Analyst Views: What do you make of Glencore’s results and major share buyback?
MARC ELLIOT | INVESTEC
With the key share buyback to return cash to shareholders, we note Glencore is the first of the diversifieds to make such a firm commitment. Operationally, marketing activities put in a solid performance, marginally ahead of expectations, as did industrial activities.
CHRISTOPHER LAFEMINA | JEFFERIES
Glencore reported slightly better-than-expected financial results and also announced a better-than-expected increase to its interim dividend, as well as a $1bn share repurchase to be completed by 31 March 2015. Glencore’s management and board proved today that shareholders are the priority.
JONATHAN JACKSON | KILLIK
In a sign of ongoing capital discipline, the group reduced investment during the period, while the interim dividend was increased slightly more than expected. We are positive on the shares, which provide exposure to the trend of urbanisation in emerging markets and recovery in the developed world.