Glencore Xstrata reports 2013 revenue growth - CNBC Africa

Glencore Xstrata reports 2013 revenue growth

Earnings

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Ivan Glasenberg is the chief executive officer (CEO) of Glencore Xstrata. PHOTO: Forbes

The global diversified natural resource company saw revenue increase to 232.6 billion US dollars in 2013 from 214.4 billion US dollars in 2012, prior to the acquisitions of Xstrata and Viterra.

“2013 was a landmark year for Glencore with the completion of our merger with Xstrata. Robust structures and procedures were established, that allowed our operations to be quickly and smoothly combined. A bottom up review of all operating assets and projects also formed an important component of the integration process, resulting in the suspension of more than 40 projects and the identification of other assets for potential sale,” said [DATA GLN:Glencore Xstrata]’s chief executive, Ivan Glasenberg.

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“We remain committed to ensuring that key projects are delivered in the best possible manner, while maintaining a strong focus on cost control. Our efforts to improve the efficiency and productivity of the enlarged industrial asset base continue to present opportunities to accrue further savings. Separately, we are also exploring the possibility of creating further value via closer cooperation and interaction in specific areas where there is significant operational overlap with third party producers.”

Adjusted earnings before interest, taxation, depreciation and amortisation rose 76 per cent from 5.9 billion US dollars in 2012 to 10.4 billion US dollars in 2013.

The company also reported a net loss attributable to equity holders of 7.4 billion US dollars in 2013 from a net income of 1.0 billion US dollars in 2012. Earnings per share, pre-significant items, decreased by 25 per cent from 0.44 US dollars to 0.33 US dollars.

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“Glencore remains the only genuinely diversified natural resources company in respect of business activity, commodity and geography. Our financial performance in 2013 reflects this, with a consistent pro forma EBITDA and operational cash flow performance compared to 2012,” Glasenberg said.

“As we look ahead to 2014, we continue to see healthy demand growth in all our key commodities, underpinned by the long term trend of urbanisation in emerging markets and parts of the developed world returning to trend growth.”

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