US $ million | H1 2019 | H1 2018 | Change% | 2018 |
Key statement of income and cash flow highlights2: | ||||
Net income attributable to equity holders | 226 | 2,776 | (92) | 3,408 |
Adjusted EBITDA◊ | 5,582 | 8,180 1 | (32) | 15,767 |
Adjusted EBIT◊ | 2,229 | 5,091 1 | (56) | 9,143 |
Earnings per share (Basic) (US $) | 0.02 | 0.19 | (89) | 0.24 |
Funds from operations (FFO)3◊ | 3,516 | 5,566 1 | (37) | 11,595 |
Cash generated by operating activities before working capital changes | 5,409 | 6,805 | (21) | 13,210 |
Net purchase and sale of property, plant and equipment3 | 2,193 | 2,055 1 | 7 | 4,899 |
US $ million | 30.06.2019 | 31.12.2018 | Change% |
Key financial position highlights: | |||
Total assets | 127,183 | 128,672 | (1) |
Net funding3◊ | 33,238 | 32,138 | 3 |
Net debt3◊ | 16,308 | 14,710 | 11 |
ratios: | |||
FFO to Net debt3,4◊ | 58.5% | 78.8% | (26) |
Net debt to adjusted EBITDA4◊ | 1.24 | 0.93 | 33 |
1 Restated to present Glencore Agri on a basis consistent with its underlying IFRS treatment (equity accounting), previously proportionately accounted, refer to APMs section for reconciliations and note 2 of the 2018 annual report.
2 Refer to basis of presentation on page 5.
3 Refer to page 9.
4 H1 2019 and H1 2018 ratio based on last 12 months' FFO and Adjusted EBITDA, refer to APMs section for reconciliation.
◊ Adjusted measures referred to as Alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards; refer to APMs section on page 66 for definition and reconciliations, to note 3 of the financial statements for reconciliation of Adjusted EBIT / EBITDA and to page 18 for reconciliations of Mining Margins.
- Adjusted EBITDA for the first half of the year 2019 down 32% to 5,6 billion USD (5,9 billion USD before non-cash cobalt loss of 350 million USD)
- Net income attributable to shareholders decreased to 0,2 billion USD, mainly due to lower average commodity prices and impairment charges in our oil and copper portfolios in Chad and Africa
- Cash flow from operating activities before changes in working capital decreased by 21% to 5,4 billion USD
- Net purchase and sale of property, plant and equipment increased by 7% to 2,2 billion USD
- Our startup / development assets, consisting of Copper Africa and Koniambo, detracted from earnings in the first half of 2019 with a negative adjusted EBITDA of 0,4 billion USD. These assets offer a significant upward trend with consistent production.
Industry leading cost items
- Cash-cost performance of the operating unit in the first half of the year for our major commodities: copper (excluding African copper) 72 cp, zinc 3 cp (excluding gold 40 cp), nickel (excluding Koniambo) 329 cp and thermal coal 46 USD / t a margin of 32 USD / t
Marketing a diversified earnings driver
- Marketing Adjusted EBIT of 1,0 Billion, minus 35%, but only 13%, net of a cobalt loss due to an "involuntary" cobalt long position against a particularly strong base period
Forecast factors for the full year ...
- On an annualized basis, adjusted EBIT before cobalt marketing at 1,3 billion dollars was in the middle of our long-term target corridor from 2,2 to 3,2 billion dollars
- Expected industrial production of H2 for copper, zinc, nickel, coal and oil
- African Copper and Koniambo are taking significant initiatives to improve their operations and costs
... and a solid balance sheet in the medium term
- Debt facilities renewed in March / April. The maturities of the bonds are still limited to ~ 3 billion USD per year
- Although net debt of 16,3 billion USD is at the upper end of our target range due to a new lease accounting standard, 2019 recognized new lease liabilities of 1,1 billion previously treated as operating leases Conservative 1,24x Net Debt / Adjusted EBITDA -Relationship. We intend to manage the balance sheet over the next 6 to 12 months in view of our target of approximately 1x in the current uncertain environment of the business cycleTo view the full report, please click
https://www.glencore.com/dam/jcr:de09eded-6a3b-42f7-9b82-f40d1a257dcd/GLEN-2019-Half-Year-Report.pdfFor more information please contact:Investors
Martin Fewings
t: + 421 917 252 978
m: + 41 79 737 5642
[email protected]Media
Charles Watenphul
t: + 421 917 252 978
m: + 41 79 904 3320
[email protected]Glencore LEI: 2138002658CPO9NBH955
Text and pictures: Glencore
Translation: Institute of rare earth metals