Glencore profit plunges 69%

Profit at Glencore, the mining and commodities trading company, fell by two-thirds in 2015.

Net income fell to £1.3 billion from £4.3 billion a year earlier, after slowing industrial growth in China pushed commodities prices to record lows.

Glencore’s shares plummeted to below 80p from a high above 300p in 2015 on investor concerns that falls in commodities prices and slowing demand in China would leave the company unable to pay its huge debts.

The shares are up 1.80% to 135p at the start of trading on Tuesday.

Here’s the chart:

“Our rigorous focus on debt reduction, supply discipline and cost efficiencies enabled Glencore to record a robust performance in difficult market conditions,” CEO Ivan Glasenberg said in a statement on Tuesday.

To steady the ship, Glencore said it would target a total net debt of $18 billion (£12.8 billion) in 2016, trimming several billion dollars more debt from its pile than originally planned.

“We remain focused on preserving our investment grade credit rating status. The steps that we have announced and taken so far have contributed to our current stable credit ratings from both major credit ratings’ agencies,” Glasenberg said.

Glencore slashed its capital expenditure from $5 billion to $3.8 billion for 2016 to hit its debt repayment target.

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