Glencore share price rises 2.1 per cent as miner reveals it is on track to pay out $1bn in dividends next year
Shares in Glencore rose 2.2 per cent this morning after the miner and commodities trader revealed that it is on track to pay out $1bn (£798m) in dividends in 2017.
Glencore said it will distribute the $1bn in two equal portions in the first and second half of next year.
The company announced a new dividend policy ahead of an investor update this afternoon, which will take effect from 2018 – Glencore has pledged a $1bn base distribution, "reflecting the resilience, predictability and stability of marketing cash flows", and a variable distribution representing a minimum payout of 25 per cent of industrial free cash flow.
"Last year we announced a programme of measures to reduce our debt and structurally increase the flexibility and strength of our balance sheet," said Glencore boss Ivan Glasenberg.
"We have delivered on our commitments and done so in a way that has preserved the long-term earnings capability of the group. Glencore can look forward to the future with confidence, based on our scalable and low cost industrial operations and robust marketing business."
The group has been selling off assets in a bid to bring down debt, and today the company said it was on track to meet its target of $16.5-17.5bn net debt by the end of 2016.
Glencore said ts divestment processes had brought in $6.3bn – well above original guidance of $1-2bn.
The company's share price has been recovering steadily this year, and this morning was one of the biggest risers on the FTSE.
