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Correct. Last year's dividend was 44 cents with a special 8 cent on top of that. Banner year. This year, not so much ugg.
I haven't looked but I have to assume Glencore is way out of the money on all the buybacks. What a waste. Thought we moved past these turbulent ups and downs.
That's not looking too good. I was sure Glencore was going to turn in to a money printing machine with dividends/distributions.
That seems a pretty low dividend for Glencore. At 23.3 cents share, that means they will be returning only around 2.85 billion dollars.
Hmm maybe having spinoff listed on NYSE will prompt GLEN to move there also. Seems like LSE has been losing some big companies to NYSE lately.
That is promising data. Also interesting they may list on NYSE instead of LSE. I wonder if GLEN was on NYSE if that would drum up interest.
If this happens - wonder if it's worth holding the spinoff company shares we will receive or dump them. Need a crystal ball.
They bought back almost the same amount they issued to raise capital during the 2015 debt scare.
From 2015.... "Glencore said on Wednesday it had placed around 1.31 billion new shares, representing 9.99 percent of its share capital, with existing and new shareholders. The sale was priced at 125 pence a share,"
https://www.reuters.com/article/ozabs-uk-glencore-secondaryissues-idAFKCN0RG0P320150916
Treasury shares do not receive a dividend (or return of capital in the case of Glencore).
"In addition to not issuing dividends and not being included in EPS calculations, treasury shares also have no voting rights. " https://www.investopedia.com/terms/t/treasurystock.asp
And down 25% from the recent high.
I think the company is firing on all cylinders and just a victim of the world environment, but it does make me wonder if there is something I am missing.
I do hope the drop is overdone, but stock price reflects the future not the past. So theoretically the market is saying that profit and dividend is not going to happen in the future. And their profit was more than 16B, their EBITDA was 34 billion.
Hope your wrong, but we are rather close to that. One more bad day and uggg.
If these world conditions continue, I fear Glencore will use that as an excuse to trim the already committed 2nd tranche of the dividend. They have cut it in the past. They seem loathe to share the riches with us the owners! Then again, they have basically no debt, so what would they do with their money... build up their war chest for acquisitions?
This is ugly. A very quick drop from the highs, but then again, we had a quick run up to those highs. Once (if?) this messed up world gets kind of sorted, we will rise again.
Longer term, I think this will bounce back. It always seems to rise from the ashes.
I am a bit concerned this seems to be pricing as if there was not a big dividend/return of capital committed by Glencore. Glencore has been known to pull dividends in the past such as the great debt debacle and the onset of the pandemic.
I think the fall is not about today's results but what is to be expected in the near future. Results will be good, but not up to the level seen the last several years.
I am not betting on a special dividend this year like last year. 2023 will likely be a tougher year than last. Happy with earnings today though. Market seems to think 2023 will be rougher for Glencore thus the fall in share price. But in this crazy world (looking at you China and Russia) anything can happen in the up and down commodity world.
To be exact, the number of shares according to the regulatory filing posted yesterday (it was regarding the share buyback) is 12,688,978,207
Lately, each day of buy backs removes 4,500,000 shares from that number.
They are making tons of cash with their mining division. Coal as of late has been particularly profiting.
Their trading arm is making a killing too, but pales in comparison to the mining profits.
That is how they are paying off debt/dividends/buybacks.
Appreciate your posts here clearing some of the confusion that is often posted here, like the posts conflating net debt with net funding. They did a tremendous job lowering their debt from where they were years ago.
The net funding stuff is collateralized loans for the trading business and is backed by the actual commodities they are trading.
5.5?? I am just hoping we can get to a place where we stay above 5. We have been unable to maintain a price above 5 for any prolonged period.