Glencore no longer glitters as it reports underwhelming 2023 financial results

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on Feb 21, 2024
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  • Mining company Glencore reported its preliminary 2023 financial results this morning before markets opened.
  • After an incredibly successful 2022, the 2023 results represented a significant step down for the company.
  • Among other items of note were a lower EPS and lower revenue than the year prior.

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Swiss mining giant Glencore, parent company of Australian mining company Glencore Technology, reported their preliminary 2023 results before London markets opened today.

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Glencore reported a net income for the year, which was attributable to equity holders, of $4.3 billion.

This was more than 75% less than the previous year’s net income.

The results in more detail

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  • Revenue was $217.82 billion for the full year
  • Adjusted EBITDA was $17.10 billion for the year
  • Earnings per basic share were $0.34, less than a third of the previous year’s EPS
  • Funds from operations were $9.45 billion
  • The 2023 year-end net debt outturn was also higher at $4.9 billion, compared to $0.1 billion in 2022.

Forecast ahead of results

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On February 1st, in its 2023 full year production report, Glencore gave a forecast itself of what it anticipated reporting for its preliminary results. These included an EBITDA of $3.5 billion.

However, market analysts were more bearish, anticipating a decline of at least 1.5 percent in revenue and at least 15 percent in earnings per share for the results.

Comparison with previous results

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  • Net income for the year: $17.32 billion in 2022
  • Revenue was $255.98 billion
  • Adjusted EBITDA was $34 billion, an increase of 60% YoY from 2021
  • Earnings per basic share was $1.33, itself a 250% increase from 2021
  • Funds from operations was $25.98 billion
  • Net debt: a low $75 million

Glencore news

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The company has been in the news recently for the declining Glencore share price of late.

This has largely been attributed to the steep declines in value recently of nickel, gold and other minerals and metals which are major sources of income for the company.

This came to a head when Glencore announced earlier this month that it was selling its 49 percent stake in unprofitable nickel mine Koniambo.

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Glencore Earnings Reports Mining Stock Market