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The Markets
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The Markets
by Proactive
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Mining

Glencore slashes payout as profits tumble

Glencore profits dropped by three-quarters in the year just ended as coal and metal prices fell and trading income was also reduced.

Revenues in 2023 were 15% lower than a year ago at US$217bn, while profits from its production arm were down by 52% and in trading by 46%.

In total, net income fell 75% to US$4.3 billion, which included impairment charges for the Mutanda cobalt operation and several zinc properties due to lower price assumptions.

Gary Nagle, chief executive, said dividends would be US$0.13 per share or the lowest or base case of its policy commitment as it builds up its liquidity to absorb EVR.

That equates to shareholder payments in 2023 of US$1.6 billion, down from US$8.5 billion in 2022.

“Against the backdrop of a rebalancing and normalisation of international energy trade flows, our Marketing and Industrial segments posted a lower, albeit healthy, earnings performance in 2023,” Nagle said.

Glencore acquired EVR, the coal business of Canadian group Teck, for US$6.3 billion in November, a deal it expects to complete in the third quarter of 2024

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