Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GLENCORE PLC. We currently have 42 research reports from 4 professional analysts.
|09Jan17 05:05||RNS||TR-1: Notification of Major Interest in Shares|
|05Jan17 04:54||RNS||Mutanda Mining Sarl ("Mutanda")|
|03Jan17 04:22||RNS||Glencore and QIA partnership relating to Rosneft|
|15Dec16 04:47||RNS||Glencore Announces Pricing of Tender Offers|
|15Dec16 11:41||RNS||Glencore Announces Early Tender Offer Results|
|12Dec16 07:00||RNS||Glencore and QIA partnership with Rosneft|
|08Dec16 07:00||RNS||Rosneft holding statement|
Frequency of research reports
Research reports on
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Balance sheet improves further, while operating weakness was (largely) anticipated
25 Aug 16
Even though Glencore’s H1 16 results came materially behind consensus estimates, we were not very surprised as our estimates were on the cautious side. Continuation of the group’s deleveraging plan was again the key highlight. H1 sales came in at $69.4bn (-19% yoy), with weakness in metals and energy industrials being most pronounced. But, if the impact of divestments/discontinued operations was excluded, sales were down only 6% yoy. Adjusted EBIT (excluding income from associates and JVs) came in at $539m – translating into a wafer-thin operating margin of 0.8%, similar to the levels achieved in H2 15 (which were before any divestments/discontinued operations). Marketing (aka trading) continued to be Glencore’s sole shining spot, with an adjusted EBIT of $1.1bn. While industrial (primarily energy) was an operational drag – generating an operating loss of $315m. Besides the operating weakness and despite material deleveraging, H1 interest expenses came in 18% higher at $862m – primarily due to higher interest capitalisation in the comparable period. Net losses shrunk to $615m vs. $4.3bn and $817m in H2 15 and H1 15, respectively. While the pace of working capital efficiencies lost steam (release of $1.7bn vs. $4.7bn in H1 15), which along with weak operations resulted in reported OCFs collapsing 47% to $4bn, conservative capex (down 48% to $1.4bn) ensured that FCFs remained healthy. Net debt (excluding marketable inventories) was reduced further to $35.7bn vs. $41.3bn at 2015-end.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.