Glencore in vow to come clean on details of tax payments around the world

By Rob Davies for the Daily Mail
Updated: 19:28 EDT, 14 June 2011

Glencore promised to publish details of its tax payments around the world for the first time, as it reported first quarter profits that far outstripped last year but failed to impress the markets.

The transparency pledge came as Glencore released its debut results as a public company, reporting net income up 47pc to £794m in the first three months.

The company has battled controversy over its tax payments since allegations emerged earlier this year that it avoided tax in Zambia, one of the poorest nations on earth.

Glencore has always protested its innocence and finance director Steve Kalmin is aiming to put to bed any further public speculation over the firm’s tax affairs.

‘I’ve seen one particular company publish something on their tax payments and we would certainly look to do something on that going forward,’ he said.

Chief executive Ivan Glasenberg promised details on charitable donations in Glencore’s first ever sustainability report, likely to appear within a few months.

The twin measures form part of a concerted effort to improve the company’s public image, amid investor anxiety about its corporate governance record.

Despite what appeared a solid set of results, the firm watched its shares slide more than 4pc.

The City had expected better and latched onto the fact that net profit was down on the fourth quarter of last year.

Pre-tax profit of £850m can’t be compared to last year due to accounting changes when the firm went public.

Shares in the company fell 23.4p to 499.9p and have seldom ventured above the 530p launch price.

Glasenberg quashed speculation that the company is preparing a £12bn bid for fellow miner ENRC.

‘Although we talk to a lot of people in the sector, we’re not currently considering a bid for ENRC,’ he said.