Glencore PLC (LON:GLEN) shares gained 4% on Tuesday after the FTSE 100-listed firm reported its strongest-ever full-year performance, with underlying earnings just beating market forecasts.
The miner and commodities trader said its full-year adjusted underlying earnings (EBITDA) was US$14.76bn, above expectations of US$14.67bn, and said its full-year marketing adjusted EBIT was US$3bn.
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In an update in December, Glencore for said its 2017 marketing EBIT would be at the top end of its previous guidance at US$2.8bn.
Glencore’s chief executive Ivan Glasenberg said the performance was the company's "strongest on record, driven by our leading marketing and industrial asset businesses".
He concluded: "We look to the future with confidence.”
The group said it is recommending an aggregate distribution of US$0.20 per share for 208, payable to shareholders in two equal payments, unchanged from the 2017 payout.
In mid-morning trading, Glencore shares were up nearly 4% at 399.65p.
Analyst comment
In a note to clients, analysts at Morgan Stanley repeated an 'equal-weight' rating and 390p price target for Glencore shares.
They noted that Glencore reported a modest miss in 2017 results versus their forecast, but in line with consensus, while current year guidance was increased but is also below their estimates, reflecting lower EBITDA from coal as price discounts seem to be higher.
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