Glencore ends a volatile first half with strong profit growth
Debt came down better than expected, and the miner — which returned more than $3bn to investors — plans to fund future returns to shareholders from cash
Glencore grew its interim revenue by 8% to $108.6bn and its after-tax profit by 15% to $2.6bn in the six months to end-June. CEO Ivan Glasenberg attributed the strong earnings growth to the resources group’s diversified business model and commodity mix. Wednesday morning’s interim results statement did not include an interim dividend declaration. This was expected as Glencore announced a $2.85bn distribution to shareholders in February, half of which has been paid with the other half to be paid in September. Rather than paying additional dividends, Glencore has opted for a $1bn share buyback programme. Glencore is the last of the major miners to report its half-year earnings for 2018. “Cash generation remains strong, with funds from operations up 8% to $5.6bn and our balance sheet healthy, with net debt of $9bn,” Glasenberg said. Net debt came in better than expected, down 16% from $10.6bn reported in mid-2017. Earnings per share grew to $0.19 from $0.17. Industrial assets and the m...
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