Glencore Posts First Annual Loss In Four Years As Impairments Bite
Core earnings or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $11.6 billion beat analysts' estimates of $11.25 billion.
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Glencore reported its first annual net loss since 2015 on Tuesday, as the commodity miner and trader took charges for its Colombian coal, Chad oilfields and African copper and cobalt operations.
The London-listed miner reported a net loss of $404 million for the full year ended Dec. 31, compared to a profit of $3.41 billion a year earlier.
Core earnings or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $11.6 billion beat analysts' estimates of $11.25 billion.
The $2.8 billion in impairments mainly related to its Colombian coal, Chad oil and African copper operations.
Glencore's Colombian coal business was hit by an oversupply of liquefied natural gas (LNG) and weaker European demand. Its African copper mine Mutanda suffered from low cobalt prices.
The miner entered Chad in 2012 when it bought a Chad-focused operator for $1.6 billion. The purchase was made months before a major oil price slump. Since 2015, Glencore has booked major impairments.
(Reuters)