Mining giant Glencore has reported a net income attributable to equity holders of $17.32bn for the year ended 31 December 2022, marking a 248% increase from $4.97bn a year ago.
This gain was largely driven by surging coal prices amid the Russia-Ukraine conflict.
The firm’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 60% to $34.06bn in 2022 from $21.32bn in 2021, benefitting from ‘unprecedented developments’ in the global energy markets.
Its net debt at the end of December 2022 stood at $75m, down from $6bn in the prior year. Revenue rose 26% to $255.98bn from $203.75bn.
Glencore CEO Gary Nagle said: “The global pandemic, recovery from it and years of underinvestment, followed by conflict in Europe, exposed pre-existing vulnerabilities in energy security and supply chains, underpinning the generally high and volatile 2022 commodity price environment, which enabled the group to generate record profitability for the year.”
The Switzerland-based miner and commodity trader also announced a $7.1bn shareholder payout.
It includes $5.1bn in dividends, a $1.5bn share repurchase programme, and a $500m top-up payment.
Looking ahead to this year, the miner believes that inflation will remain a risk.
Nagle added: “China’s reopening, however, together with a continued global focus on energy security and decarbonisation/electrification, mean that demand for many of our commodities is likely to remain healthy while supply constraints persist and inventories remain relatively low.
“Recent government policies such as the US Inflation Reduction Act and the EU’s proposed Green Deal Industrial Plan demonstrate the growing need for critical raw materials through to the end of the decade and beyond, necessitating fresh investment in both primary supply and recycling.”
Meanwhile, Reuters reported that Glencore is looking to offload its 23% stake in Peruvian miner Volcan.
Citing a regulatory filing, the news agency stated that Volcan has received a letter from Glencore in this regard.