Glencore reports US$1.9bn loss for 2020 despite H2 rebound

Anglo-Swiss resources company Glencore posted a preliminary net loss of US$1.90bn for last year compared with a loss of US$404mn in 2019, despite having swung back to profitability in the second half of the year thanks to a rebound in commodity prices and relaxed lockdowns.

“The H1 2020 reported results were heavily impacted by the low commodity prices and challenging early pandemic environment, against which backdrop, various impairment charges were booked across our portfolio,” Glencore said in a release.

Ebitda was flat compared to 2019 at US$11.6bn, though revenue dropped 34% to US$142bn. Net debt meanwhile, fell 10% to US$15.8bn.

In the case of mining and metals, the firm noted that the early impacts of the COVID-19 pandemic on metal prices were followed by “multi-year highs for base metals,” which translated into a 35% year-on-year Ebitda increase in the segment to US$9.05bn.

In the case of energy, low coal prices and demand disruptions during the first half of the year dragged Ebitda down 42% to US$3.09bn. 

The full press release can be seen here.