RE: Sp21 Feb 2024 08:40
With the decl8ne in worldwide coal prices the profit number was always going to fall, given Glen makes so much from that particular side of its operation.
What is more telling to me, and a very clear indicator, is that total revenue only declined 15% - despite the coal selling price heavy dropping, as well as the general world slowdown thats hit so many other companies by far far more than 15%.
The revenue coming into the cash till is proving rather resilient, Glens customers are clearly not going elsewhere - and with them producing, selling, mining and trading a large varied basket of life and the worlds essentials this situation wont change. during slower periods in the world (like we are clearly in now) Glen will just tick along, making the odd $4.8 billion in profits, until the next cycle rolls along and those profits return in the same numbers as last year - which by the way was a record year.
Glen is dominant in its markets, and importantly cyclical in nature, not some here today gone tomorrow fast fashion or latest fad stock, it runs on the worlds economic sentiment, currently not positive, yes, but is retaining its market share, investing long term for the future when world outlooks are happier, making substantial profits and selling what we all need - all in the world currenct economic dip.
The headline sp doesnt tell the real story, im afraid thats not visible to some.