Glencore expands and extends share buy-back program

Glencore (LON: GLEN) is increasing its share buy-back program by up to an additional US$1 billion.

The commodities giant has already purchased 230.2 million of its own shares valued at US$939.1 million under an existing program.

The duration of the program has been extended to Feb. 20 2019.

In early August, Glencore reported first-half results that included a 13% increase in net income to US$2.8 billion and a 23% increase in adjusted EBITDA to US$8.3 billion, and CEO Ivan Glasenberg emphasized the company’s focus on delivering value to shareholders.

“Cash generation remains strong, with FFO [funds from operations] up 8% to US$5.6 billion and our balance sheet healthy, with net debt of US$9 billion,” Glasenberg stated in a press release. “In addition to the US$2.85 billion of shareholder distributions announced earlier this year, we recently announced a US$1 billion buy-back programme.

“While broader market conditions are likely to remain volatile, confidence in our business prospects and current share trading levels point to near-term focus on deleveraging and shareholder returns/buybacks funded through cash generation. We remain focused on creating value for shareholders through the disciplined allocation of long-term capital.”

Large share buy-backs seem to be in vogue this year. Earlier this month, Rio Tinto (LON: RIO) said it plans to buy back shares worth US$3.2 billion. The funds were generated from the sale of coal assets. Rio’s latest buy-back plan comes on top of the company’s existing buy-back program, of which US$1.7 billion in shares remain to be purchased before the end of February 2019.


Be the first to comment on "Glencore expands and extends share buy-back program"

Leave a comment

Your email address will not be published.


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.