2:49 PM
alphaadvisory
Glencore International PLC (GLEN.LN) reported Tuesday a mixed set of
production results on a pro-forma basis with Xstrata PLC (XTA.LN) as
base metals output largely fell in 2012 while coal, oil, and
agricultural output rose.
The report marks the first set of production results provided by Glencore on a pro-forma basis ahead of the completion of its planned all-share merger with Xstrata. Glencore is still waiting for regulatory approval from China before closing the deal. Glencore and Xstrata last month extended the deadline for closing the deal to March 15 in order to secure necessary regulatory approvals.
Glencore didn't provide any details about its marketing activities, a key earnings generator for the combined company.
The pro-forma figures showed that total copper contained production fell 9% to 1.2 million metric tons while total zinc contained output fell 1% to 1.59 million tons. The figures are based on using feed from its own sources and excludes feed from third parties. Total lead contained output from its own feed rose 4% and nickel contained output from its own feed rose 3% while gold output from its own feed fell 8% to 1.56 million troy ounces.
On the energy front, its own coal production rose 26% to 132.2 million tons while its share of oil output rose more than eight-fold to 5.36 million barrels due to the ramp up of Glencore's joint-venture Aseng oil field in Equatorial Guinea ahead of schedule. The company expects oil output from the Alen field to begin in the third quarter of 2013.
On the agricultural front, output rose 16% to 8.75 million tons as higher sugarcane processing and oilseed crushing offset declines in rice milling and farming among other things.
At 0809 GMT, Glencore's shares were down 0.2% at 386 pence a share while Xstrata's shares were down 0.3% at 1,157 pence. Meanwhile, the U.K.'s FTSE 350 mining index was down 0.2%.
The report marks the first set of production results provided by Glencore on a pro-forma basis ahead of the completion of its planned all-share merger with Xstrata. Glencore is still waiting for regulatory approval from China before closing the deal. Glencore and Xstrata last month extended the deadline for closing the deal to March 15 in order to secure necessary regulatory approvals.
Glencore didn't provide any details about its marketing activities, a key earnings generator for the combined company.
The pro-forma figures showed that total copper contained production fell 9% to 1.2 million metric tons while total zinc contained output fell 1% to 1.59 million tons. The figures are based on using feed from its own sources and excludes feed from third parties. Total lead contained output from its own feed rose 4% and nickel contained output from its own feed rose 3% while gold output from its own feed fell 8% to 1.56 million troy ounces.
On the energy front, its own coal production rose 26% to 132.2 million tons while its share of oil output rose more than eight-fold to 5.36 million barrels due to the ramp up of Glencore's joint-venture Aseng oil field in Equatorial Guinea ahead of schedule. The company expects oil output from the Alen field to begin in the third quarter of 2013.
On the agricultural front, output rose 16% to 8.75 million tons as higher sugarcane processing and oilseed crushing offset declines in rice milling and farming among other things.
At 0809 GMT, Glencore's shares were down 0.2% at 386 pence a share while Xstrata's shares were down 0.3% at 1,157 pence. Meanwhile, the U.K.'s FTSE 350 mining index was down 0.2%.
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