Glencore posts FY loss on weak coal prices, unveils $1bn buyback

(Sharecast News) - Glencore reported a fall in annual core earnings due to weaker coal prices prices but said it would still return $2.2bn to shareholders via dividends and a buyback. The miner and trader said adjusted earnings before interest, tax, depreciation and amortisation fell 16% to $14.36bn last year. Analysts had been expecting $14.55bn.

Adjusted operating profit fell 33% to $7bn, while revenue rose 6% to $231bn.

Glencore is paying out $1.2bn in dividends together with a "top-up" buyback of $1bn to be concluded before the release of first-half results on August 6 at which the company plans to announce further shareholder returns "noting our regular updating and reporting of illustrative free cashflow generation at spot commodity prices, which is currently a healthy $4.8bn".

"The strength of our diversified business model across our industrial and marketing businesses, which focus on the commodities needed for today and tomorrow, has proved itself adept in a range of market conditions, giving us a solid foundation to navigate successfully the near-term macroeconomic environment and be well positioned for the future," said chief executive Gary Nagle.

Reporting by Frank Prenesti for Sharecast.com