Glencore reflects on rising demand for its metals and energy products
In spite of the ongoing challenges of Covid-19, 2021 was an extraordinary year for Glencore, said Gary Nagle, Glencore’s Chief Executive Officer, reflecting rising demand for its metals and energy products, record Adjusted EBITDA and the transition to new leadership.
Against the strong commodity backdrop, and leveraging the unique combination of its transition and energy commodities, along with the global reach and scale of its marketing business, the Group delivered an 84% increase in Adjusted EBITDA to $21.3 billion.
Marketing delivered another robust performance, with Adjusted EBIT up by 11% to $3.7 billion, while multi-year or record high prices for many of our commodities, underpinned the 118% jump in Industrial Adjusted EBITDA to $17.1 billion. Net income attributable to equity holders was $5.0 billion.
Nagle commented: “The significant improvement in the Group’s financial results has driven Net debt down to $6.0 billion, allowing for today’s announcement of $4.0 billion of shareholder returns, comprising a recommended $3.4 billion ($0.26 per share) base distribution (in respect of 2021 cash flows), alongside a $550 million share new buyback (c.$0.04 per share) programme.
“Looking forward, we remain focused on our strategy to enable and deliver decarbonisation and meet the increasing demand for everyday metals, while responsibly meeting the energy needs of today. We look to the future confident that we have the right pathway to succeed in a net zero economy and create sustainable long-term value for all stakeholders, while operating in a responsible manner across all aspects of our business.”
STRONG FINANCIAL PERFORMANCE
- $21.3 billion Adjusted EBITDA, up 84% (y/y), underpinned by robust Marketing and Industrial results
- Net income, pre-significant items: $9.1 billion, up 267%
- Net income attributable to equity holders was $5.0 billion (loss of $1.9 billion in 2020). Significant items principally comprise the required accounting recycling to the income statement of Mopani’s non-controlling interests upon its disposal ($1.0 billion), impairment charges of $1.8 billion, mainly attributable to our Koniambo nickel operation and a $1.5 billion provision raised with respect to the regulatory investigations noted above.
- Net cash purchase and sale of PP&E: $3.8 billion, down 3%
- Shareholder returns of $4.0 billion announced, comprising a proposed $0.26/share ($3.4 billion) base distribution in respect of 2021 cash flows, alongside a new $550 million share buyback program