Ivan Glasenberg, chief executive officer and largest shareholder of Glencore International Plc (GLEN), will reap a higher dividend of $173 million for 2012, even after the commodities trader reported a drop in profit.
Glencore will distribute a final dividend of 10.35 cents a share on top of its first-half award of 5.4 cents, the Baar, Switzerland-based company said in a statement today. That’s 5 percent more than its 2011 payout and reflects “our confidence in our business and the continued ramp-up of our brown-field industrial assets,” the trader said today.
Glencore, which is seeking to complete a takeover of Xstrata Plc by April 16, paid out $1.07 billion in dividends last year. The final dividend announced today, totaling $735 million, is subject to approval by investors and due to be paid in June. Glasenberg’s 16 percent stake is valued at about $6.3 billion.
The 56-year-old former accountant turned coal trader has worked at Glencore, the largest publicly traded commodities supplier, since 1984, and became CEO in 2002. He received about $163 million in dividends for 2011 when the payout was 15 cents a share. He said at the time he planned to reinvest the final dividend in company stock.
Glasenberg today said he hadn’t decided on what he’ll do with this year’s dividend.
After a $10 billion initial public offering of 2011 Glencore’s directors and employees owned about 83.1 percent of the group. The listing also made billionaires of directors Daniel Mate, Telis Mistakidis, Tor Peterson and Alex Beard. The largest shareholders are subject to conditions requiring them to hold their stock for varying periods, according to the IPO prospectus.
Glencore intends to maintain or increase its total dividend every year as part of a progressive dividend policy, the company says on its website.
The company today reported a 25 percent slump in 2012 profit as slowing global economic growth eroded demand for raw materials. Net income excluding “significant items” dropped to $3.06 billion, it said. That compared with the $3.14 billion estimate of five analysts compiled by Bloomberg.
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