Glencore has recorded a 38 per cent slump in EBIT year on year.
The miner has announced an adjusted EBIT of US$875 million for the first half of 2016, down from US$1.412 billion in the previous corresponding period.
In terms of its EBITDA, Glencore has recorded a 13 per cent year on year drop, from US$4.6 billion in the first half of last year to US$4.02 billion in 2016.
It reported funds from operations fell 21 per cent to US$2.8 billion.
However, spending was down by more than half, to US$1.6 billion, offsetting the FFO.
Despite a relatively difficult year to date, Glencore CEO Ivan Glasenberg remained positive.
“After a difficult start to the year, the more constructive tone of markets in recent months has helped support the pricing of many of our key commodities,” Glasenberg said.
“While we are highly cash generative at current spot prices, we remain mindful that underlying markets continue to be volatile. We are alert to have and have high degree of proven flexibility in adapting to changing market conditions.”
The diversified resources company also increased its focus on disposing non-core assets.
This includes the sale of the Komarovskoye gold deposit in Kazakhstan to Polymetal from US$100 million; the sale of half of Glencore Agri to Canada Pension Plan Investment Board for US$3.125 billion; and the ongoing sale of its Hunter Valley rail assets.
“We have already largely achieved our asset disposals target of US$4 to US$5 billion with a diverse and material pool of asset sales’ processes also on-going,” Glasenberg said.
“Our divestment strategy remains one of maximising value for shareholders through identifying assets where overall Glencore franchise positioning, optionality, and value is preserved or even enhanced