Crude oil, Gas prices today
London, August 07, 2024, (Oilandgaspress) ––Glencore Plc has abandoned plans to spin off its coal unit just nine months after saying it would exit the profitable but polluting business, following discussions with its shareholders who pushed back against the move.
Glencore’s announcement; Following completion of the acquisition of a 77% interest in Elk Valley Resources (EVR) on 11 July 2024, we have undertaken a consultation process to assess shareholder views regarding retaining or demerging the coal and carbon steel materials business.
Shareholders representing an estimated two-thirds of eligible voting shares were consulted for their views. Over 95% of shareholders that specifically expressed a preference for retention or demerger supported the retention of the coal and carbon steel materials business, primarily on the basis that retention should enhance Glencore’s cash generating capacity to fund opportunities in our transition metals portfolio, such as our copper growth project pipeline, as well as accelerate and optimise the return of excess cash flows to shareholders.
Numerous shareholders also expressed scepticism on the scale of a potential MetalsCo (the remaining business) valuation uplift arising from a demerger and did not see separation as ESG positive given the wide support for our latest Climate Action Transition Plan (CATP), including our responsible thermal coal decline strategy, and the belief in the important role that steelmaking coal is expected to play in supporting the infrastructure needed for the energy transition.
Some shareholders also abstained from offering a specific preference, principally advising that consideration of a demerger is a strategic decision for the Board.
The outcome of this consultation process and the Group’s own analysis have led the Board to conclude that, between the options of retaining or demerging, considering both risk and opportunity scenarios, retention of the coal and carbon steel materials business currently provides the optimal pathway for demonstrable and realisable value creation for Glencore shareholders.
| Oil and Gas Blends | Units | Oil Price US$/bbl | Change |
| Crude Oil (WTI) | USD/bbl | $74.86 | Up |
| Crude Oil (Brent) | USD/bbl | $78.15 | Up |
| Bonny Light 01/08/24 | USD/bbl | $85.57 | — |
| Saharan Blend | USD/bbl | $85.61 | — |
| Natural Gas | USD/MMBtu | $2.10 | Up |
| Murban Crude | USD/bbl | $76.90 | Up |
| OPEC basket 06/08/24 | USD/bbl | $75.34 | Up |
