Glencore PLC (GLEN) reported preliminary results for full fiscal 2017, indicating a strong financial performance for the year.
In 2017, the Switzerland-based miner reported an adjusted Ebitda growth of 44% from the previous year to $14.8 billion. Total revenues, net adjustments, came in at $205.48 billion, a 34.3% increase year over year. Total revenues were shared among marketing activities by about 82% and industrial activities by approximately 18%.
Before adjustments of $15.9 billion, the metals and minerals segment contributed to total revenue with 36.25%; the energy products segment with about 58%; the agricultural products segment with 5.65%; and the corporate and other segment for the residual.
During 2017, Glencore’s key commodities continued to outperform the broader markets thanks toa positive momentum. This was essentially the reason of the substantial growth in Glencore’s yearly total revenue.
Adjusted total revenue and ebitda of 2017, lead to an Ebitda margin (ttm) of 7.20% versus an industry median of about 22.8%.
The company says that “Marketing Adjusted EBIT exceeded $3 billion for the first time since 2008 and Industrial Adjusted EBITDA rose 60% to $11.5 billion.”
The net income that can be attributed to the stockholders of Glencore was $5.8 billion in 2017 versus a net income of $936 million reported by the company for 2016.
Operations generated $11.6 billion. This was a 49% growth on a year over year basis. The net debt of the company at the end of 2017 was $10.7 billon.
Glencore projects dividends for $2.9 billion or 20 cents per ordinary share in 2018. This portion of free cash flow will be dispersed by Glencore over the company’s shareholders through two instalments of equal amount.
Ivan Glasenberg - Chief Executive Officer of Glencore - commented:Â “We look to the future with confidence. We believe our unrivalled positioning in “Tier 1” commodities and “Tier 1” assets will continue to create compelling value for all stakeholders.”
Glencore has a market capitalization of $58.36 billion GBP and a 52-week range of GBP 270.00 to GBP 416.90 per share. The company is currently reporting a volume of 14.29 billion shares outstanding, of which 76.5% is float. Among the top mutual fund holders of Glencore Plc, the holder Europacific Growth Fund owns the highest percentage of the company’s shares outstanding with 1.75% rate.
The stock has a positive drift over the last 52 weeks of trading and is above the 50, 100 and 200-SMA lines.
Source: Yahoo Finance
The recommendation rating is 2.1 out of 5. With an average target price of GBP 6.30, analysts predict a 59% upside from the current market valuation.
(Disclosure: I have no positions in any security mentioned in this article.)
