Glencore | Operations unhindered by subpoena
GLN's H1 '18 results were in line with market expectations but fell short of our estimates. EPS increased by 12% y/y to USc19/share while EPS pre-significant items increased by 44% y/y to USc23/share. Negatively, unit costs for copper and zinc were above GLN's prior guidance due to lower by-product credits and resulted in the Group revising up its FY '18f cost guidance. While we believe that the subpoena from the DoJ continues to represent a large unknown risk to GLN, the Group's operations appear to continue unhindered.We do not expect further de-gearing in FY ‘18f. However, a reduction in net debt in FY ‘19f should lead to increased returns to shareholders. In our view, GLN would favour share buybacks in the short-term given the Group's view that its “current equity price materially undervalues the businessâ€.
Glencore is engaged as a natural resource companies. Co. is organized and operates on a worldwide basis in three main business segments: Metals and minerals, which comprised of zinc, copper, lead, alumina, aluminium, ferroalloys, nickel, cobalt and iron ore; Energy products, which comprised of crude oil, oil products, steam coal and metallurgical coal; and Agricultural products, which comprised of wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton and sugar supported by investments in storage, handling, processing and port facilities.
Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.
Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.
Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.