Glencore results reflect trade uncertainty
(Posted on 18/02/20)
Glencore’s Chief Executive Officer, Ivan Glasenberg, commented: “Our performance in 2019 reflected the prolonged and uncertain trade deal negotiations, generally weaker prices for our key commodities and some operational challenges experienced at our ramp-up/development assets. Adjusted EBITDA declined 26% to $11.6 billion.
“Our Marketing business finished 2019 on a strong note, generating Adjusted EBIT of $2.4 billion, in line with 2018, with an excellent performance from oil and a stronger second half metals’ contribution, helping to offset the cobalt headwinds experienced in the first half.
“In relation to our ramp-up/development assets, performance is steadily improving, in particular at our flagship Katanga operation, which met its second half production targets for both copper and cobalt.
“We are again recommending to shareholders a 2020 base distribution of $0.20 per share, payable in two equal instalments, which is comfortably covered (c.1.5x) by current annualised business free cashflow generation, even applying the presently weakened coronavirus discounted commodity prices.
“We are also pleased to report progress against our commitments to the transition to a low-carbon economy. We are on track to achieve a near doubling of our first GHG target with a reduction in Scope 1 and 2 emissions intensity of c.10% since 2016. Also, in line with our commitment to a Paris consistent strategy, we project a c.30% reduction in absolute Scope 3 emissions by 2035, including natural depletion of our coal and oil resource base over time.
“Looking ahead, in the short-term, we are closely watching coronavirus developments and potential scenario impacts on global growth and markets. As shown over many cycles, our business has various defensive cashflow characteristics, stemming primarily from marketing activities, but also material exposure to precious metals and infrastructure and expected countercyclical working capital inflows. Our priorities for 2020 remain being focused on delivering sustainable long-term returns for all stakeholders, including via delivering a step-change in safety performance, realising the potential of our ramp-up assets, seizing further operational efficiencies, strengthening our balance sheet and managing the transition to Glencore’s next generation of leadership.”
Latest News
Call for strategy to support sustainable production and use of fertilizers
(Posted on 12/09/24)The Strategic Dialogue on the Future of Agriculture has delivered its final report to the European Commission... Read more
Cargill acquires two US feed mills to strengthen production and distribution
(Posted on 08/09/24)To grow with the ag retail and large ranching/ farming segments in the western and central regions of... Read more
ADM and Voltloader expand innovative electric tractor units partnership
(Posted on 08/09/24)ADM has announced a new logistics initiative with the deployment of Voltloader electric tractor units... Read more
Rio Tinto IOC celebrates 70 years in the Labrador Trough
(Posted on 03/09/24)Rio Tinto’s Iron Ore Company of Canada (IOC) is celebrating its 70th anniversary, marking seven... Read more
BHP delivers strong results on back of solid operational performance
(Posted on 27/08/24)BHP has delivered a strong set of results in FY24 on the back of solid operational performance.BHP Chief... Read more
Partnership to support Gladstone’s Boyne Smelters
(Posted on 18/08/24)The Queensland Government in Australia and Rio Tinto will work together to safeguard a pillar of the... Read more
IFA granted consultative status by the IMO
(Posted on 13/08/24)The International Fertilizer Association (IFA) was granted consultative status by the International... Read more
Patchy improvement in UK heavy-side materials markets
(Posted on 13/08/24)New figures from the Mineral Products Association (MPA) show a modest overall improvement in the sales... Read more
United States Senate passes bipartisan WRDA
(Posted on 05/08/24)The National Grain and Feed Association (NGFA) in the USA has commended the Senate for its unanimous... Read more
Preparing for harvest 2024
(Posted on 05/08/24)With what could be one of the wettest winters on record impacting the UK harvest, Associated British... Read more
