CANBERA (dpa-AFX) - Commodities trader Glencore International Plc. (GLCNF.PK, GLNCY.PK, GLEN.L), which acquired miner Xstrata last year, Tuesday reported a profit in its fiscal 2014, compared to a loss last year, mainly reflecting sharp decline in certain significant expenses. Further, the company lifted its full-year dividend, while trimmed its guidance for fiscal 2015 industrial capex. The stock is currently trading around 2 percent lower in London.
For the year, profit before income taxes was $4.25 billion, compared to a loss of $7.69 billion, a year ago.
Net income attributable to equity holders was $2.31 billion, compared to a loss of $8.05 billion last year. Profit per share was $0.18, compared to loss of $0.73, previous year. Adjusting to reflect the Xstrata acquisition, the prior year's pro forma income to shareholders was $2.47 billion or $0.19 per basic share.
The latest results included significant expenses of $1.98 billion mainly income tax expenses. Meanwhile, last year's reported results included charges of $11.71 billion mainly goodwill impairment and other charges related to the acquisition, and pro forma results included charges of $2.11 billion.
Before significant items, attributable profit was $4.29 billion or $0.33 per basic share, compared to $3.67 billion or $0.33 per share a year ago. Last year's pro forma adjusted profit was $4.58 billion or $0.35 per share.
Funds from operations were $10.17 billion in 2014. In the previous year, reported FFO was $8.03 billion and pro forma FFO stood at $10.38 billion.
Adjusted earnings before interest, tax, depreciation and amortization or EBITDA was $12.76 billion, compared to $10.47 billion last year, despite the weaker commodity price environment. Adjusted pro forma EBITDA was $13.07 billion in the prior year.
Revenue decreased to $221.07 billion from $232.69 billion a year ago.
Metals and Minerals' revenues declined in the year amid challenging marketing conditions, particularly in iron ore, and the impact of lower copper and precious metal prices on the industrial activities. These factors were mitigated mainly by higher copper production volumes.
Total copper production from own source was 1.55 million tonnes, compared to last year's 1.49 million tonnes. Copper production reflected the ramp-up of Mutanda, with the operation running at close to capacity throughout the year.
Zinc production was 1.39 million tonnes, while last year's production was 1.40 million tonnes.
Further, the Board of Glencore has recommended a final cash distribution of 12 cents per share, resulting in 18 cents for the full year, 9 percent higher than 2013.
Looking ahead, the company now expects 2015 total industrial capex to be in the $6.5 billion to $6.8 billion range, compared to original guidance of $7.9 billion, with reduced spend across the broad portfolio. The downward revision reflects the company's response to the volatile market backdrop.
Glencore's Chief Executive Officer, Ivan Glasenberg said, '...Glencore will continue to focus on maximising the value of the potential within our businesses. We look forward to the future with confidence.'
In London, Glencore shares were trading 1.66 percent lower at 295.55 pence.
Copyright RTT News/dpa-AFX