Glencore posts sharp drop in 1H profits but upbeat on shareholder returns

(Sharecast News) - Glencore posted a sharp decline in operating and net profits at the half-year stage, but sounded an optimistic note on the outlook for shareholder returns. The natural resource outfit reported a 9% rise in revenues to reach approximately $117.1bn.

Yet adjusted operating profits shrank by a third in EBITDA terms to $6.3bn.

The company also swung to a net loss of $233m from a profit of $4.6bn one year before. That was partly the result of $1.7bn of significant items.

Even so, net debt reduced by $1.3bn to $3.6bn.

Chief executive officer Gary Nagle also noted the annualised free cash flow generation of about $6.1bn during the period.

Nagle said that the free cash flow generation figure "augers well for potential top-up shareholder returns, above our base cash distribution, in February 2025."

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