02:00 Tue 18 Feb 2020
Glencore PLC - Preliminary Results 2019
NEWS RELEASE
Baar,
Preliminary Results 2019
Highlights
Glencore's Chief Executive Officer,
"Our Marketing business finished 2019 on a strong note, generating Adjusted EBIT of
"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
"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
"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."
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US$ million |
2019 |
2018 |
Change % |
Key statement of income and cash flows highlights1: |
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Adjusted EBITDA◊ |
11,601 |
15,767 |
(26) |
Adjusted EBIT◊ |
4,151 |
9,143 |
(55) |
Net (loss)/income attributable to equity holders |
(404) |
3,408 |
(112) |
(Loss)/earnings per share (Basic) (US$) |
(0.03 ) |
0.24 |
(112) |
Funds from operations (FFO)2◊ |
7,865 |
11,595 |
(32) |
Cash generated by operating activities before working capital changes |
10,346 |
13,210 |
(22) |
Net purchase and sale of property, plant and equipment2◊ |
4,966 |
4,899 |
1 |
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US$ million |
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Change % |
Key financial position highlights: |
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Total assets |
124,076 |
128,672 |
(4) |
Net funding2,3◊ |
34,366 |
32,138 |
7 |
Net debt2,3◊ |
17,556 |
14,710 |
19 |
Ratios: |
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FFO to Net debt2◊ |
44.8% |
78.8% |
(43) |
Net debt to Adjusted EBITDA◊ |
1.51 |
0.93 |
62 |
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1 Refer to basis of presentation on page 5.
2 Refer to page 10, also noting that 2019 FFO materially impacted by the lag of income taxes paid in 2019, in respect of 2018 profitability (reduction in balance sheet income tax payable of
3 Adoption of the new lease accounting standard, effective
◊ Adjusted measures referred to as Alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards; refer to APMs section on page 112 for definition and reconciliations, to note 2 of the financial statements for reconciliation of Adjusted EBIT/EBITDA and to page 17 for reconciliations of Mining Margins.
Highlights
continued
Healthy cash generation despite significantly lower commodity prices
- 2019 Adjusted EBITDA of
- Net loss attributable to equity holders of
- Cash generated by operating activities before working capital changes of
- Net capex cash flow of
Solid margin and cost performance for our key commodities
- Impact of lower prices on EBITDA margins somewhat moderated by solid cost control performance in our key commodities: EBITDA mining margin◊ (excluding ramp-up/development assets) of 37% (40% in 2018). Coal EBITDA mining margin of 36% (46% in 2018)
- Full year unit cost performance in our key commodities: copper (ex African copper) 81c/lb, zinc 13c/lb (47c/lb ex-gold), nickel (ex Koniambo) 277c/lb and thermal coal
Marketing underpinned by oil's performance
- Marketing Adjusted EBIT of
Balance sheet / cash flow coverage in good shape
- Available committed liquidity of
- Net debt of
- 2020 focus on reducing Net debt/Adjusted EBITDA ratio closer to 1x and Net debt towards the c.
- Recommended 2020 base distribution of
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For further information please contact:
Investors |
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t: +41 41 709 2880 t: +41 41 709 3269 |
m: +41 79 737 5642 m: +41 79 197 4202 |
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Media |
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t: +41 41 709 2462 |
m: +41 79 904 3320 |
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Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by its global marketing network.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 160,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
Important notice concerning this document including forward looking statements
This document contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as "outlook", "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", "shall", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those disclosed in the last published annual report and half-year report, both of which are freely available on Glencore's website.
For example, our future revenues from our assets, projects or mines will be based, in part, on the market price of the commodity products produced, which may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include (without limitation) the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and actions by governmental authorities, such as changes in taxation or regulation, and political uncertainty.
Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document.
Except as required by applicable regulations or by law, Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.
No statement in this document is intended as a profit forecast or a profit estimate and past performance cannot be relied on as a guide to future performance. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities.
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