Wrap Text
GLN - Preliminary Results 2017
Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
Baar, Switzerland
21 February, 2018
Preliminary Results 2017
Highlights
Glencore’s Chief Executive Officer, Ivan Glasenberg, commented: “Our performance in 2017 was
our strongest on record, driven by our leading Marketing and Industrial asset businesses.
“Marketing Adjusted EBIT exceeded $3 billion for the first time since 2008 and Industrial
Adjusted EBITDA rose 60% to $11.5 billion. The benefit of higher commodity prices combined
with a continued strong unit cost performance is reflected in enhanced mining margins within
our metals and energy operations.
“Our strong cash flow generation is reflected in a 49% increase in funds from operations to $11.6
billion, while our balance sheet is conservatively positioned with net debt of $10.7 billon. We have
recommended a 2018 distribution of $2.9 billion or $0.20/share, to be paid in two equal
payments.
“We look to the future with confidence. We believe our unrivalled positioning in “Tier 1”
commodities and “Tier 1” assets will continue to create compelling value for all stakeholders.”
US$ million 2017 2016 Change %
Key statement of income and cash flows highlights1:
Net income attributable to equity holders 5,777 1,379 319
Adjusted EBITDA ? 14,762 10,268 44
Adjusted EBIT? 8,552 3,930 118
Earnings per share (Basic) (US$) 0.41 0.10 310
Funds from operations (FFO)?2 11,556 7,770 49
Net cash generated by operating activities before working capital changes 11,866 7,868 51
Capital expenditure? 4,234 3,497 21
US$ million 31.12.2017 31.12.2016 Change %
Key financial position highlights:
Total assets 135,593 124,600 9
Net funding?2 32,898 32,619 1
Net debt?2 10,673 15,526 (31)
Ratios:
FFO to Net debt?2 108.3% 50.0% 119
Net debt to Adjusted EBITDA? 0.72x 1.51x (52)
1 Refer to basis of preparation on page 7 of the Preliminary Results 2017
2 Refer to page 10 of the Preliminary Results 2017
# Adjusted measures referred to as Alternative performance measures (“APMs”) which are not defined or specified under the
requirements of International Financial Reporting Standards; refer to APMs section on page 118 for definition and reconciliations and
note 2 of the financial statements for reconciliation of Adjusted EBIT/EBITDA and capital expenditure.
- Strong 2017 financial performance
- Adjusted EBITDA of $14.8 billion, up 44%; Adjusted EBIT of $8.6 billion
- Net income attributable to equity holders of $5.8 billion
- Funds from operations of $11.6 billion, up 49%
- Recommended 2018 distributions of $2.9 billion ($0.20 per share), comfortably above
the minimum $1 billion plus 25% of Industrial cash flows per company policy
- Marketing delivers again
- Marketing Adjusted EBIT of $3 billion, up 3% (up 10% like for like)
- Strong performances by Metals and minerals and Energy products segments, up 28%
and 9% respectively
- Broadly consistent like-for-like contribution from Agricultural products in difficult market
conditions
- Another strong unit cost/margin performance has boosted our Industrial earnings
- Industrial Adjusted EBITDA up 60% to $11.5 billion
- Mine cash costs/margins generally better year on year: Cu:86c/lb, Zinc: -16c/lb (10c/lb
ex Au), Ni:191c/lb, Coal:$32/t margin
- Some emerging inflationary pressures and FX impacts more than offset by higher by-
product credits
- Conviction to create value through partnerships, M&A and organic reinvestment
- Conservative financial policy underpins balance sheet strength and flexibility: Net
debt of $10.7 billion within our $10 - $16 billion target range
- $1.6 billion invested in capital efficient growth (Volcan, Mutanda) offset by $1.0 billion
of capital recycling through disposals (Trevali, HG Storage, BaseCore)
- HVO and Chevron South Africa announced in 2017, pending closure in 2018, subject
to customary regulatory approvals
- 2017 expansionary capex of $1 billion, total industrial capex of $4 billion
- Creating sustainable long-term returns for shareholders
- The potential of synchronised global economic growth, emerging inflation, supportive
commodity fundamentals and the emerging electric vehicle story suggest a positive
outlook for commodities
- We believe the value of our unrivalled positioning and “Tier 1” asset and commodity
diversification can create superior long-term value for all stakeholders
To view the full report please click here:
http://www.glencore.com/assets/investors/doc/reports_and_results/2017/GLEN-2017-Preliminary-
Results-final.pdf
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Ash Lazenby t: +41 41 709 2714 m: +41 79 543 3804 ash.lazenby@glencore.com
Media
Charles Watenphul t: +41 41 709 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major
producer and marketer of more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources,
Glencore's industrial and marketing activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power
generation, oil and food processing sectors. We also provide financing, logistics and other
services to producers and consumers of commodities. Glencore's companies employ around
146,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights
and the International Council on Mining and Metals. We are an active participant in the
Extractive Industries Transparency Initiative.
Follow us on social media:
www.facebook.com/Glencore
www.flickr.com/photos/glencore
www.instagram.com/glencoreplc
www.linkedin.com/company/8518
www.slideshare.net/glencore
www.twitter.com/glencore
www.youtube.com/glencorevideos
Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In
this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to
Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not
imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer
collectively to members of the Group or to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank Division)
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