Glencore PLC  

Glencore PLC (LSE: GLEN) is an FTSE 100 index-listed diversified natural resource entity. The key operations are in central Europe, Russia, North America, and South Africa.

FY24 Preliminary Results (Released on 19 February 2025)

1. Financial Performance Amid Market Challenges : Glencore reported Adjusted EBITDA of $14.4 billion, down 16% YoY due to lower energy coal prices, but Funds from Operations (FFO) rose 11% to $10.5 billion, highlighting strong cash generation despite market headwinds.
2. Resilient Marketing & Industrial Segments: Marketing Adjusted EBIT reached $3.2 billion, at the upper end of guidance, despite an 8% YoY decline as Metals & Minerals offset the normalization of energy markets. Industrial Adjusted EBITDA fell 20% to $10.6 billion, impacted by lower energy coal prices, but was partially offset by EVR’s steelmaking coal business and higher zinc earnings.
3. Capital Allocation & Shareholder Returns: Glencore funded $6.7 billion in capex, completed the $7 billion EVR acquisition, and returned $1.9 billion to shareholders, while keeping net debt at $11.2 billion. Shareholder returns totaled $2.2 billion, including a $0.10 per share distribution and a $1 billion buyback.
4. Liquidity & Balance Sheet Management: With $11.5 billion in committed liquidity and a net debt to Adjusted EBITDA ratio of 0.78x, Glencore maintains strong financial flexibility. Net funding increased to $36.4 billion, but bond maturities remain capped at $3 billion per year.
5. Strategic Asset Disposal for Financial Strength: Glencore agreed to sell its Viterra stake, receiving $1 billion in cash and 32.8 million Bunge shares (~15%), pending regulatory approval, further strengthening its balance sheet.
6. Significant Growth in Steelmaking Coal Production: Steelmaking coal output jumped 165% YoY to 19.9Mt, driven by 12.5Mt from EVR, showcasing successful integration and production scalability.
7. Resilient H2 Zinc & Copper Production: Despite copper production declining 6% YoY to 951.6kt, H2 saw a 6% increase, driven by higher grades at KCC, improved Mutanda output, and Mount Isa’s recovery. Zinc rose 17% in H2, with strong contributions from Kazzinc, Mount Isa, and Antamina, highlighting Glencore’s operational recovery.

Share Price Chart

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Glencore PLC (LSE: GLEN) was trading at the current market price of GBX 324.60 (as of 24 February 2025, 09:35 AM GMT)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 24 February 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.