23 Feb Glencore reports 18% core profit for 2016
Glencore (LSE:GLEN) has joined fellow mining giants BHP Billiton (NYSE:BHP) and Vedanta Resources (LSE:VED) in announcing profitable financial results for 2016 this week.
Core earnings at Glencore rose by 18% to US$10.3 billion in 2016 after commodity prices experienced a slight rebound over the year.
Net income also swelled by 48% year-on-year to just under $2 billion, however, the decision to hedge a portion of coal production affected energy profits, which decreased by 20%.
The company described the move as an ‘opportunity cost’ of $980 million as coal markets rallied during the second half of the year.
Glencore’s chief executive officer, Ivan Glasenberg said: “Since our IPO in 2011 and subsequent acquisition and integration of Xstrata, Glencore has never been so well positioned as it is today.
“As we look forward, increasingly favourable fundamentals provide the potential to create significant long-term value for Glencore shareholders via our leading portfolio of well capitalised tier one assets and resilient marketing business, combined with significant low-cost copper and zinc growth options and disciplined approach to supply.”