A resources executive will abandon at least one fossil fuel even though it significantly boosted his employer’s bottom line.
Gary Nagle refuses to stop phasing out coal despite the commodity boosting Glencore’s earnings per share by 820 per cent to 92 US cents (A$1.33) during the first half of calendar 2022.
“We will not divert from our plan to responsibly run-down our coal business [because] we made a commitment to our stakeholders [and] we made a commitment to the world. It is right for the world and we will continue down that path,” the chief executive said according to News Limited.
Nagle indicated he believes in climate change, an environmental theory that burning fossil fuels creates carbon emissions which might influence long-term weather patterns.
“In an extreme event that all the governments of the world come together and say, we are putting a pause on [stopping] climate change, and we need energy security and please produce more coal,” he said according to the media outlet.
“I think that is very unlikely to happen.”
The remarks came after coal sales and the global energy crisis propelled a 119 per cent jump in the proponent’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$18.9 billion (A$27.3B) during the period.
“Global macroeconomic and geopolitical events during the half created extraordinary energy market dislocation, volatility, risk and supply disruption – resulting in record pricing for many coal and gas benchmarks and physical premia – [are] underpinning a US$10.3B (A$14.9B) increase (119 per cent) in group adjusted EBITDA to US$18.9B (A$27.3B),” Nagle said in a public statement.
“Marketing adjusted EBIT more than doubled to US$3.7B (A$5.3B) with energy products the standout, while industrial adjusted EBITDA increased US$8.4B (A$12.1B) to US$15B (A$21.7B) period-on-period.”
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