LONDON – Commodities group Glencore says its “rigorous” focus on reducing its debt allows it to cope with even lower raw material costs as it reports a 69-per cent slump in 2015 profits.
In a statement Tuesday, the company — which is based in Baar, Switzerland, but has a share listing in London — says its net income slid to $1.34 billion during the year from $4.29 billion in 2014.
Just a few months ago, there were real concerns about the ability of Glencore to cope with slumping commodity prices. In response, the company sold off assets, cut production and costs.
Chief executive Ivan Glasenberg says this strategy enabled Glencore to record a “robust performance in difficult market conditions.”
He’s also confident Glencore can be “comfortably cash generative” even with lower commodity prices.