Glencore Announces $7.1 Billion Payout To Its Shareholders
Glencore has announced a $7.1 billion worth of payout to its investors as well as a share buyback program of $1.5 billion. This announcement was made on Wednesday after the company had a really profitable year in 2022.
The major reason which made Glencore so much profit was the strong prices of oil and coal products. These 2 products present a major portion of the company's business and thus played a vital role in a strong 2022.
As per the 2022 results, the net debt of the company was cut from $6 billion by 2021's end to only $75 million by the end of the year.
According to Glencore's CEO, a lot of factors played a role in the extraordinary profitability of the company in 2022. From the global pandemic to conflict in Europe & even the high energy prices, everything turned out to be good for Glencore.
In addition, the company also earned a $6.4 billion profit through trading fossil fuels and various metals. Overall, these numbers from 2022 are almost up by 73% which is why experts believe such a performance is highly unlikely in 2023.
It seems that the current announcement of payout to the shareholders will improve investor retention. In addition, it will also attract more investors who are on the lookout for high dividend-paying stocks. Similarly, the share buyback program will also help the company to boost its own share prices.
For 2023 and even the next few years, it appears that Glencore will not be as lucky as it was in 2022. That's the main reason why believe that Glencore should be more cautious in its approach as we still don't know what's ahead in 2023!
As for the opportunities that Glencoare can use to its advantage, well there are plenty! From COVID to the supply chain disruptions around the world, Glencore can profit from all of it. And not to mention that the power crisis in the Europe & Asian region can also create opportunities for Glencore in 2023.