In its first earnings report since going public, the world's largest listed commodities trader said profits for the first quarter increase by 47 per cent.
Glencore International, in which Abu Dhabi's Aabar Investment holds a US$1 billion stake, cited higher prices for raw materials on its diversified portfolio as the catalyst for the earnings.
Glencore controls 60 per cent of the third-party zinc market, 50 per cent of copper, 45 per cent of lead, 38 per cent of aluminium, and almost a third of thermal coal.
Net income stood at $1.3bn, up from $886 million in the same period last year, said the company, which is based in Switzerland. Sales increased by 39 per cent to $44.2bn, it said.
The company last month completed a $10bn initial public offering, the world's biggest this year.
"Our first-quarter results show that Glencore continues to deliver a strong return on equity, emphasising the unique benefits of having large-scale marketing and industrial asset activities spread across a diversified commodity base," said Ivan Glasenberg, the chief executive.
The group confirmed press speculation that it had signed an agreement with the Peruvian copper miner CST to acquire its assets for $475m. This followed the recent acquisition of Zambian copper producer Sable for $28m. The deal would provide Glencore control of deposits in southern Peru with a resource base of 3 million tonnes of contained copper.
"It highlights that Glencore has a clear intent to use the leverage it has been afforded by the new listing to acquire," James Bruce, a manager at Perpetual, told Bloomberg News. Glencore initially advanced 2.7 per cent in early trading in London, but closed 3.4 per cent lower at 505.5 pence.
The interim results in late August will provide a better picture of where the stock is heading as the company provides further detail on its financials, said Jonathan Jackson, the head of equities at Killik & Co in London. "We would prefer to stand back until the shares have gained more of a track record," he said.
