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Glencore - COVID-19 update, dividend suspended

Sophie Lund-Yates, Equity Analyst | 31 March 2020 | A A A
Glencore - COVID-19 update, dividend suspended

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Glencore plc Ord USD0.01

Sell: 149.54 | Buy: 149.62 | Change -7.42 (-4.72%)
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Given the ongoing disruption caused by COVID-19, Glencore has decided to defer the decision on whether to pay its $0.20 per share dividend until the third quarter of 2020.

Glencore has refinanced its revolving credit facilities and has no specific financial obligations, known as covenants, it must meet to satisfy the terms set by its lenders. The group has $10.1bn in committed available funding.

Despite the global disruption, Glencore has not seen any material disruption to its operations and continues to generate cash.

The shares remained broadly flat following today's announcement.

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COVID-19 update (26/03/20)

In light of increasing government COVID-19 restrictions, Glencore announced that while there hasn't been any material disruption to its larger operations, smaller assets have had to restrict or stop operations.

The group have introduced a number of precautionary health and safety measures across their offices and industrial assets. Glencore continues to review its Industrial operations to ensure it's positioned appropriately during these times.

On March 20 the group said the Marketing business was performing in line with annualised operating profit guidance of $2.2bn - $3.2bn per year.

At the end of 2019, Glencore had access to $10bn in cash and undrawn credit. However, the group reports that this liquidity has increased since the start of this year.

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