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Glencore Inter (GLEN)

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Tuesday 14 June, 2011

Glencore Inter

First Quarter 2011 Interim Management Statement

RNS Number : 3640I
Glencore International PLC
14 June 2011
 



NEWS RELEASE

 

Baar, 14 June 2011

 

First Quarter 2011 Interim Management Statement

 

 

FINANCIAL Highlights

 

• Revenues were $ 44.2 billion over the first quarter, up 39% compared to the first quarter 2010.

• Adjusted EBITDA was $ 2.0 billion, up 46% compared to the first quarter 2010.

• Adjusted EBIT was $ 1.8 billion, up 45% compared to the first quarter 2010.

• Glencore net income was $ 1.3 billion, up 47% compared to the first quarter 2010.

Cash generated by operating activities before working capital for the first quarter was $ 1.5 billion, up 47% compared to the first quarter 2010.

• Funds from operations for the first quarter were $ 1.1 billion, up 42% compared to the first quarter 2010.

 

Key financial highlights were as follows:

 

US $ million

Q1

2011

Q1

2010

Full year
2010





Revenues

44 226

31 729

144 978

Adjusted EBITDA¹

2 027

1 389

6 201

Adjusted EBIT²

1 761

1 214

5 290

Glencore net income³

1 301

886

3 799

Cash generated by operating activities before working capital changes

1 494

1 017

4 234

Funds from operations (FFO)4

1 090

770

3 333


¹ Adjusted EBITDA is revenue less cost of goods sold, less selling and administrative expenses, plus share of income from associates and joint controlled entities, plus dividend income, plus depreciation and amortisation. No exceptional items were recorded in Adjusted EBITDA.

² Adjusted EBIT is Adjusted EBITDA less depreciation and amortisation. No exceptional items were recorded in Adjusted EBIT.

³ Glencore net income consists of income before attribution of $ 1,211 million (2010: $ 1,319 million) less attribution to non controlling interests of $ 118 million (2010: $ 215 million), plus exceptional items of $ 208 million (2010: $ - 218 million). 2011 exceptional items comprise a $ 197 million mark to market loss on own use sale contracts related to Prodeco (refer page 46 of Annual Report 2010) and an $ 11 million impairment charge, while 2010 primarily comprises a net fair value revaluation gain of $ 313 million which arose on the first time consolidation of Vasilkovskoje Gold, offset by a $ 95 million expense related to the Prodeco call option.

4 Please refer to page 8.

 

 

 

headline results

 

Glencore's operating and financial performance over the first quarter of 2011 benefitted from improving market conditions, continuing the trend of the final months of 2010. Adjusted EBIT by business segment was as follows:

 

US $ million

Marketing

Industrial

Q1 2011

 Adjusted
EBIT


Marketing

Industrial

Q1 2010

Adjusted
EBIT











Metals and Minerals

263

508

771

44%

331

336

667

55%

Energy Products

338

96

434

25%

141

98

239

20%

Agricultural Products

90

4

94

5%

44

5

49

4%

Corporate and other

-16

478

462

26%

-25

284

259

21%

Total

675

1086

1761

100%

491

723

1214

100%

 

 

Marketing Activities

Over the first quarter of 2011, Glencore's marketing operations in many commodities benefitted from healthy global demand and trade flows, as well as the additional arbitrage opportunities brought on by increased market volatility and tighter supply conditions. In particular, the oil division reported substantially improved results following a challenging 2010, allowing the Energy Products' segment to even improve on 2009's average quarterly performance. Both grain and oil sales volumes were meaningfully ahead of the comparable quarter in 2010, while contributions for the Energy and Agricultural Products' segments increased by 140% and 105% respectively. The Metals and Minerals segment was 20% lower, following a particularly strong first quarter of 2010. First quarter overall marketing adjusted EBIT was $ 675 million, up 37% compared to the first quarter 2010, reflecting the strength of our diversified business model and product mix.

 

Industrial Activities

Glencore's consolidated Industrial Activities and its associates delivered substantially improved performance during the first quarter 2011. Adjusted EBIT contributions from Industrial Activities were $ 1.1 billion, up 50% compared to the first quarter 2010. This performance was driven by the stronger commodity price environment, as well as operational enhancements and production increases at many of our operations. For example, compared to the first quarter 2010, Katanga's copper production increased by 50%, Prodeco's coal production by 33% and Kazzinc's gold production by 87%.

 

Outlook

Glencore remains well positioned for 2011. Despite the recent commodity price volatility, the Directors believe that underlying fundamentals across many of our key commodities are supportive and that economic activity and demand for commodities remains healthy. In addition, Glencore continues to focus on the many production expansion projects underway across its industrial asset portfolio. These are expected to result in increased production capacity for the balance of 2011 and beyond, and the transform-ation to and establishment of many high-quality, large-scale, long-life and low cost positioned assets. As previously guided, the Directors intend to declare an interim dividend of $ 350 million on 25 August 2011 concurrent with the publication of the interim results for the six months ended 30 June 2011.

 

Glencore's Chief Executive Officer, Ivan Glasenberg, commented:

"The IPO saw considerable support from equity investors for Glencore's business model, strategy and ability to deliver superior returns over the long term. Our first quarter results show that Glencore continues to deliver a strong return on equity, emphasising the unique benefits of having large scale marketing and industrial asset activities spread across a diversified commodity base."

 

About Glencore International plc

Glencore is one of the world's leading integrated producers and marketers of commodities, headquartered in Baar, Switzerland, and listed on the London and Hong Kong Stock Exchanges. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of Metals and Minerals, Energy Products and Agricultural Products.

 

For further information, please contact:

 

Marc Ocskay (Investors)                                          Simon Buerk (Media)                                               Finsbury (Media)

t:   +41 (0)41 709 2475                                           t:   +41 (0)41 709 2679                                           Guy Lamming

e:   marc.ocskay@glencore.com                               m: +41 (0)79 955 5384                                           Charles Watenphul

                                                                                e:   simon.buerk@glencore.com                               Dorothy Burwell

                                                                                                                                                                t: +44 (0)20 7251 3801

 

website: www.glencore.com

 

 

 

 

 

 

 

 

Metals and Minerals

 

 

Production data

 

Production ('000)¹


Using feed from own sources

Using feed from third party sources

Q1

 2011

Total

 Using feed from own sources

Using feed from third party sources

Q1

 2010

Total









Kazzinc








Zinc metal

MT

58.4

15.9

74.3

52.9

21.4

74.3

Lead metal²

MT

9.0

17.8

26.8

6.4

14.4

20.8

Copper metal³

MT

11.4

0.5

11.9

13.4

0.3

13.7

Gold

toz

86

8

94

46

4

50

Silver

toz

1 250

702

1 952

1 229

366

1 595

Katanga








Copper metal³

MT

18.4

-

18.4

12.5

-

12.5

Cobalt

MT

0.6

-

0.6

0.9

-

0.9

Mopani








Copper metal

MT

24.5

25.3

49.8

18.6

28.1

46.7

Cobalt

MT

0.2

0.1

0.3

0.2

0.1

0.3

Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme)





Zinc metal

MT

7.6

30.4

38.0

6.3

25.4

31.7

Zinc concentrates

DMT

118.8

-

118.8

43.8

-

43.8

Lead metal

MT

2.5

-

2.5

4.0

-

4.0

Lead concentrates

DMT

15.9

-

15.9

8.3

-

8.3

Tin concentrates

DMT

0.9

-

0.9

0.9

-

0.9

Silver metal

toz

148

-

148

231

-

231

Silver contained in concentrates

toz

2 175

-

2 175

1 833

-

1 833

Other Copper (Cobar, Pasar, Punitaqui)








Copper metal

MT

-

42.0

42.0

-

35.6

35.6

Copper concentrates

DMT

36.5

-

36.5

53.1

-

53.1

Alumina/Aluminium (Sherwin)








Alumina

MT

-

367

367

-

348

348

Ferroalloys/Nickel/Cobalt (Murrin Murrin)







Nickel metal

MT

7.2

0.3

7.5

7.7

0.1

7.8

Cobalt

MT

0.4

0.1

0.5

0.6

-

0.6









Total Zinc contained

MT

126.9

46.3

173.2

81.8

46.8

128.6

Total Copper contained

MT

64.7

67.8

132.5

59.8

64.0

123.8

Total Lead contained

MT

20.1

17.8

37.9

14.3

14.4

28.7

Total Tin contained

MT

0.4

-

0.4

0.5

-

0.5

Gold (incl. Silver equivalents)4

toz

169

24

193

96

10

106

Total Alumina

MT

-

367

367

-

348

348

Total Nickel

MT

7.2

0.3

7.5

7.7

0.1

7.8

Total Cobalt

MT

1.2

0.2

1.4

1.7

0.1

1.8


¹ Controlled industrial assets only. Production is on a 100% basis.

² Lead metal includes lead contained in lead concentrates.

³ Copper metal includes copper contained in copper concentrates and blister copper.

4 Gold/Silver conversion ratio of 1/43.42 and 1/65.62 for the first quarter 2011 and 2010 respectively based on average quarterly prices.

 

 

 

 

 

 

Financial highlights

 

US $ million

Q1 2011

Q1 2010




Adjusted EBITDA - Industrial activities¹

704

487

Adjusted EBIT - Industrial activities¹

508

336

Capital expenditure

231

187




Selected commodity prices



Average LME (cash) zinc price ($/MT)

2 395

2 287

Average LME (cash) copper price ($/MT)

9 633

7 247

Average LME (cash) nickel price ($/MT)

26 871

20 071

Average gold price ($/toz)

1 388

1 110


¹ Including share of income from associates, excluding share of income from Xstrata and variable bonus pool.

 

 

operational HIGHLIGHTS

 


Total zinc production at Kazzinc over the first quarter 2011 was consistent with the first quarter 2010. Zinc production using feed from own mining sources increased 10% over the comparable quarter mainly due to increased ore processed from the Shaimerden deposit. Gold production is ramping up with an 87% increase in own feed production over the comparable prior quarter. A ball mills commissioning issue at the new Vasilkovskoje Gold operation was identified at an early stage with the gearboxes since replaced. Reinforcement of the foundations under the mills is expected to be completed during the summer period, during which time, overall production capacity and pace of ramp-up will be impacted. The commissioning of the new copper smelter is scheduled for summer 2011, which will enable Kazzinc to produce copper metal in the future, as well as recover additional expected gold from copper concentrate and blister.

 


Katanga's first quarter 2011 copper production increased by 50% compared to the corresponding 2010 period. The dewatering of the KOV pit is now complete, which enabled the mining of 546 kt of ore at an average copper grade of 5.65% during the first quarter 2011. Overall, mining from all locations is well ahead of schedule with 1,056 kt of ore mined at a grade of 4.51%, resulting in contained copper in ore of 47.6 kt (at an annualised rate of 190 kt). This has allowed Katanga to significantly increase its strategic ore stockpiles. Total ore milled at the KTC concentrator amounted to 546 kt, which represents a 43% increase year on year. With the refurbishment and commissioning of new mills, associated feed systems and flotation cells, ore processing capacity has been increased to 7.7 million tonnes per annum which is in line with the life of mine milling capacity requirements through to 2014. Total copper produced for the first quarter 2011 was 18.4 kt. Katanga's progressive ramp-up has continued subsequent to quarter end, together with consistent improvements in both the concentrator and the processing plant. For further information please visit www.katangamining.com.

 


Total copper production at Mopani increased by over 7%, while production using feed from own sources increased by over 32% owing to the increased levels of electro refining production.

 


The increase of other zinc concentrate production of 171% related primarily to the reopening of Los Quenuales' Iscaycruz mine, which was only restarted in the second quarter of 2010. 

 


Mutanda is not included in the production table above on account of its associate status. However, under Glencore operational control, it reached current nameplate capacity of 20 kt of annualised copper cathode in January and produced 5 kt of copper metal during the first quarter of 2011. Copper concentrate production was 6 kt. Total contained cobalt, incorporating both concentrate and cobalt hydroxide, was 2 kt. A second SXEW circuit was completed in early April bringing Mutanda's annualised production capacity to 40 kt of copper cathode. Mutanda is further ramping up to reach an annualised capacity of 60 kt of copper cathode by the end of August 2011 and an annualised 110 kt by the end of the first quarter of 2012. Glencore has a life of mine off-take agreement of all copper and cobalt produced by Mutanda with market based pricing terms.

 

Energy Products

 

 

Production data

 

Production ('000 MT)

 

Own

Buy-in

Coal

Q1 2011

Total

 

Own

Buy-in

Coal

Q1 2010

Total








Thermal Coal







Prodeco

3 842

23

3 865

2 897

129

3 026

South African Coal

2 023

0

2 023

2 589

212

2 801

Total

5 865

23

5 888

5 486

341

5 827

 

 

 

Financial highlights

 

US $ million

Q1 2011

Q1 2010




Adjusted EBITDA - Industrial activities¹

143

109

Adjusted EBIT - Industrial activities¹

96

98

Capital expenditure

223

132




Selected commodity prices



Average Prodeco realised price ($/MT)²

91

74

Average South African Coal realised export price ($/MT)

103

80

Average South African Coal realised domestic price ($/MT)

43

37

Average oil price - WTI ($/bbl)

95

79


¹ Including share of income from associates, excluding share of income from Xstrata and variable bonus pool.

² As of 31 March 2011, 27 million tonnes had been sold forward at an average price of $ 90 per ton.

 

 

operational HIGHLIGHTS

 


Total consolidated own coal production increased by 7% compared to the first quarter 2010.

 


Own coal production increased at Prodeco by 33%. This was due to the progression of the large-scale expansion program and a recovery from the severe rainfalls which hampered production in 2010. As previously advised, Prodeco is anticipating some delay in the delivery of mining equipment ordered from Japan, following the impact of the Tsunami. The current impact assessment of this delay shows a potential ramp-up production shortfall against plan of approximately 600-700 kt in 2011.

 


In South Africa, the Shanduka coal operation is currently not mining at the Leeuwfontein and Lakeside Collieries (both on care and maintenance), accounting for the reduction of 22% in overall coal production compared to the first quarter 2010. However, export sales were more moderately down over the comparable period from 496 kt to 445 kt, due to lower rail availability.

 


All the development wells for the Aseng oil field have been drilled and completed, and are now ready for production and injection. The Floating Production, Storage and Off-take vessel (FPSO), under construction in Singapore, remains on schedule with a sailaway date expected in mid-August. Operations then include laying the infield and subsea infrastructure, including flowlines and umbilicals, with first oil production planned for early 2012.

 


Subsea development drilling and completions for the Alen oil field will commence in August 2011 with the arrival of the Atwood Hunter semi-submersible drilling rig and the shallow water wellhead platform. These are expected to be shipped to the field from Louisiana in August. First condensate production is planned for late 2013.

 


Net E&P losses of $ 6 million (2010: $ 5 million) were incurred during the quarter. These relate to expenditures not capitalised, and are included in the Adjusted EBITDA/EBIT numbers above.

Agricultural Products

 

 

Production data

 

Production ('000 MT)

Q1 2011

Q1 2010




Farming¹

27

27

Crushing

350

395

Biodiesel

135

68

Rice Milling

46

48

Wheat Milling

84

90

Total

642

628


¹ No crops harvested in the first quarter in Russia, Kazakhstan, Ukraine and Australia due to normal seasonality.

 

 

 

Financial highlights

 

US $ million

Q1 2011

Q1 2010




Adjusted EBITDA - Industrial activities¹

18

16

Adjusted EBIT - Industrial activities¹

4

5

Capital expenditure

28

13




Selected commodity prices



Average CBOT wheat price (US¢/bu)

787

496

Average NYMEX sugar # 11 price (US¢/lb)

31

25


¹ Including share of income from associates, excluding share of income from Xstrata and variable bonus pool.

 

 

 

operational HIGHLIGHTS

 

Compared to the first quarter 2010, total production, excluding farming, increased by 2.3% to 615 kt.

 


A near doubling of biodiesel production in the first quarter 2011 compared to the first quarter 2010 was mainly due to the acquisition of the Biopetrol Group in the first half of 2010. This increase was offset by an 11% reduction in crushing outputs, mainly attributable to timing differences associated with the annual maintenance shut down at the Moreno operations. On a year to date basis, crushing performance remains on budget.

 


The construction of the 500 kt multiseed crushing plant in Hungary is nearing completion (first production expected in the fourth quarter 2011). This project accounted for more than a third of the capital expenditure within the Agricultural Products' segment. In addition, the construction of a large scale soybean crushing plant in Timbues Argentina, in conjunction with our joint venture partners, is on schedule and will add 2 million tonnes (Glencore's share) of additional crushing capacity following commissioning expected in May 2012.

 

FINANCIAL POSITION

 

• Glencore shareholders' funds up 5% from $ 19.6 billion as at 31 December 2010 to $ 20.6 billion as at 31 March 2011.

• Last 12 months' FFO to net debt improved to 23.4%, up from 22.6%.

• Net debt to last 12 months' Adjusted EBITDA improved to 2.29 times compared to 2.38 times.

 


31 March

2011

31 December

2010




Working capital ratios:



Current ratio (times)

1.19

1.20

Equity, gearing and coverage ratios:



Net debt to net debt plus Glencore shareholders' funds (%)

43.1

42.9

FFO to Net debt (%)

23.4

22.6

Net debt to Adjusted EBITDA (times)

2.29

2.38

Adjusted EBITDA to net interest (times)

8.77

6.91

 

 

 

US $ million

31 March

2011

31 December 2010




Total assets

83 589

79 787

Glencore shareholders' funds

20 617

19 613

Gross debt¹

32 621

30 616

Net debt¹

15 641

14 756

Current capital employed²

21 547

19 588


¹ Please refer to page 8.

² Current capital employed is current assets, presented before assets held for sale, less accounts payable, other financial liabilities and income tax payable.

 

 

 

Movement in net debt

 

US $ million

31 March 2011



Cash generated from operations before working capital changes

1 494

Net interest paid

- 271

Tax paid

- 137

Dividends received from associates

4

Funds from operations

1 090



Non current advances and loans

- 43

Purchase and sale of investments

- 206

Purchase and sale of property, plant and equipment

- 460

Working capital changes, excluding readily marketable inventory movements

- 663

Other movements

2

Cash movement in net debt

- 280

Foreign currency revaluation movements and other non cash items

- 337

Departed shareholder redemptions

- 268

Non cash movement in net debt

- 605

Total movement in net debt

- 885

Net debt, beginning of period

14 756

Net debt, end of period

- 15 641

Comprising:


Non current borrowings

- 18 657

Current borrowings:


  Committed syndicated revolving credit facility

515

  Committed secured inventory and receivables backed facilities

4 313

  Xstrata secured bank loans

2 294

  2011 Eurobonds

809

  US commercial paper

433

  Other

5 342

Total current borrowings

- 13 706

Commodities sold with agreement to repurchase

- 258

Gross debt

- 32 621

Cash and cash equivalents and marketable securities

1 461

Readily marketable inventories

15 519

Net debt

- 15 641

 

 

Borrowings

Glencore's main refinancing requirements over the next twelve months relate to the secured funding facilities which ordinarily require extension/renewal each year. However, these tend to be routine given the underlying strong collateral and their modest amounts in the context of our overall balance sheet and funding/liquidity levels. The Xstrata secured bank loans are expected to be refinanced shortly (second quarter) with a new 2 year $ 2.7 billion equivalent facility. As at 31 March 2011, Glencore had available committed undrawn credit facilities and cash amounting to $ 4.3 billion (comfortably ahead of the $ 3 billion minimum target threshold) which has recently been significantly enhanced following the refinancing and increase of the committed revolving credit facilities and the successful IPO completion in May 2011.

 

 

Notional allocation of debt and interest expense

Glencore's indebtedness is primarily arranged centrally, with the proceeds then applied to marketing and industrial activities as required. Glencore does not allocate borrowings or interest to its three operating segments. However, to assist investors in the -assessment of overall performance and underlying value contributors of its integrated business model, Glencore notionally -allocates its borrowings and interest expense between its marketing and industrial activities as shown below. The allocation is a company estimate and is unaudited. Further details as to the methodology used can be found in the Annual Report 2010.

 

US $ million

Marketing

 activities

Industrial

 activities

Total





Adjusted EBIT - Q1 2011

675

1 086

1 761

Interest expense allocation

- 87

- 227

- 314

Interest income allocation

0

83

83

Allocated profit before tax - Q1 2011

588

942

1 530

Allocated borrowings - 31 March 20111

14 239

18 382

32 621

Allocated borrowings - 31 December 2010

12 835

17 781

30 616


1
Allocated borrowings in Marketing activities increased in line with the higher working capital levels during the quarter, primarily driven by the higher -commodity
prices. Since quarter end, this trend has reversed consistent with the generally lower commodity price environment.

 

 

 

Subsequent events Affecting OUR FINANCIAL POSITION

 


In April 2011, Glencore agreed to acquire additional stakes in Kazzinc. These purchases will increase Glencore's ownership from 50.7% to 93.0% for a total transaction consideration of $ 3.2 billion. Subject to the receipt of applicable regulatory approvals which is expected as early as July 2011, consideration for these purchases will be settled through the issuance of $ 1 billion of ordinary shares at the IPO price, equivalent to 116.8 million shares, such issuance expected to occur upon satisfaction of all applicable conditions precedent and $ 2.2 billion in cash expected to be paid in tranches between October and December 2011.

 


In May 2011, Glencore replaced the previous 364 day $ 1,375 million and $ 515 million committed revolving credit facilities with two new 364 day committed revolving credit facilities for $ 2,925 million and $ 610 million respectively, both with a one year term extension option at the borrower's discretion. In addition, Glencore extended the final maturity of $ 8,340 million of the $ 8,370 million medium term revolver for a further year to May 2014. In aggregate, the new facilities represent an overall increase in committed available liquidity of $ 1,645 million.

 


In May 2011, Glencore International plc was admitted to trading on the London and Hong Kong Stock Exchanges in what was the largest ever initial public offering (IPO) of ordinary shares on the premium listing segment of the London Stock Exchange and the first simultaneous London primary and Hong Kong secondary IPO. The offer represents 17% of Glencore International plc's post-IPO issued share capital with an offer size of $ 10 billion (prior to exercise of the overallotment option), comprising a primary component of approximately $ 7.9 billion and a secondary sale by existing shareholders of approximately $ 2.1 billion, solely to fund expected shareholder tax liabilities triggered upon listing.

 


In June 2011, a subsidiary of Glencore International plc agreed to purchase 100% of the common equity in Sable Zinc Kabwe Limited, a copper cathode and cobalt carbonate producer based in Zambia, from Metorex Limited for a cash consideration of ZAR 190 million (equivalent to approximately $ 28 million), subject to closing conditions.

 

 

Condensed consolidated statement of income

for the three months ended 31 MArch

(Unaudited)

 

US $million


2011

2010





Revenue


44 226

31 729

Cost of goods sold


-42 791

-30 627

Selling and administrative expenses


-229

-235

Share of income from associates and jointly controlled entities


554

345

Other (expense)/income - net


-140

384

Dividend income


1

2

Interest income


83

71

Interest expense


-314

-257

Income before income taxes and attribution


1 390

1 412

Income tax expense


-179

-93

Income before attribution


1 211

1 319





Attribution to hybrid profit participation shareholders


0

-125

Attribution to ordinary profit participation shareholders


0

-684





Income for the period


1 211

510





Attributable to:




Non controlling interests


118

215

Equity holders


1 093

295

 

 

 

Condensed Consolidated statement of comprehensive income

for the three months ended 31 March

(Unaudited)

 

US $million


2011

2010





Income for the period


1 211

510

Exchange gain on translation of foreign operations


15

3

(Loss)/gain on cash flow hedges


-61

-106

Gain/(loss) on available for sale financial instruments


257

-486

Share of comprehensive (loss)/income from associates and jointly controlled entities


-34

85

Income tax relating to components of other comprehensive income


5

0

Net income/(loss) recognised directly in equity


182

-504

Total comprehensive income


1 393

6





Attributable to:




Non controlling interests


122

215

Equity holders


1 271

-209

 

 

 

 

Condensed Consolidated statement of financial position

as at 31 march 2011 and 31 December 2010

(Unaudited)

 

US $million


2011

2010





Assets




Non current assets




Property, plant and equipment


12 294

12 088

Goodwill


157

0

Investments in associates and jointly controlled entities


17 366

16 766

Other investments


2 818

2 438

Advances and loans


3 898

3 830

Deferred tax assets


310

369



36 843

35 491

Current assets




Inventories


18 912

17 393

Accounts receivable


19 708

18 994

Other financial assets


6 537

5 982

Prepaid expenses and other assets


128

118

Marketable securities


53

66

Cash and cash equivalents


1 408

1 463



46 746

44 016

Assets held for sale


0

280



46 746

44 296

Total assets


83 589

79 787





Equity and liabilities




Net assets attributable to profit participation shareholders,
non controlling interests and equity holders


 

 

 

 

Share capital


46

46

Reserves and retained earnings


20 571

5 378

Non controlling interests


3 000

2 894



23 617

8 318

Hybrid profit participation shareholders


0

1 823

Ordinary profit participation shareholders


0

12 366

Total net assets attributable to profit participation shareholders,
non controlling interests and equity holders


 

23 617


22 507

Other non current liabilities




Borrowings


18 657

18 251

Deferred income


157

164

Deferred tax liabilities


1 270

1 308

Provisions


725

719



20 809

20 442

Current liabilities




Borrowings


13 706

11 881

Commodities sold with agreements to repurchase


258

484

Accounts payable


17 032

16 145

Other financial liabilities


7 937

8 066

Income tax payable


230

217



39 163

36 793

Liabilities held for sale


0

45



39 163

36 838

Total equity and liabilities


83 589

79 787

 

 

 

Condensed Consolidated statement of cash flows

for the three months ended 31 March

(Unaudited)

 

US $million


2011

2010





Operating activities




Income before income taxes and attribution


1 390

1 412

Adjustments for:




Depreciation and amortisation


266

175

Share of income from associates and jointly controlled entities


-554

-345

Decrease in non current provisions


-2

-2

Unrealised mark to market movements on other investments


-38

-31

Impairments and other non cash items - net


201

-378

Interest expense - net


231

186

Cash generated by operating activities before working capital changes


1 494

1 017

Working capital changes




Decrease in marketable securities


26

10

(Increase)/decrease in accounts receivable1


-1 343

1 279

(Increase)/decrease in inventories


-1 532

745

Increase/(decrease) in accounts payable2


1 025

-1 812

Total working capital changes


-1 824

222

Income tax paid


-137

-77

Interest received


35

31

Interest paid


-306

-207

Net cash (used)/generated by operating activities


-738

986

Investing activities




Payments of non current advances and loans


-43

-142

Acquisition of subsidiaries


0

-203

Purchase of investments


-209

-267

Proceeds from sale of investments


3

14

Purchase of property, plant and equipment


-487

-335

Proceeds from sale of property, plant and equipment


27

110

Dividends received from associates


4

6

Net cash (used) by investing activities


 -705

-817

Financing activities




Proceeds from issuance of Euro and Swiss Franc bonds


237

1 709

Redemption of Perpetual bonds


-292

0

Proceeds from Convertible bonds


0

97

Repayment of other non current borrowings


-7

-49

Net proceeds from/(repayment of) current borrowings


1 673

-1 128

Payment of profit participation certificates


-206

-221

Dividend to non controlling interests


-17

0

Net cash generated by financing activities


1 388

408

(Decrease)/increase in cash and cash equivalents


-55

577

Cash and cash equivalents, beginning of period


1 463

860

Cash and cash equivalents, end of period


1 408

1 437


1

Includes movements in other financial assets and prepaid expenses and other assets.

2 Includes movements in other financial liabilities.

 



 

 

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or -subscribe for any securities. The making of this announcement does not constitute a recommendation regarding any securities.

 

This announcement may include statements that are, or may be deemed to be, "forward looking statements", beliefs or opinions, including statements with respect to the business, financial condition, results of operations, prospects, strategies and plans of Glencore. These forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore's control and all of which are based on the Glencore board of directors' current beliefs and expectations about future events. These forward looking statements may be identified by the use of forward looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "will", "could", or "should" or in each case, their negative or other variations thereon or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts. Forward looking statements may and often do differ materially from actual results. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Services Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

 

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing Glencore. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward looking statements. Forward looking statements speak only as of the date of this announcement.

 

The financial information contained in this results announcement has been prepared to comply with the terms of Glencore's listed debt and should not be relied on for any other purpose.

 

No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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