2023-08-08 07:57:21 ET
Glencore ( OTCPK:GLCNF ) ( OTCPK:GLNCY ) made clear Tuesday it remains very interested in a deal with Teck Resources ( NYSE: TECK ) by holding back $2B for a potential purchase of the Canadian company's steelmaking coal business - cash it would have otherwise returned to shareholders.
Glencore disclosed the war chest in its H1 results that showed core earnings cut in half from the previous year, as prices for coal, oil and gas materially declined from levels seen in 2022, and inflationary pressures weighed on other metal prices.
Adjusted EBITDA fell 50% in the six months through June to $9.39B from $18.92B a year earlier, below analyst expectations at Deutsche Bank, which had forecast $9.9B, and Citi, which had estimated $11.4B.
H1 net profit fell to $4.57B from $12.09B in the year-ago period; commodity trading profit fell 52% Y/Y to $1.8B but still above the $1.1B-$1.6B per half year the company aims for.
Glencore ( OTCPK:GLCNF ) ( OTCPK:GLNCY ) said it will top up its dividend by $1B and buy back another $1.2B of its shares, sharply lower than a year earlier, in part because it is holding back cash for a potential Teck deal.
The company also said its sale of agricultural business Viterra and subsequent merger with Bunge is expected to close in mid-2024.
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Glencore holding back $2B cash for potential Teck Resources deal