Glencore scraps $2.6 bln dividend after loss

Glencore has become the first major mining company to scrap its dividend for the year.

On Thursday (Aug 5) it said that the economic outlook was just too uncertain.

Instead, the mining giant will focus on cutting its debt.

Glencore's debt jumped to $19.7 billion in the first half of the year - over 2 billion more than at the end of 2019.

That's partly due to a fall in oil prices, as well as a $3.2 billion charge.

Its shares listed in London, had slumped nearly 3.7% in morning trade.

Glencore, which both mines and trades commodities worldwide, had expected to pay $2.6 billion in dividends this year.

Rivals Rio Tinto and Anglo American have already gone ahead with their payouts.

Oil market volatility though helped Glencore's trading divisions post record adjusted earnings before interest and taxes of $2 billion.

And the company expects to be at the top end of the $2.2 billion to $3.2 billion range by the end of the year.

However, the miner posted a net loss of $2.6 billion in the first-half, down from a profit of $226 million a year ago.

Glencore's CEO says it will wait to see how the global crisis evolves and review whether to resume dividend payments next year.