Glencore announced a $7.1 billion payment to its investors on Wednesday as high oil and coal prices helped it post a record annual profit, but said rising mineral production costs could weigh on companies. future earnings.
In preliminary 2022 results, the miner and trader said it reduced net debt to $75 million by the end of the year from $6 billion at the end of 2021.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) rose 60% to $34.1 billion, pulverizing a previous record of $21.3 billion a year earlier, in line with analyst estimates.
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The executive president of Glencore, Gary Naglestated that the high and volatile commodity price environment, driven by factors such as the pandemic, lack of investment, supply chain vulnerabilities and the conflict in Europe, enabled the record result.
“Glencore is making the most of a disorganized energy market to fill its coffers, and there is good news for shareholders, who are dividing up the spoils”stated matt britzmannanalyst of Hargreaves Lansdown.
The disbursement of US$7.100 million includes the payment of dividends and a repurchase of shares worth US$1.500 million.
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The company bucked the downward trend in profitability at other miners, as its strong commercial profits cushioned rising costs and declining production.
Profits from trading metals and fossil fuels hit a record $6.4bn in 2022, up 73%, though analysts say a repeat of these results is unlikely this year or next.
Source: Reuters
Source: Gestion
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