Swiss commodities titan Glencore International PLC (GLEN.LN) said Thursday it's concerned about volatility in the commodities markets, but remains optimistic about the long-term economic prospects that underpin its business.

In its second earnings report since it listed shares in London and Hong Kong in May, the company reported a 57% rise in first half adjusted net income to $2.45 billion due to strong performance in its marketing and industrial activities.

"The short-term volatility caused by renewed bearishness on sovereign debt in developed markets is of course a concern to us," said chief executive Ivan Glasenberg. But he noted that looking forward, the company remains "optimistic about long-term global economic prospects, and that the trends that underpin the growth of Glencore's business are firmly in place."

He said the recent market turmoil hasn't had any material impact on demand. Asian countries continue to grow and fast paced urbanization in China, the world's largest consumer of many basic commodities, continues to fuel robust demand for commodities. Even America, where U.S. debt woes have raised concerns about frail economic growth, demand is flat with signs of improvement emerging, Glasenberg said.

Glasenberg said he hopes to be able to deliver good results in the second half and remains bullish about commodity prices.

Adjusted EBIT at the marketing division rose 45% on year to $1.25 billion in the first half due to improved profitability from the energy segment, particularly in the first quarter. Adjusted EBIT at its industrial activities grew 54% to $2.05 billion as it started to deliver on its growth pipeline.

Glencore said its oil exploration and production portfolio and the Congolese Mutanda copper and cobalt development projects are running ahead of schedule, although its Katanga and Kazzinc expansion projects are running slightly behind schedule.

Glasenberg noted that the current market turmoil has created buying opportunities for the company. "Today we do take the view that there (are)...cheap opportunities out there," he said.

On Wednesday Glencore tabled an offer valuing nickel miner Australia's Minara Resources Ltd. (MRE.AU) at $1.02 billion Australian dollars (US$1.07 billion). Glasenberg didn't comment on whether the company would pursue similar types of acquisitions in the future, but said the current market turmoil has allowed it to look at buying opportunities more aggressively.

Glasenberg said he was dismayed that the company's stock hasn't performed better since the IPO in May 19, but that he expects the shares to better reflect its earnings potential as its continues to grow and deliver good results.

The Baar, Switzerland-based commodities group, which trades commodities, mines and owns stakes in public companies such as Xstrata PLC (XTA.LN), has seen its shares fall 25% since its listing, buffeted by a range of factors including renewed concern about the state of the global economy.

At 0838 GMT, the company's shares were up 2% or 8 pence at 397.35 pence a share.

The company also declared a maiden interim dividend of $0.05 a share.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; alex.macdonald@dowjones.com

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