Bern - Miner-trader Glencore reported an 18 percent increase in 2016 profits, buoyed by a rebound in commodities.It says it has never been so well positioned financially, meaning it was ready for small acquisitions or big dividends.
Earnings before interest, tax, depreciation and amortisation were $10.3billion (R134.85 billion), up 18 percent.
Marketing adjusted earnings before interest and tax was $2.8 billion, up 14 percent and above previous guidance of $2.5 to $2.7 billion.
For 2017, Glencore is guiding for $2.2 billion to $2.5 billion marketing profits and said the low range reflected the sale of 50 percent of Glencore Agriculture in December 2016.
Read also: Glencore signals dividend
A commodities rout in 2015 led Glencore to announce asset sales and, along with the rest of the industry, it embarked on resolute cost-cutting. Yesterday, it said low costs for copper, zinc and nickel would be sustained into 2017 along with expected higher coal margins.
“Since our IPO in 2011 and subsequent acquisition and integration of Xstrata, Glencore has never been so well positioned as it is today,” Glencore chief executive Ivan Glasenberg said.
He told reporters in a media call that surplus cash could be used for small deals and perhaps a special dividend.