Tue, Mar. 3, 8:45 AM
- The biggest takeaway from Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) latest earnings report was that the miner is continuing to surprise with returns to shareholders despite a challenging commodity price environment.
- Glencore's 9% increase in annual dividend to $0.18/share follows a $1B share buyback program announced last year, of which $930M has been completed; CEO Ivan Glasenberg has said the company will return any excess cash to shareholders if it can’t find a way to generate a better return by reinvesting in the business.
- In the meantime, Glencore’s saving grace is its commodities trading division, where EBIT rose 18% Y/Y to $2.8B, helping offset a 23% drop in EBIT from its industrial activities to $3.9B; the slump in oil prices helped raise trading volumes and profit because future prices became higher than current prices, which led some energy companies to buy oil at current prices.
Tue, Mar. 3, 3:45 AM
- Glencore (OTCPK:GLNCY) posted full-year adjusted net income of $4.29B in 2014 vs. $4.58B a year earlier, beating analyst estimates, as strong performance in the company's marketing division helped it weather a sharp downturn in the commodities market.
- "While there remains the potential for future economic setbacks...physical demand for our raw materials remains healthy," announced CEO Ivan Glasenberg.
- The mining giant's income was heavily dented two years ago, after it took $11.4B in charges related to its merger with Xstrata.
Aug. 20, 2014, 7:52 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) reports H1 adjusted net profit of $2.01B, up 8% Y/Y vs. a restated $1.86B in the first six months of 2013, primarily due to higher production volumes and improved market conditions in grains, copper, zinc and coal.
- The big news is the $1B share buyback, but shares are barely changed in London trading; the buyback plan is "refreshing," says Tony Robson of BMO Capital, but he says the amount is small given the $6.5B obtained from the sale of the Las Bambas copper project in Peru, suggesting the company is keeping back most of the Las Bambas cash for future acquisitions, which should add to growth.
Mar. 4, 2014, 3:46 AM
- Glencore Xstrata's (GLNCY) FY adjusted EBIT climbed 34% to $5.97B, boosted by the inclusion of eight months of Xstrata's profits and a strong performance at the company's commodities trading operations.
- Adjusted net income rose 20% to $3.67B but missed consensus of $3.81B.
- However, Glencore Xstrata swung to an overall net loss of $7.4B from a net profit of $1B in 2012, due to a $7.5B writedown that the company booked on the Xstrata deal. Still, the firm expects to achieve $2.4B of annual synergies from the purchase, up from a prior forecast of $2B.
- Glencore Xstrata is continuing its talks with a Chinese suitor to sell its $5.9B Las Bambas copper asset in Peru. A group led by China Minmetals was reportedly close to a deal last month.
- Glencore Xstrata is selling the asset in order to meet Chinese conditions for approving the Xstrata transaction.
- Glencore increased its full-year dividend 4.8% to 16.5 cents a share.
- Shares are +2.4% in London. (PR)
Aug. 20, 2013, 2:28 AM
- GlencoreXstrata (GLCNF.PK) H1 Pro forma Adjusted EBITDA -9% to $6B, at the higher end of estimates.
- Adjusted EBIT -28% to $3.18B,
- Revenue -2% to $121.4B
- Reported adjusted EBITDA +14% to $3.64B
- Revenue +4% to 112.48B
- Profit before significant items -34% to $1.21B.
- Loss $8.92B vs profit of $2.275B
- Loss per share $0.99 vs EPS of $0.33
- As expected, takes goodwill impairment of $7.6B related to Xstrata acquisition, reflecting the negative mining-industry environment and the heightened risks of greenfield and large scale expansion.
- Declares interim dividend of $0.054 a share, in line with 2012.
- Progress made in integrating Xstrata "has exceeded our expectations," and synergies will "be materially in excess of previous guidance of $500M per annum." (PR)
Mar. 5, 2013, 8:37 AMGlencore (GLCNF.PK) and Xstrata (XSRAF.PK) each reported preliminary 2012 financial results (I, II). Like most of their peers, the companies reported lower earnings and big writedowns amid lower prices for most commodities. At Glencore, its commodity trading business helped offset the price weakness, and its adjusted profit which fell 25% Y/Y beat analysts estimates. (earlier) | Comment!
Aug. 7, 2012, 4:00 AMXstrata (XSRAF.PK) maintains that its $62B merger with Glencore is on track and should close in Q4, although the reiteration comes despite pressure from Xstrata shareholders to improve the deal. Meanwhile, Xstrata's H1 net profit -33% to $1.94B and revenue -7% to $15.55B. Company defers $1B of capital expenditure, joining the likes of of BHP, Rio Tinto and Vale in delaying investment. | Comment!
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Glencore Xstrata is one of the worlds largest global diversified natural resource companies and is one of the ten biggest companies within the FTSE 100 Index. The Groups industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
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