The Swiss mining and commodities trading firm Glencore International has posted a net income of $4.06bn for the full year ended 31 December 2011, up 7 per cent on last year's $3.80bn.
Revenue increased by 28 per cent to $186.15bn, largely due to higher average prices for most of the commodities that the group produces and markets.
During 2011, metals and minerals, energy products and agricultural products contributed revenue of $51.98bn, $117.06bn and $17.10bn, respectively.
Ivan Glasenberg, CEO of Glencore, said: “Glencore delivered a solid performance in 2011, despite challenging economic conditions and markets. In particular, the industrial business benefited from stronger average prices for the key commodities it produces, as well as the planned increase in production at many operations including Prodeco, Katanga, Kazzinc and Mutanda.”
Income for the year was $4.26bn (2010: $1.64bn). Glencore used net cash of $350m for the acquisition of subsidiaries in 2011.
Selling and administrative expenses were $ 857m in 2011, a decrease of 19 per cent from $1.06bn in 2010. This was primarily due to lower variable employee compensation charges.
The company reduced net debt by 12 per cent from $14.75bn in 2010 to $12.93bn in 2011. The net figure for other expenses in 2011 was $511m (2010: $8m).
Glasenberg added: “Thus far in 2012, market conditions have improved and the year has started well across all segments of our business. Emerging market urbanisation will continue to increase commodity intensity per capita as the demand for goods and products that industrialised societies take for granted increases. This demand dynamic alongside the strength of our organic growth prospects will continue to be a fundamental driver of our business in 2012.”
As of 31 December 2011, Glencore’s total assets were $86.16bn (2010: $79.78bn).