Glencore Reports Fiscal 2013 Loss

NEW YORK - Mar 4/14 - SNS -- Glencore Xstrata plc reported a net loss of $7,402 million on revenue of $232,694 million for the fiscal year ending December 31, 2013, compared to a net gain of $1,004 million on revenue of $236,236 million the previous fiscal year.

The reported results comprise those of the legacy Glencore operations for 2013 (including the Group's equity accounted 34% interest in Xstrata up to the date of acquisition) plus 100% of the results of Xstrata plc from the date of acquisition, 2 May 2013.

Glencore's metals and minerals division reported revenue for 2013 of $67,181 million in 2013, down from $69,392 million in 2012. Revenue in the energy division totalled $142,248 million, compared to $145,713 million in 2012. Revenue in the agricultural division jumped from $20,825 to $30,039 million.

"Overall, the agricultural products market was challenging with limited volatility and arbitrage opportunities," the company reported in its financial statements. "Within this environment, oilseed prices remained firm in H2 2013 buoyed by strong Chinese demand for soybeans and a tight supply/demand picture, particularly in the US. By contrast grain prices declined in response to record North American and large EU crops.

"The prospect of a bumper Brazilian soybean new crop may alleviate some of the oilseed tightness. Our grain and oilseed volumes increased significantly, primarily as a result of the Viterra acquisition," Glencore said in its financial statements.

"A record Canadian crop was positive for grain procurement and handling results, however a lack of railroad capacity constrained volume growth. The Australian grain handling business performed satisfactorily, against a backdrop of a good, but not as large as expected, South Australian crop."

Glencore completed the sale of the malt and pasta businesses it acquired when it bought Viterra. It expects construction of its joint venture export elevator in Newcastle, Australia to be completed this month. In addition, the first stage of a new oilseed export facility at Itaqui, Brazil is expected to be complete by July 2014.