Glencore Swings to Profit, Net Debt Drops on Asset Sales

By Scott Patterson

LONDON--Glencore PLC, buoyed by higher commodity prices, swung into the black last year, an eye-popping recovery for the Swiss mining giant that a year ago reported billions in losses.

The U.K.-listed miner on Tuesday reported net income of $1.4 billion for the year ended Dec. 31, 2016, compared with a $4.9 billion net loss the previous year. Revenue rose to $152.9 billion last year from $147.4 billion a year ago, adjusted for discontinued operations.

Glencore's net debt fell to $15.5 billion by year-end from $25.9 billion at the end of 2015, as higher commodity prices, a dividend suspension and $4.7 billion in asset sales took pressure off the Swiss mining giant's balance sheet.

"Glencore's full-year results were better than anticipated," RBC Capital Markets analysts Tyler Broda wrote in a note.

With Glencore's balance sheet in better shape, investors will look for signs of whether its chief executive, Ivan Glasenberg, is looking to do more deals.

Write to Scott Patterson at [e-mail]

(END) Dow Jones Newswires

February 23, 2017 02:37 ET (07:37 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.