Glencore hails ‘extraordinary’ year as earnings top $21bn

Glencore boss Gary Nagle hailed 2021 an “extraordinary” year for the miner today as the group reported an 84 per cent jump in earnings driven by record surges in global commodity prices.

The mining giant posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $21.3 billion for the year, up 84 per cent on 2020 levels.

A global surge in commodities prices amid widespread supply deficits pushed up financial performance for the group and underpinned a 118 per cent jump in Industrial EBITDA to $17.1bn.

Metals contributed $12bn EBITDA, up 65 per cent on 2020, while energy surged 439 per cent to $5.6bn.

Glencore boss Gary Nagle said the group’s performance had driven down debt at the firm to $6bn and would now allow the firm to dish out $4bn to shareholders.

He said: “In spite of the ongoing challenges of Covid-19, 2021 was an extraordinary year for Glencore, reflecting rising demand for our metals and energy products, record Adjusted EBITDA and the transition to new leadership.

“Against the strong commodity backdrop, and leveraging the unique combination of our transition and energy commodities, along with the global reach and scale of our marketing business, the Group delivered an 84% increase in Adjusted EBITDA to $21.3 billion. 

“Marketing delivered another robust performance, with Adjusted EBIT up by 11% to $3.7 billion, while multi-year or record high prices for many of our commodities, underpinned the 118% jump in Industrial Adjusted EBITDA to $17.1 billion. Net income attributable to equity holders was $5.0 billion.

Glencore also revealed today it has set aside $1.5bn to fight a series of probes it is facing from the U.S. Department of Justice, the U.S. Commodity Futures Trading Commission, the UK Serious Fraud Office and the Brazilian Federal Prosecutor’s Office.

The bumper earnings come just weeks after Glencore reported a slowdown in production across its group last year, with slower output at the firm’s copper leading the slump. Glencore sold off its key Ernest Henry copper mine last month for £424.0m.

Activist investor Bluebell has also been pushing for the miner to spin off its high-pollution thermal coal arm, and it yesterday emerged it had laid out a plan for the group to sin off the division while retaining control.