Glencore: Holding steady, despite headwinds
Despite a good performance and strong cash flows, Glencore’s market value remains out of kilter with those of its peers
Despite a good performance and strong cash flows, Glencore’s market value remains out of kilter with those of its peers, a continuation of a trend that started early in 2018 when bad news about the company’s dealings in the Democratic Republic of Congo (DRC) began trickling in.In July, this culminated in a subpoena from US authorities under the Foreign Corrupt Practices Act and antimoney-laundering statutes, relating to Glencore’s dealings in the DRC over the past decade, and in Venezuela and Nigeria.In its interim results for the year ended June 31, the commodities producer and trader reported that net income had increased 13% to $2.5bn and revenue grew 8% to $108.5bn. EPS increased from US17c a share to US19c, and net debt was down 16%.In the absence of opportunities for mergers or acquisitions, Glencore said it would prioritise shareholder returns in the form of dividends and share buybacks. The company declared a dividend in February, valued at $2.9bn, and enacted a $1bn buyback...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.