Glencore said on Wednesday (Feb 21) lower commodity prices had halved its earnings last year, and slashed its payout to investors, as the company saves to fund the acquisition of a 77 per cent stake in Teck Resources’ metallurgical coal business.

After two consecutive record years, adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) halved to US$17.1 billion from US$34.1 billion a year earlier, in line with analysts’ consensus estimates of US$17.15 billion.

In preliminary 2023 results, the miner and trader said net debt stood at US$4.92 billion at the end of the year, from just US$75 million at the end of 2022.

London-listed Glencore’s payout of US$1.6 billion announced on Wednesday does not include a new buyback scheme, after the existing one ends this month, nor a special dividend, as the company uses its cash to fund the $6.9 billion acquisition of Canadian miner Teck’s steelmaking coal unit. REUTERS