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Glencore scraps 2020 dividend as it pours cash into trading

The world's biggest commodity trader, Glencore, will not pay out dividend in 2020 due to soaring debt accrued in an effort to protect the company from the effects of the coronavirus.

Photo: ARND WIEGMANN/REUTERS / X90184

Glencore Plc ditched its annual dividend after net debt surged because the commodities giant poured money into its trading business to cash in on volatile price swings.

The company put the payment on hold earlier this year as it moved to protect itself from potential shocks from the coronavirus pandemic. Glencore bet heavily on oil when prices collapsed earlier this year, leading to record gains but also a spike in its debt. That, combined with uncertainty over the near-term outlook, prompted a decision to cancel the dividend.

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