Shares in Glencore (LON:GLEN) have advanced in London this morning as the commodities group said that it had seen its ‘strongest on record’ performance in 2017. The company saw its income and earnings soar last year, benefitting from a recovery in resource prices.
As of 10:20 GMT, Glencore’s share price had added 3.94 percent to 399.55p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.28 percent lower at 7,226.67 points. The group’s shares have added more than 22 percent to their value over the past year, as compared with about a 0.7-percent dip in the Footsie.
Glencore posts results
Glencore updated investors on its full-year performance this morning, revealing that its net income had soared as much as 319 percent to $5.78 billion in the year ended December 31, while the group’s basic earnings per share had come in 310 percent higher at $0.40. The commodity giant further managed to lower its net debt by 31 percent to $10.67 billion.
“Our performance in 2017 was our strongest on record, driven by our leading Marketing and Industrial asset businesses,” Glencore’s chief executive Ivan Glasenberg commented in the statement, adding that the blue-chip commodities group looked ‘to the future with confidence’.
Glencore also recommended a 2018 distribution of $2.9 billion or $0.20 per share, to be paid in two equal payments.
“Mission accomplished: net debt hits lower end of target,” Paul Gait, mining analyst at Bernstein, said in a note to clients, as quoted by Bloomberg.
JPMorgan Chase & Co reiterated its ‘overweight’ rating on Glencore today, valuing the shares at 570p, while Liberum continues to see the company as a ‘sell’ with a price target of 300p. According to MarketBeat, the commodities group currently has a consensus ‘buy’ rating and an average price target of 421.71p.