Glencore ups shareholder returns after record earnings
Glencore announced a special dividend and a $650m share buyback as the commodities trader and producer posted record first-half earnings supported by rising prices.
Adjusted earnings before interest, tax, depreciation and amortisation jumped 79% to $8.7bn in the six months to the end of June from a year earlier as revenue rose 32% to $93.8bn.
The FTSE 100 group declared a special dividend of 4 cents a share and said it would buy back $650m shares before the publication of annual results. The $1.15bn package will take planned shareholder returns for 2021 to about $2.8bn.
Glencore said earnings were supported by sharp increases in metals prices and mining margins. Its coal business was hit by weak pricing and volumes earlier in the year but will have a "significantly improved finish" to 2021, Glencore predicted.
The results are the first under the leadership of Gary Nagle, who took over from Ivan Glasenberg at the start of July. Glasenberg built the company into a commodities giant during 19 years as chief executive.
"I am pleased to report strong progress and group performance over the first half of 2021," Nagle said. "Following Covid-19's severe global impacts in early 2020, the subsequent economic recovery has seen prices of most of our commodities surging to multi-year highs amid accelerating demand and lingering supply constraints.
"Fiscal and monetary stimulus, successful vaccine roll-outs and increasing momentum in relation to decarbonisation of energy systems should continue to underpin sector sentiment going forward."