GLNCY Glencore Plc (PK)

Glencore PLC on Wednesday reported record profit for its marketing and industrial businesses for 2022 and said demand for many of its commodities is likely to remain healthy given the re-opening of China following coronavirus-related lockdowns, while supply constraints persist and inventories remain relatively low. Here's what the Anglo-Swiss commodity mining and trading company had to say:

On industrials:

"Industrial Assets adjusted Ebitda $27.3 billion, up 59%, primarily reflecting a $13.0 billion increase from energy products, in line with significantly higher coal prices, as well as the Cerrejon partner buy-out contribution."

"Metals $9.3 billion, down $2.7 billion, reflecting higher costs and lower volumes; Energy $18.6 billion, up $13.0 billion (+232%)."

"Unit cost results: Cu 80c/lb (+13c/lb y/y); Zn 38c/lb (+42c/lb y/y, whereby 2022 is net of 23c/lb of non-cash inventory adjustments); Ni 631c/lb (+177c/lb y/y); coal $79/t ($166/t margin)."

On marketing:

"Marketing adjusted EBIT $6.4 billion, up 73% y/y."

"Energy adjusted EBIT: $5.2 billion (+273%), as already tight post-pandemic energy markets were jolted by significant dislocation, generating extreme volatility in oil, refining margins, freight, gas and coal, with prices (absolute and in relation to quality and location differentials) reaching multi-year highs or records in many cases."

"Metals adjusted EBIT: $1.6 billion (-34%), mainly reflecting challenging conditions arising from China's prolonged Covid-19 lockdowns as well as higher overall inflation, triggering tighter monetary conditions and demand uncertainty."

On copper:

"Own sourced copper production of 1,058,100 tonnes was 137,600 tonnes (12%) lower than 2021, due to the basis change arising from the sale of Ernest Henry in January 2022 (44,800 tonnes), the ongoing geotechnical constraints at Katanga (44,300 tonnes), Collahuasi planned mining sequence changes (26,100 tonnes) and a lower contribution from Mount Isa (21,000 tonnes)."

On zinc:

"Own sourced zinc production of 938,500 tonnes was 179,300 tonnes (16%) lower than 2021, reflecting the disposal/cessation of South America operations (83,400 tonnes), closure of Matagami (30,100 tonnes) and lower volumes from Mount Isa (39,600 tonnes), as Lady Loretta approaches end of mine life."

On nickel:

"Own sourced nickel production of 107,500 tonnes was 5,200 tonnes (5%) higher than 2021, reflecting Murrin Murrin's scheduled major maintenance shut in the prior year and Koniambo running two production lines for the majority of 2022, partially offset by lower production at INO due to strike action in Canada and Norway."

On ferroalloys:

"Attributable ferrochrome production of 1,488,000 tonnes was in line with 2021."

On coal:

"Coal production of 110.0 million tonnes was 6.7 million tonnes (6%) higher than 2021, reflecting higher attributable production from Cerrejon, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not already own, less declines elsewhere in the portfolio."

"On a like for like basis, overall group production declined by 8.9 million tonnes (7%), primarily due to wet weather challenges and an extended community blockade in Colombia."

On oil exploration and production:

"Entitlement interest oil production of 6.1 million barrels of oil equivalent was 0.9 million barrels (16%) higher than 2021, due to a full year of production from the Alen gas project in Equatorial Guinea, following its commencement in March 2021."

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

February 15, 2023 03:34 ET (08:34 GMT)

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