TIDMGLEN
RNS Number : 2800V
Glencore PLC
06 August 2020
NEWS RELEASE
Baar, 6 August 2020
2020 Half-Year Report
Highlights
Glencore's Chief Executive Officer, Ivan Glasenberg,
commented:
"Every aspect of life in 2020 has been impacted by the Covid-19
crisis. Our teams have adapted to these difficult conditions and we
are pleased to announce an overall strong financial performance
from our various businesses, reflecting the countercyclical
earnings power from our large scale Marketing activities, combined
with a cash generative industrial asset base, which quickly adapted
to the changed environment.
Marketing delivered a half-yearly record Adjusted EBIT
performance of $2.0 billion, allowing us to raise full-year
guidance to the top end of our long-term $2.2-3.2 billion range.
There were consistently good contributions across the board,
however oil in particular was able to capitalise on the presence of
exceptional market conditions during the half.
Our Industrial activities faced numerous challenges, but for the
most part were able to continue operating relatively normally. Unit
costs are broadly stable (pre by-product credits), while capex is
under close control. In the current economic environment, difficult
decisions and actions have been considered for moving certain
assets into extended care and maintenance to rebalance markets with
oversupply risk and preserve the resources for a better market
environment. Impairments of $3.2 billion (net of non-controlling
interests and tax) were recognised.
The outlook remains uncertain in the short term. Notwithstanding
our cash-generative business and secure liquidity positions, the
Board has concluded that it would be inappropriate to make a
distribution to shareholders in 2020, instead prioritising the
acceleration of Net debt reduction to within our target range
(<$16 billion), currently expected to occur by the end of
2020.
Over the longer term, our diversified commodity portfolio,
positions us well to play a key role in the next upward economic
cycle, benefiting in particular from the commodities required for
the transition to a low-carbon economy. We remain focussed on
creating sustainable long-term value for all stakeholders."
Change
US$ million H1 2020 H1 2019 % 2019
----------------------------------------- ------------ ----------- ------------ ------------
Key statement of income and cash flows
highlights(1) :
Net (loss)/income attributable to equity
holders (2,600) 226 n.m. (404)
Adjusted EBITDA 4,833 5,582 (13) 11,601
Adjusted EBIT 1,472 2,229 (34) 4,151
(Loss)/earnings per share (Basic) (US$) (0.20) 0.02 n.m. (0.03)
Funds from operations (FFO)(2) 3,686 3,516 5 7,865
Cash generated by operating activities
before working capital changes 4,317 5,409 (20) 10,346
Net purchase and sale of property, plant
and equipment(2) 1,700 2,193 (22) 4,966
Change
US$ million 30.06.2020 31.12.2019 %
----------------------------------- ----------- ----------- ------------
Key financial position highlights:
Total assets 111,952 124,076 (10)
Net funding(2,3) 36,361 34,366 6
Net debt(2,3) 19,695 17,556 12
----------------------------------- ----------- ----------- ------------
Ratios:
FFO to Net debt(2,3,4) 40.8% 44.8% (9)
Net debt to Adjusted EBITDA(3,4) 1.81 1.51 20
1 Refer to basis of presentation on page 5.
2 Refer to page 9.
3 Includes $938 million (2019: $607 million) of Marketing
related lease liabilities, excluding which, Net debt increased 11%
period on period.
4 H1 2020 ratios based on last 12 months' FFO and Adjusted
EBITDA, refer to APMs section for reconciliation.
Adjusted measures referred to as Alternative performance
measures (APMs) which are not defined or specified under the
requirements of International Financial Reporting Standards; refer
to APMs section on page 69 for definition and reconciliations and
to note 3 of the financial statements for reconciliation of
Adjusted EBIT/EBITDA.
H1 Marketing Adjusted EBIT of $2.0 billion; full year
expectation revised to the top end of our long-term range
- Marketing Adjusted EBIT of $2.0 billion (H1 2019: $1.0
billion) reflected oil, in particular, benefiting from the volatile
and structurally supportive marketing environment. Metals also
contributed significantly, reflecting the relatively quick economic
recovery in China
- Full year Adjusted EBIT guidance now expected at the top end
of our long-term $2.2-3.2 billion range
Industrial Adjusted EBITDA, a solid $2.6 billion in a
challenging operating environment
- Metals $2.2 billion (down 16%) and Energy $0.7 billion (down
65%). The majority of our assets operated relatively normally
through the half-year, with the Energy assets disproportionately
impacted by lower coal prices
- H1 unit costs were: Copper 109c/lb, zinc 28c/lb (64c/lb
ex-gold), nickel (ex Koniambo) 230c/lb and thermal coal $46/t
- Full year estimated unit costs: Copper 106c/lb, zinc 5c/lb
(48c/lb ex-gold), nickel (ex Koniambo) 257c/lb and thermal coal
$46/t
- Current industrial metals' prices are substantially higher
than H1 2020's averages; augurs well for an improved Metals'
Industrial performance in H2
- H1 Industrial capex was $1.8 billion (H1 2019: $2.3 billion);
full year expected around $4.0 billion (previous range of
$4.0-4.5 billion)
Net loss attributable to equity holders of $2.6 billion
- Net loss includes impairments attributable to equity holders
of $3.2 billion recognised during the period as a result of lower
commodity prices related to the economic uncertainty arising from
the Covid-19 pandemic (notably thermal coal, oil and zinc) and / or
technical reassessments resulting in reduced life of mine or
longer-term project realisation expectations
- Total comprehensive loss attributable to equity holders of
$4.2 billion (2019: income of $0.4 billion) includes exchange
losses on translation of foreign operations and negative
mark-to-market movements on investments held at fair value
Net debt of $19.7 billion (including $0.9 billion of
Marketing-related lease liabilities)
- Net debt to Adjusted EBITDA ratio of 1.81 times is within our <2x cap.
- Net debt currently above the upper end of our $10-$16 billion
target range; given current healthy levels of operating cash flow
before working capital changes, expect Net debt to be inside our
target range by end of 2020 and down from the start of the year
- Available committed liquidity of $10.2 billion at 30 June 2020
(31 December 2019: $10.1 billion)
To view the full report please click
https://www.glencore.com/dam/jcr:50ad1802-2213-43d8-8008-5fe84e3c65ed/GLEN-2020-Half-Year-Report.pdf
For further information please contact:
Investors
Martin Fewings t: +41 41 709 m: +41 79 737 martin.fewings@glencore.com
Maartje Collignon 2880 5642 maartje.collignon@glencore.com
t: +41 41 709 m: +41 79 197
3269 4202
Media
Charles Watenphul t: +41 41 709 m: +41 79 904 charles.watenphul@glencore.com
2462 3320
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 60 responsibly-sourced commodities that advance everyday
life. The Group's operations comprise around 150 mining and
metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established
and emerging regions for natural resources, Glencore's industrial
activities are supported by a global network of more than 30
marketing offices.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and
oil sectors. We also provide financing, logistics and other
services to producers and consumers of commodities. Glencore's
companies employ around 160,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
Important notice concerning this document including forward
looking statements
This document contains statements that are, or may be deemed to
be, "forward looking statements" which are prospective in nature.
These forward looking statements may be identified by the use of
forward looking terminology, or the negative thereof such as
"outlook", "plans", "expects" or "does not expect", "is expected",
"continues", "assumes", "is subject to", "budget", "scheduled",
"estimates", "aims", "forecasts", "risks", "intends", "positioned",
"predicts", "anticipates" or "does not anticipate", or "believes",
or variations of such words or comparable terminology and phrases
or statements that certain actions, events or results "may",
"could", "should", "shall", "would", "might" or "will" be taken,
occur or be achieved. Forward-looking statements are not based on
historical facts, but rather on current predictions, expectations,
beliefs, opinions, plans, objectives, goals, intentions and
projections about future events, results of operations, prospects,
financial condition and discussions of strategy.
By their nature, forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond
Glencore's control. Forward looking statements are not guarantees
of future performance and may and often do differ materially from
actual results. Important factors that could cause these
uncertainties include, but are not limited to, those disclosed in
the last published annual report and half-year report, both of
which are freely available on Glencore's website.
For example, our future revenues from our assets, projects or
mines will be based, in part, on the market price of the commodity
products produced, which may vary significantly from current
levels. These may materially affect the timing and feasibility of
particular developments. Other factors include (without limitation)
the ability to produce and transport products profitably, demand
for our products, changes to the assumptions regarding the
recoverable value of our tangible and intangible assets, the effect
of foreign currency exchange rates on market prices and operating
costs, and actions by governmental authorities, such as changes in
taxation or regulation, and political uncertainty.
Neither Glencore nor any of its associates or directors,
officers or advisers, provides any representation, assurance or
guarantee that the occurrence of the events expressed or implied in
any forward-looking statements in this document will actually
occur. You are cautioned not to place undue reliance on these
forward-looking statements which only speak as of the date of this
document.
Except as required by applicable regulations or by law, Glencore
is not under any obligation and Glencore and its affiliates
expressly disclaim any intention, obligation or undertaking, to
update or revise any forward looking statements, whether as a
result of new information, future events or otherwise. This
document shall not, under any circumstances, create any implication
that there has been no change in the business or affairs of
Glencore since the date of this document or that the information
contained herein is correct as at any time subsequent to its
date.
No statement in this document is intended as a profit forecast
or a profit estimate and past performance cannot be relied on as a
guide to future performance. This document does not constitute or
form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for any
securities.
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
also used to refer collectively to members of the Group or to those
who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or
companies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SSLFIIESSEIA
(END) Dow Jones Newswires
August 06, 2020 02:00 ET (06:00 GMT)
Innofactor Oyj (LSE:0IVW)
Historical Stock Chart
From Apr 2024 to May 2024
Innofactor Oyj (LSE:0IVW)
Historical Stock Chart
From May 2023 to May 2024