Glencore Shares Slide After Reporting 2024 Profit Decline

Glencore’s (LON: GLEN) share price fell after the commodities giant reported a 16% drop in adjusted EBITDA for 2024, driven by lower energy coal prices. 

The company said net income for the year swung to a $1.6 billion loss, compared to a $4.3 billion profit in 2023.

Glencore shares are currently down over 6% on Wednesday, adding to the recent decline. So far this year, the stock has declined more than 6%, while it has fallen 18.7% in the last six months. 

CEO Gary Nagle acknowledged that while operational performance remained strong, with 4% growth in copper equivalent production, weaker coal prices weighed on earnings. 

“Our strong operational performance, along with another strong Marketing contribution, supported the generation of Adjusted EBITDA of $14.4 billion and Funds from operations of $10.5 billion during 2024, down 16%, but up 11%, respectively compared to 2023,” Nagle said. 

“The decline in Adjusted EBITDA, particularly within the Industrial segment, was mainly a function of lower average energy coal prices year over year.” 

Glencore’s Marketing division generated $3.2 billion in adjusted EBIT, at the upper end of its long-term guidance, although 8% lower year-on-year due to a normalisation of energy markets. 

Meanwhile, the Industrial segment saw a 20% drop in adjusted EBITDA to $10.6 billion, reflecting weaker coal prices despite stronger results from the company’s zinc and gold businesses.

Despite the profit decline, shareholder returns of $2.2 billion were announced, including a $0.10 per share dividend and a $1 billion share buyback programme. 

Glencore’s net debt rose to $11.2 billion, up from $4.9 billion in 2023, partly due to the $7 billion acquisition of steelmaking coal producer EVR.Looking ahead, Glencore expects a 4% annual production growth in copper equivalents through 2028 and remains optimistic about its portfolio across metals, minerals, and energy.