Glencore Plc has announced it will return $ 4 billion to shareholders after announcing record earnings for 2021 due to higher commodity prices.
The Anglo-Swedish commodity mining and trading company said it had a key distribution of $ 3.4 billion, or $ 0.26 per share, in cash flows for 2021 and a $ 550 million share repurchase program.
Glencore announced adjusted EBITDA-record $ 21.32 billion for 2021, higher than $ 11.56 billion in 2020 and slightly higher than market estimates for $ 21.24 billion.
“Following the severe economic impact of the coronavirus in 2020, a recovery in demand, coupled with multiple supply-side issues, led to generally generally declining inventories, while all prices for most of the four commodities reached multi-year highs.” stressed Glencore.
Net income for the year ended at $ 4.97 billion, compared with a loss of $ 1.90 billion a year ago.
Adjusted earnings before taxes and interest from the Marketing unit – Glencore’s name for its trading arm – rose 11% to $ 3.7 billion.
Operating capital more than doubled to $ 17.06 billion and net debt fell 62% year-over-year to $ 6.04 billion.
Source: Capital
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