REG - Glencore PLC - 2025 Half-Year Report

GlencoreAnnouncement

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RNS Number : 0923U  Glencore PLC  06 August 2025

NEWS RELEASE

Baar, 6 August 2025

 

2025 Half-Year Report

Highlights

 

Glencore's Chief Executive Officer, Gary Nagle, commented:

"Over the first half, we have continued to make significant progress in
optimising the business and positioning for further value accretive growth. A
comprehensive review of our industrial portfolio during the period has
recognised opportunities to streamline our industrial operating structure, to
optimise departmental management and reporting, and to support enhanced
technical expertise and operational focus. The review also identified c.$1
billion of recurring cost savings opportunities (against a 2024 baseline)
across our various operating structures, which are expected to be fully
delivered by the end of 2026, with more than 50% already targeted for the end
of 2025.

"In our recent production report, we reiterated our expectation of meeting
full year production guidance, with the ranges tightened to reflect
performance to date. While our zinc and coal assets are largely operating at
the required run rates to deliver full-year volumes, our copper business is
currently navigating various temporary, but largely expected, operational
factors, including mine sequencing, lower grades, water constraints and cobalt
stockpiling. These significantly impacted H1 2025 production at Collahuasi,
Antamina, Antapaccay and KCC, with all these operations expecting a
substantial step-up in H2.

"Primarily reflecting weaker coal prices during the period and the impact of
the lower copper production in H1 2025, Industrial Adjusted EBITDA of $3.8
billion was 17% down on H1 2024. Marketing provided an overall solid Adjusted
EBIT contribution of $1.4 billion, 8% lower than H1 2024. In aggregate,
Glencore's Adjusted EBITDA of $5.4 billion was 14% lower than H1 2024.

"After funding $3.2 billion of net capex, $1.8 billion of shareholder returns,
and a $1.1 billion increase in non-Readily marketable inventories (RMI)
working capital, via a number of commodity pre-pay/lending transactions
expected to be high-returning, Net debt, including $1.0 billion of marketing
lease liabilities, finished the half at $14.5 billion, up $3.2 billion from
the end of 2024. With a Net debt to Adjusted EBITDA ratio of 1.08x (down to
1x, when reflecting the c.$900 million cash received on 2 July 2025 in
connection with the sale of Viterra), we continue to have significant
financial headroom and strength.

"We expect healthy cash flow generation and deleveraging in H2 2025, noting
the 40/60 copper guidance production % split between H1 and H2, some unwind of
the H1 non-RMI working capital investment, delivery of some of the cost
savings above, and consideration of our regularly updated, illustrative
annualised free cash flow generation at spot commodity prices, currently at a
healthy c.$4 billion. Accordingly, we expect our ordinary course Net debt to
meaningfully reduce by year-end.

"Upon completion of the Viterra sale in early July, we received c.$900 million
in cash, as well as shares in Bunge equivalent to 16.4% of the enlarged
company. Reflecting our capital allocation and leverage framework, we view
these NYSE-listed Bunge shares as representing surplus capital (being
warehoused for appropriate monetisation for Glencore shareholders at some
point in the future), with a market value at the time of completion of c.$2.63
billion. Underpinned by the value of this shareholding, we announced a share
buyback of up to $1 billion (less than 40% of the share value), to be
concluded by the time of our 2025 annual results in February 2026.

"We will be paying the second tranche of our base dividend of $0.05 per share
in September and incorporating the new up to $1 billion share buyback
communicated in July, total announced 2025 shareholder returns increases to
$3.2 billion.

"With the completion of the Viterra sales process, we have also increased our
long-term through the cycle Adjusted EBIT Marketing guidance range to $2.3 to
$3.5 billion. The new midpoint of $2.9 billion represents an increase of 16%
from c.$2.5 billion (ex-Viterra).

 "While there is much uncertainty around the impacts of geopolitics and trade
in the shorter-term, we remain of the view that, in certain commodities, the
scale and pace of required resource development will struggle to meet the
demand projections for such materials into the future. We are well placed to
participate in bridging this gap, through the flexibility embedded in both our
Marketing and Industrial businesses to respond to global needs."

 US$ million                                             H1 2025             H1 2024            Change %            2024
 Key statement of income and cash flows highlights(1):
 Revenue                                                      117,396             117,091                  -             230,944
 Adjusted EBITDA(◊)                                             5,430               6,335                (14)             14,358
 Adjusted EBIT(◊)                                               1,801               2,850                (37)              6,938
 Net loss for the period attributable to equity holders          (655)               (233)              n.m.              (1,634)
 Loss per share (Basic) (US$)                                   (0.05 )             (0.02)              n.m.               (0.13)
 Funds from operations (FFO)(2◊)                                3,147               4,037                (22)             10,529

 

 US$ million                         30.06.2025           31.12.2024        Change %
 Key financial position highlights:
 Total assets                             132,180              130,460                 1
 Total equity                              32,788               35,660                (8)
 Net funding(2,3◊)                         39,869               36,405                10
 Net debt(2,3◊)                            14,471               11,167                30
 Ratios:
 Net debt to Adjusted EBITDA(4◊)             1.08                 0.78                38

1 Refer to basis of presentation on page 6.

2 Refer to page 10.

3 Includes $1,009 million (2024: $1,072 million) of Marketing-related lease
liabilities.

4 H1 2025 ratio based on last 12 months' Adjusted EBITDA, refer to APMs
section for reconciliation. This ratio reduces to 1x, when reflecting the
c.$900 million cash received on 2 July 2025 in connection with the sale of
Viterra to Bunge.

◊ Adjusted measures referred to as Alternative performance measures (APMs)
which are not defined or specified under the requirements of International
Financial Reporting Standards; refer to APMs section on page 73 for
definitions and reconciliations and to note 3 of the condensed consolidated
interim financial statements for reconciliation of Adjusted EBIT/EBITDA.

2025 HALF-YEAR FINANCIAL SCORECARD

-       $5.4 billion Adjusted EBITDA, down 14% and Industrial Adjusted
EBITDA of $3.8 billion, down 17%, both primarily reflecting weaker coal
(thermal and steelmaking) prices and lower copper volumes

-       Marketing Adjusted EBIT of $1.4 billion, down 8%. An overall
solid result against a macroeconomic environment that was heavily influenced
by US tariff policy uncertainty and tensions in the Middle East

-       Funds from operations (FFO) of $3.2 billion, down 22%, primarily
due to the lower H1 2025 Industrial Adjusted EBITDA, compounded by interest
payments becoming increasingly more weighted to H1 vs H2, given the timing of
our (mainly Q2) capital market bond issuances and related coupon due dates in
recent years

-       Net cash purchase and sale of PP&E: $3.2 billion compared to
$2.9 billion in the prior period; Ex-EVR was below H1 2024

-       Net income attributable to equity holders pre-significant items:
$0.6 billion; Net loss attributable to equity holders: $0.7 billion

-       Adjusted EBITDA mining margins were 24% in our metals
operations, 35% in steelmaking coal and 18% in energy coal

BALANCE SHEET

-       After funding $3.2 billion of net capex, $1.8 billion of
shareholder returns, and a $1.1 billion increase in non-RMI working capital,
Net debt, including $1.0 billion of marketing lease liabilities, finished the
half at $14.5 billion, up $3.2 billion from 2024 year end

-       Net funding, increased to $39.9 billion (vs $36.4 billion at the
end of 2024)

-       Available committed liquidity of $12.6 billion; bond maturities
maintained around a cap of c.$3 billion in any given year

-       Net debt/Adjusted EBITDA of 1.08x, which reduces to 1x when
reflecting the c.$900 million of cash proceeds received on 2 July 2025 in
connection with the sale of Viterra to Bunge, provides significant financial
headroom and strength.

-       Spot illustrative annualised free cash flow generation of c.$4.0
billion from Adjusted EBITDA of c.$14.2 billion

 

To view the full report please click
https://www.glencore.com/.rest/api/v1/documents/static/07647168-ed29-49b5-a379-9a3c7eb87a55/GLEN-2025-Half-Year-Report.pdf
(https://www.glencore.com/.rest/api/v1/documents/static/07647168-ed29-49b5-a379-9a3c7eb87a55/GLEN-2025-Half-Year-Report.pdf)

 

 

 

For further information please contact:

 Investors
 Martin Fewings        t: +41 41 709 2880      m: +41 79 737 5642      martin.fewings@glencore.com (mailto:martin.fewings@glencore.com)
 Media
 Charles Watenphul     t: +41 41 709 2462      m: +41 79 904 3320      charles.watenphul@glencore.com

www.glencore.com (http://www.glencore.com)

Glencore LEI: 2138002658CPO9NBH955

Please refer to the end of this document for disclaimers including on
forward-looking statements.

Notes for Editors

Glencore is one of the world's largest global diversified natural resource
companies and a major producer and marketer of more than 60 commodities that
advance everyday life. Through a network of assets, customers and suppliers
that spans the globe, we produce, process, recycle, source, market and
distribute the commodities that support decarbonisation while meeting the
energy needs of today.

With over 150,000 employees and contractors and a strong footprint in over 30
countries in both established and emerging regions for natural resources, our
marketing and industrial activities are supported by a global network of more
than 50 offices.

Glencore's customers are industrial consumers, such as those in the
automotive, steel, power generation, battery manufacturing and oil sectors. We
also provide financing, logistics and other services to producers and
consumers of commodities.

Glencore is proud to be a member of the Voluntary Principles on Security and
Human Rights and the International Council on Mining and Metals. We are an
active participant in the Extractive Industries Transparency Initiative.

We will support the global effort to achieve the goals of the Paris Agreement
through our efforts to decarbonise our own operational footprint. For more
information see our 2024-2026 Climate Action Transition Plan, available on our
website at glencore.com/publications.

Important notice

This document does not constitute or form part of any offer or invitation to
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any securities. This document does not purport to contain all of the
information you may wish to consider.

Cautionary statement regarding forward-looking information

Certain descriptions in this document are oriented towards future events and
therefore contains statements that are, or may be deemed to be,
"forward-looking statements" which are prospective in nature. Such statements
may include, without limitation, statements in respect of trends in commodity
prices and currency exchange rates; demand for commodities; reserves and
resources and production forecasts; expectations, plans, strategies and
objectives of management; expectations regarding financial performance,
results of operations and cash flows, climate scenarios; sustainability
(including, without limitation, environmental, social and governance)
performance-related goals, ambitions, targets, intentions and aspirations;
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closures or divestments of certain assets, operations or facilities
(including, without limitation, associated costs); capital costs and
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These forward-looking statements may be identified by the use of
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or be achieved. The information in this document provides an insight into how
we currently intend to direct the management of our businesses and assets and
to deploy our capital to help us implement our strategy. The matters disclosed
in this document are a 'point in time' disclosure only. Forward-looking
statements are not based on historical facts, but rather on current
predictions, expectations, beliefs, opinions, plans, objectives, goals,
intentions and projections about future events, results of operations,
prospects, financial conditions and discussions of strategy, and reflect
judgments, assumptions, estimates and other information available as at the
date of this document or the date of the corresponding planning or scenario
analysis process.

By their nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to differ materially from any future events, results,
performance, achievements or other outcomes expressed or implied by such
forward-looking statements. Important factors that could impact these
uncertainties include, without limitation, those disclosed in the risk
management section of our latest Annual Report and/or Half-Year Report, which
can each be found on our website. These risks and uncertainties may materially
affect the timing and feasibility of particular developments. Other factors
which may impact risks and uncertainties include, without limitation: the
ability to produce and transport products profitably; demand for our products
and commodity prices; development, efficacy and adoption of new or competing
technologies; changing or divergent preferences and expectations of our
stakeholders; events giving rise to adverse reputational impacts; changes to
the assumptions regarding the recoverable value of our tangible and intangible
assets; inadequate estimates of resources and reserves; changes in
environmental scenarios and related regulations, including, without
limitation, transition risks and the evolution and development of the global
transition to a low carbon economy; recovery rates and other operational
capabilities; timing, quantum and nature of certain acquisitions and
divestments; delays, overruns or other unexpected developments in connection
with significant projects; the ability to successfully manage the planning and
execution of closure, reclamation and rehabilitation of industrial sites;
health, safety, environmental or social performance incidents; labour
shortages or workforce disruptions; natural catastrophes or adverse geological
conditions, including, without limitation, the physical risks associated with
climate change; effects of global pandemics and outbreaks of infectious
disease; the outcome of litigation or enforcement or regulatory proceedings;
the effect of foreign currency exchange rates on market prices and operating
costs; actions by governmental authorities, such as changes in taxation or
laws or regulations or changes in the decarbonisation policies and plans of
other countries; breaches of Glencore's policy framework, applicable laws or
regulations; the availability of sufficient credit and management of liquidity
and counterparty risks; changes in economic and financial market conditions
generally or in various countries or regions; political or geopolitical
uncertainty; and wars, political or civil unrest, acts of terrorism, cyber
attacks or sabotage.

Readers, including, without limitation, investors and prospective investors,
should review and consider these risks and uncertainties (as well as the other
risks identified in this document) when considering the information contained
in this document. Readers should also note that the high degree of uncertainty
around the nature, timing and magnitude of climate-related risks, and the
uncertainty as to how the energy transition will evolve, makes it particularly
difficult to determine all potential risks and opportunities and disclose
these and any potential impacts with precision. Neither Glencore nor any of
its affiliates, associates, employees, directors, officers or advisers,
provides any representation, warranty, assurance or guarantee as to the
accuracy, completeness or correctness, likelihood of achievement or
reasonableness of any forward-looking information contained in this document
or that the events, results, performance, achievements or other outcomes
expressed or implied in any forward-looking statements in this document will
actually occur. Glencore cautions readers against reliance on any
forward-looking statements contained in this document, particularly in light
of the long-term time horizon which this document discusses in certain
instances and the inherent uncertainty in possible policy, market and
technological developments in the future.

No statement in this document is intended as any kind of forecast (including,
without limitation, a profit forecast or a profit estimate), guarantee or
prediction of future events or performance and past performance cannot be
relied on as a guide to future performance.

Except as required by applicable rules or laws or regulations, Glencore is not
under any obligation, and Glencore and its affiliates expressly disclaim any
intention, obligation or undertaking, to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. This document shall not, under any circumstances, create any
implication that there has been no change in the business or affairs of
Glencore since the date of this document or that the information contained
herein is correct as at any time subsequent to its date.

Sources

Certain statistical and other information included in this document is sourced
from publicly available third-party sources. This information has not been
independently verified and presents the view of those third parties, and may
not necessarily correspond to the views held by Glencore and Glencore
expressly disclaims any responsibility for, or liability in respect of, and
makes no representation or guarantee in relation to, such information
(including, without limitation, as to its accuracy, completeness or whether it
is current). Glencore cautions readers against reliance on any of the
industry, market or other third-party data or information contained in this
document.

Information preparation

In preparing this document, Glencore has made certain estimates and
assumptions that may affect the information presented. Certain information is
derived from management accounts, is unaudited and based on information
Glencore has available to it at the time. Figures throughout this document are
subject to rounding adjustments. The information presented is subject to
change at any time without notice and we do not intend to update this
information except as required.

This document contains alternative performance measures which reflect how
Glencore's management assesses the performance of the Group, including results
that exclude certain items included in our reported results. These alternative
performance measures should be considered in addition to, and not as a
substitute for, or as superior to, measures of financial performance or
position reported in accordance with IFRS. Such measures may not be uniformly
defined by all companies, including those in Glencore's industry. Accordingly,
the alternative performance measures presented may not be comparable with
similarly titled measures disclosed by other companies. Further information
can be found in our reporting suite available at glencore.com/publications.

For further information on the basis of our approach and the definitions of
certain non-financial metrics, refer to the 2024 Basis of Reporting, which is
available on our website at glencore.com/publications.

Subject to any terms implied by law which cannot be excluded, Glencore accepts
no responsibility for any loss, damage, cost or expense (whether direct or
indirect) incurred by any person as a result of any error, omission or
misrepresentation in information in this document.

Other information

The companies in which Glencore plc directly and indirectly has an interest
are separate and distinct legal entities. In this document, "Glencore",
"Glencore group" and "Group" are used for convenience only where references
are made to Glencore plc and its subsidiaries in general. These collective
expressions are used for ease of reference only and do not imply any other
relationship between the companies. Likewise, the words "we", "us" and "our"
are also used to refer collectively to members of the Group or to those who
work for them. These expressions are also used where no useful purpose is
served by identifying the particular company or companies.

 

 

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