(Alliance News) - Glencore PLC on Thursday posted a swing to loss for the first half of 2020 and said it will not pay a dividend but instead focus on reducing its net debt.
Shares in the Swiss-based miner were trading 3.2% lower at 189.98 pence each on Thursday morning in London. In Johannesburg, Glencore shares were down 0.2% at ZAR43.41 each.
Glencore said that for the six months ended June 30, it swung to a net loss of USD2.60 billion from a USD226 million profit last year, as revenue fell to USD70.96 billion from USD107.43 billion. Adjusted earnings before interest, tax, depreciation and amortisation dropped 13% to USD4.83 billion but was ahead of market expectations of USD4.29 billion.
The company booked impairments of GBP3.2 billion as a result of lower commodity prices related to the uncertainty arising from the coronavirus pandemic.
Glencore said it will not pay its deferred dividend, saying the economic outlook is too uncertain due to the coronavirus. The dividend was put on hold earlier this year due to the pandemic. It stated that it would instead focus on reducing its net debt to less than USD16 billion by the end of 2020.
Net debt as at the end of June was USD19.70 billion.
Looking ahead, Chief Executive Ivan Glasenberg said: "The outlook remains uncertain in the short term. Over the longer term, our diversified commodity portfolio, positions us well to play a key role in the next upward economic cycle, benefiting in particular from the commodities required for the transition to a low-carbon economy. We remain focussed on creating sustainable long-term value for all stakeholders."
Available liquidity as at the end of June was GBP10.2 billion.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Glencore (GLEN)
