Glencore Releases Preliminary 2017 Financial Numbers

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Last week, multinational miner Glencore announced its 2017 preliminary earnings results.

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“Our performance in 2017 was our strongest on record, driven by our leading Marketing and Industrial asset businesses,” CEO Ivan Glasenberg said in a release.

Glencore reported an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $14.8 billion, up 44% from 2016.

In Glasenberg’s officer’s review in the full results document, he said the firm benefited from a number of market conditions, including developments in China.

“Concerns of tightening financial conditions in China during the second quarter proved to be short-lived, with commodities rallying once again through the second half of the year,” he wrote. “Strong economic performance in both major developing and developed markets has underpinned supportive commodity demand conditions.”

In addition, supply-side reforms, aimed at tackling pollution throughout the country by scaling back industrial production, “positively affected” commodities like aluminum, zinc and thermal coal, he wrote.

Looking to the future, Glasenberg cited the rise of electric vehicles (EVs) as a major component in the firm’s strategy. Noting global EV investment — a total of $90 billion, he wrote — he argued the firm’s “resource base is well positioned to supply into this likely energy and mobility evolution, particularly given our anticipated strong production growth in copper (25%), nickel (30%) and cobalt (133%)” over the next three years.

The previous calendar year was also a busy one in the world of M&A and partnerships for Glencore.

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Last September, Glencore announced a partnership with Angola LNG Limited for the delivery of LNG cargoes to Glencore facilities around the world.

Earlier in the year, the miner acquired a 49% interest in the Hunter Valley Operations from Yancoal Australia Limited.

In October, Glencore announced it had entered into an agreement to purchase a 75% stake in Chevron South Africa Proprietary Limited and the entire issued share capital of Chevron Botswana Proprietary Limited, for a total consideration of $973 million (subject to adjustment for debt and working debt and working capital of the companies at closing).

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