Glencore to pay $4bn to shareholders as earnings soar

Glencore said it would pay $4bn (£3bn) to shareholders as the company reported an 84% increase in underlying earnings boosted by soaring commodity prices.

Adjusted earnings before interest, tax depreciation and amortisation (Ebitda) rose to $21.32bn in the year to the end of December from $1.56bn a year earlier as revenue increased 43% to $203.75bn. The FTSE 100 group swung to a $4.97bn net profit from a $1.9bn loss.

The miner and commodities trader said it would pay a dividend of $0.26 a share, totalling $3.4bn, and announced a $550m buyback programme. Glencore took a provision of $1.5bn to cover the cost of investigations in the US, UK and Brazil.

Commodities production earnings rose 118% to $17.1bn with many prices hitting record or multiyear highs as demand outstripped supply. Trading revenue rose 46% to $182bn.

Chief Executive Gary Nagle said: "In spite of the ongoing challenges of Covid-19, 2021 was an extraordinary year for Glencore, reflecting rising demand for our metals and energy products, record adjusted Ebitda and the transition to new leadership."

Glencore shares rose 4.2% to 439.65 at 08:37 GMT - the stock's highest price for more than 10 years.