Table of Contents
Key Points:
- Glencore’s H1 2024 revenue rose 9.01% to $117.1 billion, reflecting strong performance in marketing and metals.
- The company’s adjusted EBITDA fell to $6.3 billion due to declining coal prices, resulting in a $233-million net loss.
- Glencore plans $6.1 billion in annual free cash flow, with potential top-up shareholder distributions in February 2025.
Glencore Plc, the Swiss multinational commodity trading and mining company led by South African executive Gary Nagle, reported a significant revenue increase for the first half of the 2024 fiscal year. Its revenue surged 9.01 percent year-on-year, reaching $117.1 billion, demonstrating the resilience of its operations despite a turbulent market environment.
Revenue growth driven by marketing and metals
The revenue boost was primarily driven by strong performance in Glencore’s marketing and metals operations. However, the company faced a substantial decline in coal prices, which contributed to a 33-percent drop in adjusted EBITDA, reducing it to $6.3 billion. Despite this setback, Glencore reported a net loss of $233 million but managed to generate robust cash flow, which enabled it to reduce net debt by $1.3 billion to $4.9 billion.
Glencore’s liquidity remains solid, with $16.6 billion committed following $2.9 billion in capital expenditures. The company returned $1 billion to shareholders and has annual bond maturities capped at $3 billion. CEO Gary Nagle underscored Glencore’s commitment to operating safely and ethically while striving to create long-term value for stakeholders amidst ongoing macroeconomic uncertainties.
Gary Nagle’s stake and Glencore’s evolution
Founded in the 1970s as a trading company, Glencore has evolved into a major player in the global commodities market, ranking among the world’s largest mining groups by revenue. Nagle, who holds a 0.016-percent stake in the company, valued at nearly $10 million, continues to play a significant role in Glencore’s success.
Looking ahead, Glencore anticipates generating approximately $6.1 billion in free cash flow annually. The company expects this strong cash flow to enhance shareholder returns, with potential top-up distributions projected for February 2025, contingent upon favorable market conditions and successful deleveraging efforts.
