Glencore sees impact on some “smaller operations” from coronavirus restrictions
The FTSE 100 commodities colossus said there had been “some impact” on some of its “smaller operations” from the restrictions on movement of people imposed by various governments.
Underlying profit (EBIT) for the current year is expected to be within its long-term guidance range of US$2.2-3.2bn, the Swiss-headquartered group said.
Cash and available credit stood at US$10bn at the end of 2019 and this has since increased as working capital funding requirements have reduced following falls in commodity prices.
While lower commodity prices is not a good thing for the company’s top line, the surging power of the dollar against all other currencies, as well as lower oil prices and interest rates have provided “substantial cash offsets”.
Glencore said it had received “strong support” from its banks in the annual refinancing of its revolving credit facilities, which is expected to be complete in the next few weeks, still with “no financial covenants, rating triggers, material adverse change clauses or external factor clauses”.
Shares in the company, down more than 50% so far this year, were up 3% to 120.74p on Friday afternoon.