Glencore records $1.9 billion net loss in 2020

By Dominic Ellis
Glencore's adjusted EBITDA finished 2020 flat at $11.6 billion while industrial adjusted EBITDA dropped 13% to $7.8 billion, reflecting weaker coal pric...

Glencore recorded a $1.9 bililon net loss and 34% revenue drop in 2020 and adjusted EBITDA finished the year flat at $11.6 billion while industrial adjusted EBITDA dropped 13% to $7.8 billion, primarily reflecting weaker coal prices. 

Chief Executive Officer Ivan Glasenberg said the Covid-19 pandemic is an extraordinary challenge that continues to impact many aspects of daily life, as the company unveiled its 2020 preliminary results.

But he said there was a notable improvement at its Katanga operation in the DRC, where its successful ramp-up lifted Africa copper EBITDA to $712 million from a loss of $349 million in 2019. It finalised the $1.5 billion sale of Mopani, with completion expected in Q2 (click here). 

Strong second half cash flows repositioned Net debt of $15.8 billion "within target range", allowing for the resumption of dividends to shareholders at a recommended $0.12 per share.

"As the world focuses on the pathway to recovery from Covid-19, it is clear that meeting the goals of the Paris Agreement has taken on even greater urgency," he said.

"While innovation and technological advances have transformed how we live and work, the commodities needed to enable this have not. Our commodities are essential in developing all facets of infrastructure needed to deliver the goals of energy and mobility transition. We are focused on playing our part in supporting the Paris goals and have set out a clear strategy to address our total emissions footprint – being Scope 1, 2 and 3 emissions."

Glencore is ready to support the transition to a low-carbon economy and realise its ambition of net-zero by 2050, he added. "We remain focused on creating sustainable long-term value for all stakeholders while operating in a responsible manner across all aspects of our business," he said.

Carlota Garcia-Manas, Senior Responsible Investment Analyst at Royal London Asset Management, welcomed Glencore’s plan to submit its climate action strategy to a shareholder advisory vote and said it marked another big step in the company's transformation. 

"Over the last few years, RLAM has led an investor engagement with Glencore on climate issues, and as active shareholders we have worked with its leadership to bring about change that not only secures long-term value but also meets our shared objectives of an accelerated decarbonisation and a just transition," she said. "Glencore is one of a few companies leading the way and through our investor engagement we expect many more to follow."

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