Navigating from recessionary conditions in the first half to a strong price recovery for most commodities in the second, Chief Executive Officer, Ivan Glasenberg, in its Glencore Preliminary Results 2020, says adjusted EBITDA finished the year flat at $11.6 billion.
An outstanding marketing performance lifted EBIT by 41% to $3.3 billion, while industrial adjusted EBITDA fell 13% to $7.8 billion, primarily reflecting weaker coal prices. A notable improvement was seen at Glencore’s Katanga operation in the DRC, where its successful ramp-up lifted Africa copper EBITDA to $712 million from a loss of $349 million in 2019.
Strong second half cash flows repositioned net debt of $15.8 billion within Glencore’s target range, allowing for the resumption of distributions.
“As the world focuses on the pathway to recovery from Covid-19, it is clear that meeting the goals of the Paris Agreement has taken on even greater urgency. While innovation and technological advances have transformed how we live and work, the commodities needed to enable this have not. Our commodities are essential in developing all facets of infrastructure needed to deliver the goals of energy and mobility transition,” said Ivan Glasenberg.
“We are focused on playing our part in supporting the Paris goals and have set out a clear strategy to address our total emissions footprint – being Scope 1, 2 and 3 emissions.”
Glencore has been transforming the global commodities industry for nearly half a century, growing from a trader of ferrous and non-ferrous metals, minerals and crude oil, into one of the world’s largest natural resource companies.
“Today, the business and its portfolio of commodities is uniquely positioned for the needs of the future. It is ready to support the transition to a low-carbon economy and realise its ambition of net-zero by 2050. We remain focussed on creating sustainable long-term value for all stakeholders while operating in a responsible manner across all aspects of our business,” concluded Ivan Glasenberg.