Glencore has launched a $1bn (£792m) share buyback programme despite recording a 16 per cent drop in adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) in 2024.
The firm’s EBITDA fell to $14.4bn, down from $17.1bn in 2023, while adjusted earnings before interest and tax (EBIT) fell by a third.
Despite the fall, the FTSE 100 mining giant announced today in its preliminary annual results that it will pay $2.2bn in shareholder returns through cash distributions and buybacks based on its performance in 2024.
“The decline in adjusted operating profit, particularly within the Industrial segment, was mainly a function of lower average energy coal prices year over year,” said Glencore CEO Gary Nagle.
“Prices are currently weak amid fears of soft Chinese demand and higher Indonesian output, and the effect of tariffs between Washington and Beijing are yet to become clear,” explained Russ Mould, investment director at AJ Bell.
Glencore also operates in the nickel and lead spaces, and prices have struggled in these sectors over the last year.
Analysts had been expecting a fall in operating profit in the firm’s results but are currently forecasting a rebound in the figure for 2025 thanks to a reduction in the volatility of commodity prices.
Glencore’s stock price has fallen more than 10 per cent in the last year and 2.6 pe rcent since the start of 2025.
“Operationally, 2024 was a strong year for Glencore,” said Nagle. “Our Industrial assets delivered full year production numbers within their original guidance ranges, which together with the addition of EVR’s steelmaking coal volumes from July 2024, resulted in a four per cent growth in copper equivalent volumes year over year.”
“Capital expenditure has been creeping up, but net debt is very low at $3.7bn and that could give Glencore room for some expansive strategic action,” added Mould.
Last month, rumours emerged that Glencore was eyeing a merger with mining rival Rio Tinto, which would be one of the biggest transactions in the industry ever.
The two firms are reportedly looking to join forces to better navigate the energy transition and secure access to metals necessary for renewable fuel.