Glencore, a global resources giant, has reported a massive annual loss due to plummeting energy prices. The company’s earnings fell by 138%, resulting in a loss of R29.9 billion. This is a significant decline from the R78.7 billion profit reported in 2023.
The loss was largely due to the write-down of Glencore’s South African coal assets. The company said that lower forecast price assumptions had a significant impact on its coal operations. Energy markets have normalized in 2024, following severe disruptions and elevated market volatilities seen over 2022 and 2023.
Despite the loss, Glencore’s CEO, Gary Nagle, said that the company’s diversified business model had proven itself to be resilient in a range of market conditions. The company announced plans to return $2.2 billion to shareholders, including a base cash distribution and a share buyback program.
Glencore’s revenue increased by 6% to $230.9 billion, but its adjusted earnings before interest, taxes, depreciation, and amortization declined by 16% to $14.3 billion. The company’s metals and minerals business performed well, but the energy market decline had a significant impact on its overall performance.