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Highlights
- $14.4 billion Adjusted EBITDA, down 16%, driven by lower energy coal prices.
- Marketing Adjusted EBIT of $3.2 billion, at the top end of long-term guidance despite 8% decline.
- Net income of $3.7 billion (pre-significant items), but reported net loss of $1.6 billion.
Glencore plc (LSE:GLEN) has reported a 16% drop in Adjusted EBITDA to $14.4 billion for 2024, reflecting weaker energy coal prices and the progressive normalisation of energy markets following the volatility of 2022 and 2023.
Financial Performance
- Marketing Adjusted EBIT came in at $3.2 billion, at the top end of the company’s long-term guidance range ($2.2–$3.2 billion). However, this was 8% lower than 2023, as strong Metals & Minerals earnings were offset by softer energy markets.
- Industrial Adjusted EBITDA declined 20% to $10.6 billion, driven by lower energy coal prices, partially cushioned by the acquisition of EVR’s steelmaking coal business and higher zinc earnings due to higher gold prices.
- Funds from operations (FFO) rose 11% to $10.5 billion, helping to support capital expenditures and acquisitions.
- Net income (pre-significant items) stood at $3.7 billion, but Glencore reported a net loss of $1.6 billion due to impairment charges and exceptional items.
Balance Sheet & Capital Expenditures
- Net debt increased to $11.2 billion from $4.9 billion, following $6.7 billion in capital expenditures, the $7 billion EVR acquisition, and $1.9 billion in shareholder returns.
- Net funding (including lease liabilities and EVR debt) increased to $36.4 billion.
- Liquidity remained strong at $11.5 billion, with bond maturities capped at ~$3 billion per year.
- Net debt-to-Adjusted EBITDA ratio of 0.78x provides significant financial flexibility.
Strategic Moves & Future Outlook
- Glencore’s divestment of its 50% stake in Viterra, in a cash and shares deal with Bunge, is set to close soon, subject to regulatory approvals. The deal will provide $1 billion in cash and 32.8 million Bunge shares (~15% stake) in the combined entity.
- Illustrative annualised free cash flow generation is estimated at $4.8 billion, based on an Adjusted EBITDA of $15.3 billion at spot prices.
Despite a challenging year, Glencore remains financially strong, supported by diversified earnings, disciplined capital allocation, and strategic acquisitions. The company is optimistic about its long-term resilience, especially with growing demand for metals and minerals in the energy transition.
