Source: Sharecast
Adjusted core earnings, slumped to $9.39bn from $18.92bn a year earlier, against expectations of $9.9bn.
“In addition to the significant weakening in energy markets, the recent overall cycle of inflation, tighter monetary conditions and limited global economic growth, contributed to average period-over-period price reductions in copper, cobalt, nickel and zinc of 11%, 59%, 13% and 26% respectively,” the company said on Tuesday.
“While lower energy prices have recently tempered some of the inflationary pressures in key Western markets, the restart of previously shuttered energy-intensive industries, including some steel, zinc and aluminium production, has been limited by weak end-user markets, particularly in Europe.”
Glencore also said it was paying out $1bn as a special dividend and buying back another $1.2bn of its shares until next February. This is significantly lower than the extra $4.5bn in the same period of 2022, including a $1.45bn special dividend and a $3bn share buyback.
The Swiss-based company revealed that it had set aside $2bn in cash as part of its $22.5bn plan to by Teck Resources' coal business as a standalone unit, having been rejected twice.
As part of the proposed deal, Glencore would spin-off and merge its thermal coal business with Teck's steelmaking coal one to form a separate New York-listed company.
Reporting by Frank Prenesti for Sharecast.com