BERLIN, Germany — COMMODITIES trader Glencore’s net earnings fell 75 per cent last year due to weaker sales prices and charges related to its holding in Russian alumnum maker UC Rusal, the company said yesterday, as it prepares to merge with mining company Xstrata PLC.

Glencore reported full-year profit of US$1 billion, down from the 2011 figure of US$4.05 billion. It said one-time expenses came in at US$1.21 billion, up from US$511 million the previous year, due largely to impairment costs on its holding in Rusal. The company also booked a US$128-million loss on disposal of investments after gaining US$9 million the previous year.

Revenue was up 15 per cent to US$214.4 billion from US$186.2 billion a year earlier, due primarily to higher oil volumes.

The Swiss-based company supplies raw materials such as oil, copper and wheat and owns plants, warehouses and mines.

Glencore and Xstrata, the world’s biggest exporter of thermal coal which also produces copper, nickel and zinc, agreed last year on a merger that would create an industry giant.

Glencore said yesterday that the so-called long stop date by which the merger, which still needs Chinese regulatory approval, has to be completed has been extended to April 16 from March 15. CEO Ivan Glasenberg said that the merged company will “incorporate the best of both businesses and plans to this effect are well advanced”.

Glasenberg noted in the company’s report that 2012 was “a relatively lacklustre year” for commodities, with average prices down 10 to 20 per cent. However, he pointed to “signs of underlying economic improvement” in the US and progress in China, including a smooth leadership transition, as hopeful signs.

The company is proposing a five per cent rise in its annual dividend to US$0.1575, “reflecting our confidence in our business and the continued ramp-up of our brownfield industrial assets,” Glasenberg wrote.