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Glencore's Chief Executive Officer, Ivan Glasenberg, commented: "The strength of our diversified business model and commodity mix is once again demonstrated with a 13% increase in net income and a 23% increase in Adjusted EBITDA to $8.3 billion.
"Against a volatile but favourable trading and commodity price environment, Marketing performed towards the upper end of its guidance range with a 12% increase in Adjusted EBIT to $1.5 billion. Our Industrial business recorded Adjusted EBITDA of $6.7 billion, up 26%, reflecting the highly competitive cost positions of our asset base.
"Cash generation remains strong, with FFO up 8% to $5.6 billion and our balance sheet healthy, with Net debt of $9 billion. In addition to the $2.85 billion of shareholder distributions announced earlier this year, we recently announced a $1 billion buy-back programme.
"While broader market conditions are likely to remain volatile, confidence in our business prospects and current share trading levels point to near-term focus on deleveraging and shareholder returns / buybacks funded through cash generation. We remain focused on creating value for shareholders through the disciplined allocation of long-term capital."
|US$ million||H1 2018||H1 2017||Change %||2017|
|Key statement of income and cash flows highlights1:|
|Net income attributable to equity holders||2,776||2,450||13||5,777|
|Earnings per share (Basic) (US$)||0.19||0.17||12||0.41|
|Funds from operations (FFO)2◊||5,625||5,201||8||11,556|
|Net cash generated by operating activities before working capital changes||6,805||5,599||22||11,866|
|US$ million||30.06.2018||31.12.2017||Change %|
|Key financial position highlights:|
|FFO to Net debt2,3◊||133.2%||108.3%|
|Net debt to Adjusted EBITDA3◊||0.55x||0.72x|
1 Refer to basis of preparation on page 5.
2 Refer to page 9.
3 H1 2018 and H1 2017 ratio based on last 12 months' FFO and Adjusted EBITDA, refer to APMs section for reconciliation.
◊ Adjusted measures referred to as Alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards; refer to APMs section on page 72 for definition and reconciliations and note 3 of the financial statements for reconciliation of Adjusted EBIT/EBITDA and capital expenditure.
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