Glencore: Preliminary Results 2014 Dienstag, 03. März 2015 - 08:33
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NEWS RELEASE
Baar, 3 March 2015
Preliminary Results 2014
Full report can be accessed here or on www.glencore.com
Highlights
US$ million | 2014 Reported | 2013 Pro forma2 | Change % | 2013 Reported2 |
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Key statement of income and cash flows highlights1: |
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Adjusted EBITDA3 | 12,764 | 13,071 | (2) | 10,466 |
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Adjusted EBIT3 | 6,706 | 7,434 | (10) | 5,970 |
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Net income attributable to equity holders pre-significant items4 | 4,285 | 4,583 | (7) | 3,666 |
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Earnings per share (pre-significant items) (Basic) (US$) | 0.33 | 0.35 | (6) | 0.33 |
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Net income/(loss) attributable to equity holders5 | 2,308 | 2,473 | (7) | (8,046) |
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Funds from operations (FFO)6 | 10,169 | 10,375 | (2) | 8,030 |
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Capital expenditure (excluding Las Bambas of $961 million and $1,734 million in 2014 and pro forma 2013 respectively) | 8,566 | 11,316 | (24) | 8,680 |
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US$ million | 31.12.2014 Reported | 31.12.2013 Pro forma2 | Change % | 31.12.2013 Reported2 |
Key financial position highlights: |
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Total assets | 152,205 | 154,862 | (2) | 154,862 |
Current capital employed (CCE)7 | 21,277 | 24,292 | (12) | 24,292 |
Net debt6 | 30,532 | 35,798 | (15) | 35,798 |
Ratios: |
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FFO to Net debt6 | 33.3% | 29.0% | 15 | 22.4% |
Net debt to Adjusted EBITDA | 2.39x | 2.74x | (13) | 3.42x |
Adjusted EBITDA to net interest | 8.68x | 9.12x | (5) | 7.54x |
Adjusted current ratio3 | 1.23x | 1.18x | 4 | 1.18x |
1 Refer to basis of preparation on page 5.
2 2013 has been adjusted to reflect the updated fair value acquisition accounting for the acquisitions of Xstrata (see note 25).
3 Refer to note 2 of the financial statements for definition and reconciliation of Adjusted EBIT/EBITDA.
4 Refer to significant items table on page 7.
5 2013 reported, adjusted by $(466) million as a result of the finalisation of the fair value adjustments relating to the acquisition of Xstrata and the resulting increase to the associated impairment (does not impact EBIT and EBITDA), see note 4 of the financial statements. Refer to page 122 for pro forma results and page 7 for reported results.
6 Refer to page 9.
7 Refer to glossary for definition.
- Adjusted EBITDA of $12.8 billion in 2014 was modestly down on 2013 (2%), notwithstanding the weaker commodity price environment, reflecting:
- Marketing Adjusted EBITDA up 15% to $3.0 billion (Adjusted EBIT up 18% to $2.8 billion), including significant earnings growth within Agriculture, on the back of strong results from Viterra.
- Industrial Adjusted EBITDA lower by 7% to $9.8 billion, due to generally lower prices, largely offset by the positive impacts of production growth, real unit cost savings and weaker producer currencies.
- Production growth consisted of:
- Copper up 4% to 1.5 million tonnes, principally due to the ramp-up of Mutanda, up 31% to 197,000 tonnes, with the operation running at close to capacity throughout the year.
- Higher zinc from Mount Isa, McArthur River and Perkoa as their expansion projects ramp-up, keeping overall zinc in line with 2013 at 1.4 million tonnes, despite lost production from the planned closures of the Perseverance and Brunswick mines in 2013.
- Coal up 6% to 146.3 million tonnes, relating to productivity improvements and delivery of various advanced stage Australian thermal coal projects. A 3 week shutdown at our Australian coal operations was carried out over December 2014 and January 2015 in response to the subdued market environment.
- Glencore oil entitlement was 7.4 million barrels, 47% higher than 2013. The increase relates to full year production from the Alen and Badila fields and increased ownership of the Chad assets following the Caracal acquisition. Mangara started production at the end of December 2014 and is expected to ramp-up during 2015.
- FFO was broadly in line with 2013 at $10.2 billion, reflecting the resilient operating performance noted above.
- Net debt decreased by $5.3 billion to $30.5 billion, reflecting robust operating cashflow, proceeds from the sale of Las Bambas, a 25% reduction in net capital expenditure and active working capital management.
- Overall balance sheet remains strong and flexible with $9.4 billion of committed available liquidity at year-end.
- Progressive capital management:
- Our announced $1 billion share buyback programme returned to shareholders some $760 million by 31 December 2014; $930 million as of today.
- Board has recommended a final cash distribution of $12 cents per share ($18 cents for the full year), 9% higher than 2013, reflecting our continued confidence in the strength and prospects of the Group.
- Ongoing portfolio management reflects:
- Completion of the sale of Las Bambas noted above.
- Consolidation of our interests in Chad through the acquisition of Caracal.
- Proposed in specie distribution of our non-core 23.9% stake in Lonmin.
- Responding to the volatile market backdrop, we comprehensively reviewed the appropriate level of capex for 2015. Originally guided to $7.9 billion, we now expect 2015 total industrial capex to be in the $6.5-$6.8 billion range, with reduced spend across the broad portfolio.
Glencore's Chief Executive Officer, Ivan Glasenberg, commented:
"Our ultimate goal remains to grow our free cash flow and return excess capital in the most sustainable and efficient manner. As the most diversified raw material producer and marketer, Glencore is well positioned to react to and benefit from changes in commodity fundamentals. Glencore will continue to focus on maximising the value of the potential within our businesses. We look forward to the future with confidence."
In addition, Glencore has today published on its website (www.glencore.com) a presentation which contains a summary of the 2014 preliminary results.
Investors | Media | |
Paul Smith t: +41 (0)41 709 24 87 m: +41 (0)79 947 13 48 e: paul.smith@glencore.com | Charles Watenphul t: +41 (0)41 709 24 62 m: +41 (0)79 904 33 20 e: charles.watenphul@glencore.com | |
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Investors | Investors | |
Martin Fewings t: +41 (0)41 709 28 80 m: +41 (0)79 737 56 42 e: martin.fewings@glencore.com | Elisa Morniroli t: +41 (0)41 709 28 18 m: +41 (0)79 833 05 08 e: elisa.morniroli@glencore.com |
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www.glencore.com