rising by one percentage point to 39 percent. Adjusted EBITDA from its Australian steelmaking coal operations increased by 75 percent to $238 million, while the margin improved from 25 percent to 33 percent.
Glencore's consolidated revenue rose by 49 percent year on year to $174.43 billion and its adjusted EBITDA increased by 86 percent to $10.12 billion. The company recorded a net profit attributable to equity holders of $4.41 billion, compared with a net loss of $655 million in the first half of 2025.
Adjusted EBITDA from Glencore's energy and steelmaking coal industrial assets increased by 35 percent to $2.36 billion, supported by stronger coal prices and higher oil refining margins. These factors were partially offset by lower EVR production, unfavorable currency movements and higher diesel and royalty costs. The segment's adjusted EBITDA margin edged up from 26 percent to 27 percent.
