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Glencore Announces 2020 Half-Year Report

Mining News - Published on Fri, 07 Aug 2020

Image Source: Glencore
Glencore’s Chief Executive Officer, Ivan Glasenberg, said “Every aspect of life in 2020 has been impacted by the Covid-19 crisis. Our teams have adapted to these difficult conditions and we are pleased to announce an overall strong financial performance from our various businesses, reflecting the countercyclical earnings power from our large scale Marketing activities, combined with a cash generative industrial asset base, which quickly adapted to the changed environment. Marketing delivered a half-yearly record Adjusted EBIT performance of USD 2.0 billion, allowing us to raise full-year guidance to the top end of our long-term USD 2.2-3.2 billion range. There were consistently good contributions across the board, however oil in particular was able to capitalise on the presence of exceptional market conditions during the half.The outlook remains uncertain in the short term. Notwithstanding our cash-generative business and secure liquidity positions, the Board has concluded that it would be inappropriate to make a distribution to shareholders in 2020, instead prioritising the acceleration of Net debt reduction to within our target range USD 16 billion, currently expected to occur by the end of 2020. Over the longer term, our diversified commodity portfolio, positions us well to play a key role in the next upward economic cycle, benefiting in particular from the commodities required for the transition to a low-carbon economy. We remain focussed on creating sustainable long-term value for all stakeholders.”

US$ millionH1 2020H1 2019YoY
Net (loss)/income attributable to equity holders-2,600226NM
Adjusted EBITDA?4,8335,582-13%
Adjusted EBIT?1,4722,229-34%
(Loss)/earnings per share (Basic) (US$)-0.200.02NM
Funds from operations (FFO)2?3,6863,5165%
Cash generated by operating activities before working capital changes4,3175,409-20%
Net purchase and sale of property, plant and equipment2?1,7002,193-22%


Marketing Adjusted EBIT of $2.0 billion (H1 2019: $1.0 billion) reflected oil, in particular, benefiting from the volatile and structurally supportive marketing environment. Metals also contributed significantly, reflecting the relatively quick economic recovery in China

Net loss attributable to equity holders of $2.6 billion

Net loss includes impairments attributable to equity holders of $3.2 billion recognised during the period as a result of lower commodity prices related to the economic uncertainty arising from the Covid-19 pandemic (notably thermal coal, oil and zinc) and / or technical reassessments resulting in reduced life of mine or longer-term project realisation expectations

Total comprehensive loss attributable to equity holders of $4.2 billion (2019: income of $0.4 billion) includes exchange losses on translation of foreign operations and negative mark-to-market movements on investments held at fair value

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Posted By : Yogender Pancholi on Fri, 07 Aug 2020
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