August 8, 2018 / 6:23 AM / 4 months ago

BRIEF-Glencore Posts HY Marketing Adjusted EBIT Of $1.5 Bln, Up 12 Pct

Aug 8 (Reuters) - Glencore PLC:

* AGAINST A VOLATILE BUT FAVOURABLE TRADING AND COMMODITY PRICE ENVIRONMENT, MARKETING PERFORMED TOWARDS UPPER END OF GUIDANCE RANGE IN HY

* HY FFO TO NET DEBT RATIO WAS 133.2 PERCENT VERSUS. 108.3 PERCENT REPORTED AS OF DEC. 31

* HY ADJUSTED EBITDA OF $8.3 BILLION, UP 23%

* HY NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF $2.8 BILLION, UP 13%

* HY NET DEBT OF $9.0 BILLION, DOWN 16%

* 2ND INSTALMENT OF 2018 DISTRIBUTION OF $1.4 BILLION ($0.10 PER SHARE) PAYABLE IN SEPTEMBER

* HY MARKETING ADJUSTED EBIT OF $1.5 BILLION, UP 12%

* IN HY LOWER CROP YIELDS IN KEY GEOGRAPHIES REFLECTED IN WEAKER AGRICULTURAL PRODUCTS PERFORMANCE; STRONGER H2 EXPECTED

* 2018E DISTRIBUTIONS / BUYBACKS NOW TOTAL $4.2 BILLION

* GOING FORWARD, ANTICIPATES THAT CO'S ECONOMIC CONTRIBUTION AND PAYMENTS TO GOVERNMENT IN THE DRC WILL BE SIGNIFICANTLY HIGHER

* AS PREVIOUSLY INDICATED, FY PERFORMANCE IS EXPECTED TO BE WITHIN THE TOP HALF OF THE LONG TERM $2.2-3.2 BILLION EBIT GUIDANCE RANGE

* "WHILE THE FINANCIAL MARKET OUTLOOK IS LIKELY TO REMAIN VOLATILE, WE REMAIN HIGHLY CONFIDENT IN THE STRENGTH OF OUR UNDERLYING BUSINESS"

* GLENCORE PLC SAYS "IN OUR COMMODITIES, DEMAND GROWTH APPEARS HEALTHY AND SUPPLY DISCIPLINE PERSISTS"

* COMMODITY PRICES IMPROVED OVER H1 2018, SUPPORTED BY HEALTHY DEMAND AND GENERALLY RELATIVELY TIGHT SUPPLY CONDITIONS

* DURING HY, THERE WAS MODEST COST PRESSURE FROM THE WEAKER U.S. DOLLAR (ON AVERAGE) AGAINST MOST OF CO'S PRODUCER COUNTRY CURRENCIES

* U.S. DOLLAR STRENGTHENED SIGNIFICANTLY TOWARDS THE END OF HY, WHICH SHOULD PROVIDE SOME COST RELIEF GOING INTO H2 2018

* GLENCORE SAYS "WE HAVE SEEN SOME INFLATIONARY PRESSURE ON OUR INPUT COSTS SUCH AS FUEL, POWER, CONSUMABLES AND STEEL-RELATED PRODUCTS"

* NET FUNDING AS AT 30 JUNE 2018 DECREASED BY $1,004 MILLION TO $31,894 MILLION

* NET DEBT (NET FUNDING LESS READILY MARKETABLE INVENTORIES) AT HY-END DECREASED BY $1,676 MILLION OVER THE PERIOD TO $8,997 MILLION Source text for Eikon: Further company coverage:

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