ZURICH, Switzerland (AFP) — Mining and commodities giant Glencore said yesterday it had bounced back into profit in the first half of the year and the long-term outlook was good as the widespread adoption of electric vehicles would boost demand for raw materials.

Net profit at the Switzerland-based company came in at US$2.4 billion (two billion euros) compared to a loss of US$369 million in the first half of last year on the back of a rebound in commodity prices and efforts by the firm to clean up its balance sheet.

When commodity prices nosedived in 2015, investors turned on Glencore amid concerns that the company’s towering debt, which had hit US$30 billion, could prove unsustainable with the value of its assets in decline.

The company’s losses hit a staggering US$5 billion that year.

Chief executive Ivan Glasenberg, seen as a maverick in the mining world, acted boldly to get debt under control.

He scrapped dividends, sold assets and reined in production in a campaign that has now trimmed debt to US$13.9 billion.

“Our extensive efforts to reposition our balance sheet and drive further industrial asset portfolio improvements over the last 24 months are reflected in our strong first-half financial performance,” Glasenberg said in a statement.

Not only net profit improved, but its measure of operating profits also jumped by over two-thirds to US$6.7 billion.

Glasenberg said the shift towards electric vehicles would be good for Glencore.

“As we look forward, the potential large-scale roll-out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling underlying commodities, including copper, cobalt, zinc and nickel,” said Glasenberg.

US electric carmaker Tesla last month began delivering its Model 3 to customers.

The vehicle is its first mass market vehicle, which it wants to produce at a rate of 10,000 per week by next year.