Glencore Plc (GLNCY.US) reported a decline in annual profit, as record-high copper prices failed to offset a slump in earnings from its extensive coal operations. The company's financial results revealed total revenue for 2025 reached $247.5 billion, marking a 7% year-on-year increase. However, core profit stood at $13.5 billion, a 6% decrease compared to the previous year. Despite the profit decline, Glencore announced it would return $2 billion to shareholders, which includes an $800 million additional dividend.

This earnings announcement comes less than two weeks after negotiations between Rio Tinto Group and Glencore collapsed, temporarily concluding a deal that could have created the world's largest mining giant. The talks reached an impasse as the parties failed to agree on the level of premium Rio Tinto should pay. Rio Tinto had hoped to acquire Glencore to expand its exposure to the copper sector, where prices hit a record high last month. Acquiring Glencore would have doubled Rio Tinto's copper production and enhanced its future growth potential. The appeal of copper has become increasingly evident over the past year, with prices surging approximately 35%. Mining giants have long warned of tightening future supply due to a lack of new mines and anticipated growth in demand.

However, Glencore's copper business has faced intense investor scrutiny in recent years. The situation has been exacerbated by declining output and the company's repeated failure to meet or downward revisions of production targets, particularly against the backdrop of falling prices for its primary profit driver—coal. Gary Nagle, Glencore's Chief Executive, has been attempting to revitalize the copper business, whose production has declined by about 40% since 2018. Late last year, the company unveiled a plan to double production over the next decade and expressed confidence that 2026 would mark the low point for output, with a recovery expected to begin from 2027. The company stated on Wednesday that it had reached an agreement with the state mining company of the Democratic Republic of Congo on a package of land, which will allow it to increase copper production in the country.

The divergent performance between its metals and coal operations was also reflected in Glencore's trading profits. Earnings from its large-scale commodity trading business also fell to $2.9 billion. While metal traders capitalized on tariff threats from US President Trump to generate substantial profits and demonstrated strong performance, energy and coal trading profits declined by 32%. The company's net debt remained largely unchanged at $11.2 billion. Although this figure is above the company's target level—which typically restricts additional dividends—Glencore stated it would still pay the supplementary dividend because it anticipates monetizing its stake in agricultural trader Bunge Global at a future date.