- Glencore’s 1H 2024 revenue was $117.09 billion, surpassing the estimated $114.38 billion.
- Adjusted EBITDA came in at $6.34 billion, slightly below the estimated $6.37 billion.
- Adjusted EBIT was $2.85 billion, under the expected $3.19 billion.
- Net debt was reported at $3.65 billion.
- Glencore maintained its 2024 full-year production guidance, noting production will be heavier in the second half.
- The acquisition of EVR in July led Glencore to keep its coal and carbon steel materials business, considered optimal for shareholder value.
- Group Adjusted EBITDA decreased by 33% from the prior year due to lower commodity prices, especially thermal coal; however, Funds from Operations rose by 9% due to the timing of tax payments.
- Glencore reported a net loss attributable to equity holders of $233 million, factoring in $1.7 billion of significant items, including around $1.0 billion in impairment charges.
- Net debt was reduced by $1.3 billion compared to the end of 2023, post funding of $2.9 billion in capital expenditure and $1.0 billion in shareholder returns.
- Analyst recommendations include 12 buys, 5 holds, and 0 sells.
Glencore Plc on Smartkarma
Analyst coverage of Glencore Plc on Smartkarma reveals insights from Dimitris Ioannidis, who holds a bearish sentiment regarding the company. In his report titled “Glencore (GLEN): Green Light from Canada for $6.9bn Acquisition of EVR. Demerger on the Table,” Ioannidis highlights Glencore’s $6.9bn cash acquisition of a 77% stake in Teck’s Elk Valley Resources. With regulatory approval secured from the Government of Canada, the acquisition is set to close on 11 July 2024. Ioannidis points out that the demerger following the acquisition could potentially increase the risk of future passive fund supply for Glencore, though the exact impact remains uncertain due to the extended time horizon involved.
A look at Glencore Plc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Glencore Plc, a diversified natural resources company, is showing a promising outlook based on its Smartkarma Smart Scores. With a strong score of 5 for Dividend and a solid score of 4 for Value and Growth, the company appears well-positioned for the long term. Glencore Plc offers a global reach with its operations in Metals and Minerals, Energy Products, and Agricultural Products, further enhancing its potential for sustained growth and profitability.
Although Glencore Plc has slightly lower scores for Resilience and Momentum at 3, the overall picture painted by the Smart Scores suggests a favorable future trajectory for the company. Investors may find Glencore Plc an attractive opportunity given its robust dividend score, solid value and growth outlook, and diverse product offerings across various sectors on a global scale.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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