Singapore 01/03/2016 - Glencore has posted a $4.96 billion net loss attributable to equity holders in 2015, the commodities giant announced on Tuesday.
This compared with a net profit of $2.31 billion in 2014.
In 2015, the company booked net exceptional charges of $5.8 billion related to impairments, restructuring costs, net losses on disposals of operations – including $1.3 billion already recognised in the first half of the year.
The impairments mainly related to lower prices which affected its oil operations and Koniambo nickel assets which was compounded by technical issues, and the recognition of a loss on cessation of Optimum Coal, it said.
Its total adjusted EBITDA of $8.69 billion in the year was down 32 percent due to weaker commodity prices, partially offset by cost efficiencies and favourable producer country currencies.
Its metals and minerals business achieved $5.31 billion in adjusted EBITDA in the year, down 38 percent from the previous year on significantly lower commodity prices, which reflect widespread fears to China’s decelerating rate of growth, the strong US dollar and lower oil prices, the company said.
On the supply side, there remains too much ‘sticky’ higher cost supply, which delays the eventual rebalancing of markets to more sustainable levels, it added.
Glencore's net debt had declined to $25.9 billion in the year as it targets a further reduction to $17-18 billion by the end of 2016.
The company also said it is confident of achieving $4-5 billion of asset disposals during the remainder of 2016, with its remaining asset sales processes proceeding well.
Bids for the potential disposal of copper mines - Cobar in Australia and Lomas Bayas in Chile - are expected to be finalised during the second quarter of this year, while it continues to consider further monetisation of remaining precious metals production base and certain infrastructure/logistics assets, it noted.
Glencore had finalised a gold-streaming deal on its Antapaccay mine in February, while noting multiple expressions of interests in its current potential assets.