Glencore Stock Up On Dividend Resumption, Despite Wider FY20 Loss

Shares of Glencore Plc were gaining around 4 percent in London trading after the Anglo-Swiss commodity trading and mining company announced the resumption of dividend, despite reporting a wider net loss in its fiscal 2020 hurt by charges and weak revenues.

Glencore’s Chief Executive Officer Ivan Glasenberg, who is retiring in the first-half of fiscal 2021, said, “Strong second half cash flows repositioned Net debt of $15.8 billion within our target range, allowing for the resumption of distributions. We are recommending to shareholders a distribution of $0.12 per share.”

For fiscal 2020, net loss attributable to equity holders was $1.90 billion, compared to last year’s loss of $404 million. Basic loss per share were $0.14, compared to loss of $0.03 a year ago.

The latest results included significant items mainly non-cash impairment charges amounting to $5.9 billion, higher than last year’s $2.4 billion, primarily in respect of Mopani, Colombian coal and the African oil portfolio.

Net income pre-significant items was $2.5 billion, in line with 2019.

Funds from operations or FFO was $8.33 billion, up 6 percent from prior year’s $7.87 billion.

Adjusted EBIT grew 6 percent from last year to $4.42 billion.

Adjusted EBITDA was $11.56 billion, nearly flat with last year’s $11.60 billion with stronger Marketing and Industrial metals offset by weaker coal prices.

The Marketing activities segment increased its contribution to Group Adjusted EBITDA to 32 percent, compared to 23 percent last year. Marketing Adjusted EBITDA was $3.73 billion, an increase of 42 percent over 2019.

Revenue declined 34 percent to $142.34 billion from last year’s $215.11 billion.

In London, Glencore shares were trading at 292.20 pence, up 3.51 percent.

Source: Read Full Article