Glencore PLC (LSE:GLEN) attempted to paper over the cracks by increasing its dividend and launching a $1 billion share buyback, as earnings fell for a second straight year in 2024 due to weaker commodity prices.
The FTSE 100-listed miner and commodity trader reported adjusted earnings of $14.36 billion, down 16% from $17.1 billion the previous year, driven primarily by lower industrial coal prices.
CEO Gary Nagle said operationally, the group had performed in line with expectations, while the results matched analysts' forecasts for a subdued year after a record performance in 2023.
Looking ahead, Nagle said: "The strength of our diversified business model across our industrial and marketing businesses, which focus on the commodities needed for today and tomorrow, has proved itself adept in a range of market conditions, giving us a solid foundation to navigate successfully the near-term macroeconomic environment and be well positioned for the future."
Shareholders will receive 18 cents per share, up from 13 cents last year, with a total payout of $2.2 billion. The company’s decision to restart its buyback programme—a year after completing the last one—is seen by analysts as a bid to support its undervalued stock.