Tuesday, 19 August 2014

How Glencore Counters Commodities Cycles: A Review of 2013

Glencore, as its annual report boasts, is a well-diversified commodities company, active in over ninety commodities. It acquired Xstrata in 2013 and realised synergies of around $2.4 billion. Its 2013 revenue came in at 239 billion dollars.

Its KPIs include: EBIT/EBITDA, Funds from Operations (FFO) and Net debt/FFO to Net debt (large expensive projects tend to increase this ratio).

Glencore computes Value at Risk and has set a 1 day 95% VaR limit of $100m.

Glencore shares trade in London (GLEN), Hong Kong and Joburg. Its financial accounts are in USD.

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