Bulletin: Glencore's 2018 Results Are Strong, And Its Plans To Reduce Risk Tolerance And Address Climate Change Are Positive

LONDON (S&P Global Ratings) Feb. 21, 2019--S&P Global Ratings said today that the $15.8 million of adjusted EBITDA reported by mining and trading company Glencore PLC (BBB+/Stable/A-2) in 2018 is in line with our previous projection from May 2018, and that the solid headroom in the ratings remains intact. The reported amount is equivalent to S&P Global Ratings-adjusted EBITDA of about $14 billion. Our preliminary calculations show that Glencore's adjusted funds from operations to debt was above 60% as of Dec. 31, 2018, comfortably exceeding our 42.5% threshold for the rating. The results primarily reflect increases in coal and copper prices. At the same time, we continue to see early signs of cost inflation and country risks, partly tempering the

...LONDON (S&P Global Ratings) Feb. 21, 2019--S&P Global Ratings said today that the $15.8 million of adjusted EBITDA reported by mining and trading company Glencore PLC (###+/Stable/A-2) in 2018 is in line with our previous projection from May 2018, and that the solid headroom in the ratings remains intact. The reported amount is equivalent to S&P Global Ratings-adjusted EBITDA of about $14 billion. Our preliminary calculations show that Glencore's adjusted funds from operations to debt was above 60% as of Dec. 31, 2018, comfortably exceeding our 42.5% threshold for the rating. The results primarily reflect increases in coal and copper prices. At the same time, we continue to see early signs of cost inflation and country risks, partly tempering the increase in prices. We continue to take a positive view of Glencore's exposure to industrial metals rather than iron ore, as we expect industrial metals to see higher growth rates over the coming years, with some constraints on supply. Unlike other...

Bulletin