Glencore to Pay $4.5 Billion of Top-Up Shareholder Returns After 1st Half Profit Soared -- Update
August 04 2022 - 3:26AM
Dow Jones News
By Jaime Llinares Taboada
Glencore PLC on Thursday reported a significantly improved
profit for the first half of the year and said that it will pay
$4.5 billion in "top-up" shareholder returns.
The multinational commodity mining and trading group made a net
profit of $12.09 billion for the six months ended June 30, up from
$1.28 billion a year earlier, mainly reflecting the performance of
its coal business.
Adjusted earnings before interest, taxes, depreciation and
amortization more than doubled to $18.92 billion, beating the
market consensus of $18.76 billion--provided by Visible Alpha and
averaged from eight brokers.
"Global macroeconomic and geopolitical events during the half
created extraordinary energy market dislocation, volatility, risk,
and supply disruption, resulting in record pricing for many coal
and gas benchmarks and physical premia," Chief Executive Gary Nagle
said.
The mining division generated adjusted Ebitda of $15.03 billion,
mainly reflecting higher coal prices and the acquisition of an
additional stake in the Cerrejon coal mine in Colombia in
January.
However, the company said the operational performance of some of
its mining assets was disappointing due to weather, geological and
logistics challenges and the coronavirus affecting staffing. "We
are confident, however, in being able to deliver an overall
improved production performance in the second half," Glencore
said.
The trading division more than doubled its adjusted EBIT to $3.7
billion amid extreme market dislocations and price movements, and
Glencore expects more normal conditions for this business in the
second half.
The company said net working capital increased significantly in
the first half, with its trading business accounting for around $5
billion of net working capital investment. Still, Glencore said it
was able to generate significant cash in the period, reducing net
debt to $2.31 billion as at June 30.
This debt reduction allowed the group to declare "top-up"
shareholder returns of $4.5 billion. This includes a special
distribution of $1.45 billion, or $0.11 a share, and a new share
buyback of $3.0 billion, or $0.23 a share. This lifts total 2022
shareholder returns to around $8.5 billion, it said.
Looking ahead, Glencore said energy prices are set to remain
high in the second half, while the outlook for metals is more
complex.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
August 04, 2022 03:11 ET (07:11 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Glencore (PK) (USOTC:GLNCY)
Historical Stock Chart
From Apr 2024 to May 2024
Glencore (PK) (USOTC:GLNCY)
Historical Stock Chart
From May 2023 to May 2024