31st Mar 2020 14:36
(Alliance News) - Glencore PLC said Tuesday it has deferred its decision on whether to proceed with its cash distribution of USD0.20 per share for 2020, in the face of the Covid-19 pandemic.
The Swiss commodities trader said it would decide the appropriate level of distribution when the company is in a better position to consider the impact of the virus on its operations, economic outlook, and prospects.
Such prospects are anticipated to be released alongside the group's interim results in the third quarter of 2020.
In addition, Glencore has refinanced and extended its revolving credit facilities, with effect on May 22.
The shorter-term facility, which is for 12 months were increased to USD9.98 billion, from USD9.80 billion signed in 2019, with a 12-month extension option.
Meanwhile, the longer term USD4.65 billion revolving credit facility for five years was extended to 2025, with a 12-month extension option.
"As well as prioritising the health and wellbeing of our people, their families and our communities, we are taking a cautious approach to protect our capital structure amid the current period of extreme uncertainty," said Chair Tony Hayward.
"Therefore, notwithstanding that Glencore continues to generate material levels of positive free cash in the current environment, the board considers it prudent to defer the distribution decision. We will review the opportunity for a distribution at our August results, when we will have an improved understanding of Covid-19's impact on our business and its prospects," Hayward added.
Shares in Glencore were up 2.0% at 121.42 pence on Tuesday in London. Its Johannesburg shares were 2.4% higher at ZAR27.30.
By Dayo Laniyan; [email protected]
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