Full Breakdown
Glencore's Energy Trading Performance Declines Despite Increased Volumes
2/18/2026, 8:46:05 PM
Overview of Glencore's Energy Trading Results
In its annual earnings report, Glencore PLC (GLEN.L) announced that while it traded more oil in 2025, it experienced a decline in earnings from its energy trading business for the third consecutive year. The company reported trading 4.2 million barrels per day of crude oil, oil products, and gas products, marking an 11% increase from the previous year and the highest volume since 2020. However, this figure remains significantly lower than the 5.6 million barrels per day traded in 2017.
Factors Impacting Performance
Glencore attributed its declining earnings to several factors, including a well-supplied market, geopolitical uncertainties, and a general softening of market sentiment. The company reported earnings before interest and taxes (EBIT) from energy and steelmaking coal trading fell by 32% to $614 million in 2025, a stark contrast to the record high of $5.2 billion in 2022. The first half of 2025 was particularly challenging, with EBIT from energy marketing plummeting to just $40 million due to significant reductions in average benchmark prices.
Historical Context and Recent Developments
The decline in earnings follows a tumultuous period for Glencore, which included disruptions to its Russian business due to the invasion of Ukraine and the impact of the COVID-19 pandemic. The U.S. Department of Justice (DOJ) concluded its monitorship of Glencore's trading activities in March 2025, a year earlier than anticipated. This monitorship, initiated after Glencore's agreement to pay fines related to bribery and market manipulation, had imposed significant costs on the company, amounting to $85 million in 2024 alone.
Leadership Changes
2025 also marked the end of Alex Sanna's tenure as Glencore's head of oil. He was succeeded by Maxim Kolupaev, who previously led the gas and power division. This leadership transition comes at a critical time as Glencore seeks to navigate the challenges within the energy trading sector.
Official Statements & Responses
Glencore stated, "Energy and steelmaking coal continued to face a more subdued environment," highlighting the ongoing challenges in the market. The company also announced plans to return $2 billion to shareholders, indicating a commitment to maintaining investor confidence despite the downturn in earnings.
Criticism & Opposition
Critics have pointed out that Glencore's struggles in the energy sector reflect broader issues within the commodity trading industry, particularly in light of geopolitical tensions and market volatility. The decline in earnings raises questions about the company's strategic direction and its ability to adapt to changing market conditions.
What's Next for Glencore?
As Glencore moves forward under new leadership, the company will need to address the challenges posed by a competitive and fluctuating energy market. The upcoming fiscal year will be crucial in determining how effectively Glencore can leverage its increased trading volumes to improve profitability and stabilize its energy trading business.
