Glencore PLC (LSE:GLEN) is returning US$4bn to shareholders following an 84% rise in profits for 2021, driven by record high prices for many of its commodities.
The miner posted underlying profits (adjusted EBITDA) of US$21bn for the year to 31 December 2021, compared with US$11.5bn the year before, on revenue up 43% at US$203.7bn.
The strong performance was underpinned by high commodity prices, which led to 118% growth in adjusted EBITDA in the Industrial business to US$17.1bn, including a contribution of US$12bn from Metals, up 65%, and US$5.6bn from Energy, up 439%.
The Marketing business also delivered a robust performance last year, with adjusted EBIT rising 11% to US$3.3bn.
The US$4bn shareholder return comprises a recommended US$3.4bn base distribution, equivalent to US$0.26 per share, and a new buyback programme of US$550mln, equivalent to around US$0.04 per share.
“In spite of the ongoing challenges of COVID-19, 2021 was an extraordinary year for Glencore, reflecting rising demand for our metals and energy products, record adjusted EBITDA and the transition to new leadership,” commented Glencore chief executive officer Gary Nagle.
Net income swung to a profit of US$5.0bn from a loss of US$1.9bn in 2020. The figure included US$1.5bn in provisions set aside to cover costs relating to regulatory investigations in the US, UK and Brazil.
The company said it expects to resolve these investigations in 2022.
The miner said the strong results helped drive its net debt down to US$6bn at end-2021 from US$15.8bn a year earlier.