15th Feb 2023 08:52
(Alliance News) - Glencore PLC on Wednesday reported record profit in 2022 and boosted dividend following robust marketing and industrial businesses, which benefited from buoyant energy markets.
The Anglo-Swiss commodity trading and mining company said pretax profit surged to USD22.88 billion in 2022 from USD7.38 billion in 2021.
Over this period, net income soared to USD17.32 billion from USD4.97 billion, thanks to significant items reflected in various impairments and a gain on the acquisition of the Cerrejon coal mine joint venture in Colombia.
The "unprecedented developments" in global energy markets were material drivers for both its marketing and industrial businesses, lifting adjusted earnings before interest, taxes, depreciation and amortisation to USD34.10 billion, up 60% from USD21.32 billion. In 2020, Ebitda was USD11.6 billion.
"The global pandemic, recovery from it and years of underinvestment, followed by conflict in Europe, exposed pre-existing vulnerabilities in energy security and supply chains, underpinning the generally high and volatile 2022 commodity price environment, which enabled the group to generate record profitability for the year," said Glencore Chief Executive Gary Nagle.
Over 12 months, revenue rose by 26% to USD255.98 billion from USD203.75 billion.
Glencore declared a dividend of USD0.40, up 54% from USD0.26 following strong earnings.
Basic earnings per share multiplied to USD1.33 from USD0.38.
In its outlook, Glencore said China's reopening and a continued global focus on energy security, and decarbonisation and electrification, meant that demand for many of its commodities is likely to remain healthy, while supply constraints persisted and inventories remained relatively low.
But Nagle warned that high inflation rates and associated tighter monetary conditions presented some risk to the economic outlook in 2023.
Shares in Glencore were down 1.1% to ZAR110.98 on Wednesday morning in Johannesburg. In London, they lost 0.3% to 514.41 pence.
By Artwell Dlamini, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Glencore