Glencore demonstrated worst records in their history

According to statements of the Swiss company for the year of 2015, Glencore’s net loss amounted to $4,96 billion against last year’s profit of $2.3 billion of Its profit for the year decreased by 70%, to $1,34 billion in revenue in 2015 decreased by 23% compared with the previous year (up to $170 billion). Adjusted EBITDA fell 32% to $8.7 billion.

At the same time, the company’s net debt as at the end of 2015 decreased by 15% compared with last year (up to $are 25.89 billion).

The Glencore management plans in 2016 to cut its debt, which was formed in 2013 after the merger of mining company Xstrata, up to $17-18 billion by the end of 2016. CEO Ivan glasenberg after reporting was made public, stressed that the debt repayment is a priority for them.

To reduce debt, Glencore intends by reducing costs, suspend the payment of dividends, issue of new shares and sale of assets. In particular, the company stated that in 2016 plans to sell assets for $4-5 billion

46-the percentage of Glencore in the company “RussNeft”, according to the reports, is estimated at $685 million.

The company notes that the financial results in 2015 affected by the decline in oil prices and metals, the slowdown of Chinese economic growth and a strong dollar.

The markets reacted to weak statements of the company: shares in Glencore on the London stock exchange fell by 4.6% to £1,29 per piece.

As noted by The Wall Street Journal, Glencore is on the same measures that other companies working in the extractive industry: they limit or cease dividend payments, reduce capital costs and are looking for buyers for non-core assets. In recent weeks a number of companies operating in the mining industry (Rio Tinto, Vale, BHP Billiton), reported a sharp deterioration of financial results of operations.