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Glencore reports net loss of $1.9B in 2020, elects not to pay dividend

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(Kitco News) - Glencore, one of the world’s largest global diversified natural resource companies, today reported that its annual net loss attributable to equity holders increased by 371%, from $400 million in 2019 to $1,900 million in 2020, mainly due to impairment charges related to Mopani copper in Zambia and the company’s Colombian coal and African oil portfolio.

The company said that owing to the uncertainty resulting from the Covid-19 pandemic and to support the group’s overall financial position during 2020, the Board elected not to pay any distributions in 2020.

Some of Glencore’s industrial assets were required to temporarily suspend operations during the year in line with national and regional guidance. The impacts were most notable in Peru, South Africa and Colombia, while Australia and Canada were relatively unaffected.

Glencore’s adjusted EBITDA of $11.6bn was flat year-over-year, with stronger marketing and industrial metals offset by weaker coal prices. Net income pre-significant items was $2.5bn, in line with 2019. Significant items were mainly non-cash impairment charges amounting to $5.9bn (2019: $2.4bn), primarily in respect of Mopani, Colombian coal and the African oil portfolio. Resulting statutory loss was $1.9bn.

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. The group's operations comprise around 150 mining and metallurgical sites and oil production assets. Glencore's companies employ around 145,000 people, including contractors.

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