Glencore reported a strong operational performance for 2024, with production remaining within guidance and copper equivalent volumes increasing by approximately four per cent year over year.
However, Glencore’s financial results reflected the impact of lower energy coal prices, with adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) declining by 16 per cent to $14.4 billion.
“Our industrial assets delivered full-year production numbers within their original guidance ranges, which together with the addition of EVR’s steelmaking coal volumes from July 2024, resulted in a four per cent growth in copper equivalent volumes year over year,” Glencore chief executive officer Gary Neagle said.
“Aided by the healthy cash generation, along with $1.8 billion of net working capital inflows, we were able to fund $6.7 billion of net capex, the $7 billion acquisition of EVR and $1.9 billion of shareholder returns, all while limiting the increase in year-end net debt to $11.2 billion, vs $4.9 billion in 2023.”
The company’s funds from operations increased by 11 per cent to $10.5 billion, driven by strong performance in its marketing business.
Despite the decline in coal prices, Glencore’s diversified business model has allowed it to maintain financial stability. The company’s market adjusted EBIT reached $3.2 billion, at the top end of its long-term guidance range.
“We are pleased to announce $2.2 billion ($0.182 per share) of shareholder returns in accordance with our capital allocation framework,” Nagle said.
“We are recommending a $0.10 per share ($1.2 billion) base cash distribution, together with a ‘top-up’ buyback of $1.0 billion ($0.082 per share).”
Looking ahead, Glencore remains optimistic about its future growth, forecasting a four per cent compound annual growth rate in copper equivalent production through to 2028.
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