(Bloomberg) --

Glencore Plc won’t pay its deferred $2.6 billion dividend after the commodities giant poured money into its trading business to cash in on volatile price swings.

The company put the payment on hold earlier this year as it moved to protect itself from potential shocks from the coronavirus pandemic. Glencore has bet heavily on oil by buying and storing the fuel when prices collapsed earlier this year, leading to record gains but also a spike in its debt.

Glencore’s trading business earned $2 billion in earnings before interest and tax, double the returns it made last year, the company reported Thursday. Glencore said last week that full-year trading profit would be at the top end of its range. However, net debt rose to $19.7 billion, well above a target of between $10 billion and $16 billion.

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“The outlook remains uncertain in the short term,” Chief Executive Officer Ivan Glasenberg said in a statement. “Notwithstanding our cash-generative business and secure liquidity positions, the board has concluded that it would be inappropriate to make a distribution to shareholders in 2020.”

The dividend decision comes at a tumultuous time for the company. Glencore is facing ongoing corruption probes in the U.S., Brazil, and the U.K., which have spooked investors and shaken the Switzerland-based company in recent years. At the same time, the world’s biggest commodity trader is preparing for a change of power at the top. Glasenberg has said he’s in the process of looking for a successor and other top managers from the old guard are also being replaced.

Read more: Billionaire Commodity Trader Daniel Mate Retires From Glencore

The record first-half trading profit helped offset the effect of weaker prices for commodities that Glencore mines. Once again, the company has missed out on an iron rally that provided bumper earnings for its biggest rivals, such as Rio Tinto Group and Anglo American Plc, because it doesn’t produce any. Instead, Glencore’s mining profits are driven by coal and copper.

While copper prices have been resilient through the pandemic, thermal coal has crashed, falling to the lowest levels since the commodity crisis five years ago. That contributed to a 13% fall in first-half core earnings.

The company recorded impairments of $5.5 billion, including writedowns on its oil operations in Chad and Zambian copper operations. The collapse in thermal coal prices also prompted Glencore to take more writedowns on its Colombian mines. For the second time this year, the company lowered the value of its Prodeco and Cerrejon assets.

Last week the company announced it was cutting thermal coal output by 14% this year as it sought to protect prices. Glencore has a long tradition of cutting output to support prices, having held back production in commodities such as zinc, coal and cobalt in recent years after prices weakened.

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